Louisville Homes Blog

Found this neat little post on Students of Success that holds Louisville real estate in high esteem.

The 10 most livable and most affordable metro areas as determined by criteria developed by “Places Rated Almanac” (David Savageau) and the latest quarterly median sales prices compiled by the National Association of Realtors are:

1. Salt Lake City-Ogden, UT $157,000
2. Tampa-St. Petersburg-Clearwater, FL $172,800
3. Raleigh-Durham-Chapel Hill, NC $175,600
4. Houston, TX $138,100
5. Phoenix, AZ $193,800
6. Cincinnati OH, $139,600
7. Louisville, KY $130,100

So Louisville combines both being a very livable city and being reasonably priced as well? Why aren’t we hearing more of this positive news?

“With all the negative news about spiking home prices and the widening affordability gap, it’s refreshing to find highly desirable metro areas where most buyers can find affordable homes,” said Michael Bearden, president and CEO of HouseHunt, Inc.

That’s what I’d like to know Michael.

With foreclosures up and more urban properties that need updating, the idea of flipping a house is becoming more and more common. So common, in fact, that TLC has a show entirely devoted to the idea called Flip That House.

Louisville’s own Scherer family will be highlighted on an episode due to air early next year. How did this family succeed in getting the producers attention?

“They fell in love with the fact that it was being flipped by a family,” Scherer said.

Don’t think “flipping” is easy. It’s entirely possible to lose money due to many different factors, so beware. But for the Scherer family it’s about more than just making a few extra bucks.

“It brought us together as a family,” Scherer said. “It’s truly amazing what a family can do when it puts its mind to something. I never thought I would see the day my wife was cutting walls apart with a power saw or my mom framing with a nail gun.”

Sounds like fun. I’m looking forward the broadcast!

Louisville may not be Yuma, Arizona, who leads the nation with 90% chance of having a sunny day, but we’re ahead of Chicago, Detroit and Cincinnati! This according to the National Climatic Data Center. What constitutes a sunny day anyway? More than 50% of hours with at least some sunshine?

In any event, it’s interesting to see how technology improvements make their way into new construction and home improvement. What brought this to mind is that the Department of Energy is sponsoring a competition to build the best home that runs entirely on solar energy. With teams from MIT and other top schools, they’re really pushing the envelope. In fact, the competition requires that they use only “commercially available products”.

“You can’t yank something out of the lab and throw it onto your roof. You have to use commercial, production-grade products,” said Kurt Keville, the project’s faculty adviser and a researcher at MIT’s Institute for Soldier Nanotechnologies. “I was heartbroken.”

Here in Louisville, Kimbel Construction is looking to differentiate themselves as our city’s energy-efficient builder, even though his Web site doesn’t go into detail about what that means. It would certainly be worth your time to interview Mr. Kimbel if a new home is in your future.

Even if you have never considered public education for your children in other parts of the country, you should look at what is offered in the Jefferson County Public School system. It will really surprise you!

Moving to a new home can be an ordeal for any family. The issues that you face while house hunting are compounded even more when it involves school-aged children. Relocating to Louisville may be one of the most difficult transitions because the school system is so complex. The good news is that Louisville offers some pretty amazing educational opportunities. The bad news is that you have to be very well informed in order to make the best choice.

I moved to Louisville when my children were in Kindergarten and first grade, respectively. I knew nothing and had no one to tell me what options were available to me. Fortunately, our Realtor guided me to a neighborhood where my home school was very good.

However, I had no idea that there were other possible choices. There are elementary schools with Montessori philosophy. There is the Brown School downtown that offers a very artistic and open style of education. (Children who select the Brown School can attend through High School.)

From first grade to graduation, Louisville offers schools that focus on many different areas, such as: Performing and Visual Arts, Math, Science and Technology, Computers, or even Aerospace Engineering.

Whether your preference is for a school with uniforms and strong discipline or you prefer a school that’s “artsy,” Louisville has something to offer every parent. It is vital that you learn about these different options before you decide on the area of town that you wish to live. It is also a good idea for you to choose a Realtor who knows and understands the importance of these crucial decisions.

After living here for a few years, I was able to place my two sons on a track that was right for us. We chose to send them to a Middle School that focused on Math, Science, and Technology (MST), which was also a feeder school to the magnet high school, Dupont Manual. This amazing, world-renowned high school offers five different programs including Performing Arts, Communications, High School University, Visual Arts and MST. Manual produced 43 Merit Scholarship semi-finalists and 23 finalists last year alone!

My son was one of those finalists and he starts his freshman year at Cornell University this fall. My other son graduates this spring and he is also looking at some very competitive Universities, as well.

Louisville has an incredible school system, but you have to know how to find the best fit for you. For people moving in from out of town, it’s a great help to have a Realtor who can help guide you from the beginning.

Carol Dines is a Realtor with Coldwell Banker McMahan in Louisville. Raised in New York City, Carol was an actor/singer and has performed all over the U.S. After she married, she went into Advertising/Public Relations and had a long and successful career. With her children almost grown, Carol chose to utilize all of her interpersonal and marketing skills in real estate. Active in the community, she performs with several local theater groups but her greatest pride has been in successfully navigating the Jefferson County Public School system and seeing that her children had the best education possible.

As a Realtor, I see so many homes with two-car garages that are too cluttered to actually allow two cars to fit inside. If storage space is an issue in your home, you have several options available.

It’s obvious that garage organization systems are a hot item right now, but where do you go to find the latest products? First, you might consider a company that began by specializing in closet organization but have since branched out to include garages, as well. The large, national home improvement stores like Home Depot and Lowe’s have some great, low-cost options but if you want someone to help you make the most of your space, you’ll need to contact a design specialist.

That’s where Great Garage of Louisville comes in. Located off N. English Station Road, these guys specialize in garage organization. You’ll get personal service from a company right here in Louisville. What more could you ask for?

In Terri Cullen’s piece, The McMansion Effect, she delves into the idea of homeowners opting to renovate rather than relocate and how home values rise and fall based on trends of the neighborhood.

It’s an interesting piece, though her numbers for the New Jersey suburbs are hardly applicable to us here in Louisville.

I think the key paragraph is this one.

That said, people who are shopping for homes in a certain neighborhood expect certain amenities in those homes, says Kermit Baker, director of the remodeling futures program at Harvard University’s Joint Center for Housing Studies. “If you’re not keeping up with other homes in the neighborhood, you may have home buyers walk away from it,” he says. “There’s a limited number of folks who want to buy assuming they’re going to have to do a significant remodeling project.”

Today’s buyers don’t want to be welcomed into their new home knowing that there’s a remodeling project looming overhead. Our lives are already busy enough as is.

While the housing market is showing signs of increasing in terms of the number of transactions, it still remains a strong buyer’s market. What this means is that inventory—the number of homes currently listed—is quite high and that gives buyers more choices. More choices mean more competition for the sale which, in turn, pushes prices down.

What is good news for buyers is inevitably bad news for sellers. Homes are taking longer to sell and prices are lower than in years past.

Even still, the right combination of strategy and execution will still get homes sold in today’s market. This underscores the need for sellers to bring in professional assistance. For Sale by Owner properties are finding it tougher and tougher to get the kind of exposure and promotion their properties need.

Dear Seller,

First rule is do not despair. Second rule is “Make your home shine!” To begin this journey, totally lose your seller instincts and put yourself in the buyer seat.

The drive begins when your buyer pulls up to your home. This is your opportunity to provide a moment of WOW. This is the time when the buyer is engaged, open and willing to weigh what your home has to offer against their needs, as well as what the other homes they have seen had to offer.

It is called curb appeal and you should not under estimate it. It goes without saying that the façade of your home should be in excellent shape, without flaking paint or if your roof is in poor condition it is time to repair or replace it. This is the time to break out all the stops: make sure flower beds are free of weeds and edged, sidewalk and lawn free of brush, lawn freshly mowed, windows recently cleaned and above all, the front door that greets your potential buyer, should be sparkling clean. Do not underestimate curb appeal, every buyer will appreciate a well-groomed landscape and will assume that the same care and consideration given to the outside has been given to the inside. Hopefully this is true.

Second chance to WOW is with a fresh, clean odor. Forget smoking in the house, this is a true turn off! If you must smoke, go outside and don’t leave any spent butts in view. The next step is to de-clutter. Then, de-clutter some more. Remember you will be moving soon, so this is a great time to gather boxes and start packing.

Once all the clutter is removed take a look at the woodwork and moldings—they get scratched and collect lots of dust. Painting the woodwork a bright white really makes it POP! Next, clean, clean, clean. Yes, it’s a pain, but again, it reflects how you have kept and maintained your home. In kitchens, keep counters clear of unnecessary appliances, sinks clean, shiny and clear of dishes. ,In bedrooms, beds should be made and closets organized. Make your whole home shine!

Yes, wallpaper was great in the near distance past, but if it is in any room other than a powder bathroom, it’s a dinosaur. Sorry, I am just the messenger. If it is pervasive and a bigger job than you can handle, you may want to consider a decorating allowance to the potential buyer.

If you follow these suggestions, you’re well on your way to setting your house above the competition!

Cynthia Dykes is a Realtor with Semonin Realtors of Louisville. She understands that buyers need to be matched with the perfect home and she negotiates the best possible contract for a win-win outcome. Cynthia provides guidance and assistance every step of the way. She is a member of the Louisville Board of Realtors, Kentucky Board of Realtors, National Board of Realtors, Home Builders Association of Louisville and a Certified Semonin New Construction Specialist.

There is so much that goes into a home buying decision. With Homearama 2007 starting in just a few short weeks, I know many people (hey guys… this means you!) are thinking about new home theater options or another cool technology that you might want to incorporate into your home.

Amy Hoack has put together a nice little piece called Top High-Tech Toys for Hip Homeowners. The article lists the “top 10 ‘must have’ technology trends for homes at the recent International Builders’ Show in Orlando, Fla.” Great stuff! It’s also good to know that as certain technologies become more mainstream prices drop, which is great for consumers.

Here in Louisville, many consider Ovation our local experts in the field of audio/video solutions for your home. I’m sure they’ll have a healthy presence at this year’s Homearama. BestBuy, Circuit City and hhgregg are also great places to shop and compare prices for home electronics.

Louisville generally doesn’t experience the highest highs nor the lowest lows, which generally makes for a more sane situation. On the housing front, today we learn:

Building permits for one- and two-family homes were up 10 percent in the Louisville metro area last month compared with May 2006, according to city records. The Home Builders Association of Louisville reported that the increase held up in surrounding counties as well. [link]

Sure, inventory is still quite high but builders are now working more new home starts because they expect an increase in the number of buyers over the next 12 months.

David Seiders, the national home builder’s chief economist, isn’t convinced and expects sales to drop even further nationally. What this basically says is that the “risky” lending practices that are hurting so many borrowers nationwide, aren’t snagging as many here in Louisville. And that’s good news for us!

It’s not just the wealthy who are buying second homes anymore. More and more baby boomers are working towards having a second home ready and waiting for their retirement years.

“The demand for second homes is big and growing,” said Joseph H. Badal, president and chief executive of Thornburg Mortgage in Santa Fe, N.M. “Baby boomers are feeding the second home buying now, and young families are also in the market.”

With rates being at such affordable levels, a second home isn’t out of the question for millions of Americans. But again, it’s about planning, setting a budget and then living by it.

The Realtors said the typical vacation home buyer was 44 years old, came from a household with a median annual income of $102,000 and purchased a property that was about 215 miles from his or her primary residence. Nearly 80 percent of buyers said they wanted to use their second homes for vacations or as family retreats, while nearly 30 percent saw their second homes as a primary residence in the future.

As I posted last week, true urban renewal is generally done for the greater good of the surrounding area. However, it can also be successful financially, at least if it’s done correctly. Here’s another CJ article highlighting the benefits of the concept. A commenter suggests they are referring to the Liberty Green project, where homes start at $180,000.

While I don’t agree with much of what the authors suggest, I will say that if the project offers the proper incentives for the end users, in this case the homeowners, reworking old property into new can be done quite successfully. Why? It’s the answer to, “What are the three most important attributes of real estate?” Location, location and location.

There’s so much to cover, rather than devote a post to each topic I thought I’d hit them all at once—bullet style. Let’s go!

1. New-home sales skyrocket in April
   “Builder optimism is much higher now than it was at the end of February.” I should think so!
2. Existing-home sales, prices decline
   Free market forces are forcing sellers to bring down prices to accommodate the large number of available homes.
3. Aslan Recognized in Affordable Housing Finance’s “Top 50”
   This Louisville-based development firm is turning some heads as they focus on “affordable housing projects” in the Southeast. This sector is often ignored because of the lower margins.
4. Habitat for Humanity due award
   The Louisville chapter has built 250 homes since it began. That’s incredible!
5. Urban areas see biggest gains in property value
   City planners understand about all the benefits of urban renewal, but I wonder if they knew that it could also be so profitable?
6. Habitat to seek new areas for its homes
   In my opinion, Louisville homebuyers are looking for more low-end housing choices and, as you might guess, that is Habitat’s specialty.

Here’s another look at the topic I wrote about last month—Comparing Home Improvements in Louisville with the Nation—but from the perspective of HGTV.

According to their research, a Minor Bathroom Remodel will return 102% on average, and earns the top spot in their rankings.

If anyone you know is considering a home improvement project (and who am I kidding… aren’t we all?) make sure to let them know about this information. Here at Louisville Homes Blog, we’re making an effort to provide valuable information and advice for all homeowners, even if you’re not ready to sell at this moment. Our family is now in our third home, so we’ve walked in your shoes and well understand the challenges you face!

Do you need to get your home looking its best? Better Homes and Garden comes to the rescue with not one, not two, but three pages of Cleaning Shortcuts to help you optimize your time and end up with great results.

Take some time to look around the Move.com website because there’s some great content there. I especially liked the Green By Design story. There are some great ideas for homeowners looking to be very environmentally-friendly.

There’s a growing trend towards smaller, less expensive houses here in Louisville.

“It seems like the trend is going back down to ranches and smaller homes,” Miles said “We are seeing people, as they get older, deciding, ‘I don’t want steps.’ We’re going to see that change our market a lot in the next 10 years.” [link]

This also is reflected in average home prices moving from $180,555 last year, to “$171,259 for Jefferson County permits issued in March and April.”

We look for this trend to continue, even as some retiring baby boomers choose to spend their retirement savings on higher-end homes in places like Prospect and Anchorage.

I culled through the official Realtor® yearly Making Home Improvements Pay report to see how Louisville compares with the nation. From the look of things, we more than hold our own.

Please note how similar items compare. For example, if you’re planning on replacing your home’s windows. Outside our state you’d be better off with some moderately priced wood windows (85.3% > 84.7%). However, here in Kentucky the upscale vinyl windows outperform the competition (93.9% > 84.9%).

It’s this kind of useful information that we’re looking to bring you each and every time we post. If you have any questions or topics you’d like us to cover, please let us know!

Costs Recouped

Louisville is certainly used to being the center of attention during the Derby season. Now, with the proposed Museum Plaza ready to break ground later this year, we’re getting some additional recognition from places like the Wall St. Journal.

World Architecture News.com is certainly paying attention. Others have even found the theoretical father of our proposed building design.

One thing is certain, this project, combined with the new arena project, will dramatically change our downtown skyline for the better.

If you want to stay on top of the news on Museum Plaza, head over their extremely well-done site at:

http://www.museumplaza.net/

Make sure to view the video clips!

With Derby right around the corner, what could possibly be worth the risk to rent your Louisville home to total strangers? How does $20,000 sound?

I assure you, that’s the exception rather than the rule, but there appears to be a very strong market for short-term rentals here in Louisville during the Derby season.

You have to hunt through the listings on craigslist.com to find possible rentals, but homeowners near Churchill Downs can expect to make well over $1000/week renting to tourists hitting Louisville for the Kentucky Derby.

What if your home isn’t close to the track? Never fear, just call out to the high-end clientèle. Take the Reserve Derby Grand, for instance. This 5-bedroom estate home with a view of the lake sleeps 12 people and is just a short drive (i.e. 25 miles) to the race track.

If this sounds interesting to you, keep in mind that you should certainly be careful what valuables you leave on the property while you’re away. It’s also a good idea to check with your insurance company to see if you might need additional coverage to your standard homeowners policy. But if you want to earn the big dollars of a vacation rental property, here in Louisville there’s no time like the Derby.

This property is hardly your typical piece of residential real estate. What an amazing story! First, the idea that a medieval stone castle was being built off a rural Kentucky stretch of highway is literally unique. Rex Martin started building the castle in 1969 but after divorcing from his wife never completed the building. So it’s been vacant ever since. We’re talking 30+ years.

Then the property suffered a fire in 2004. Authorities never learned if the fire was intentional or not.

Now we learn that the castle is being rebuilt! One rumor is that upon completion, the property will be opened up to public visitors, for a fee, of course.

For more information on this property, click here. [h/t More Than Derby]