Louisville & Bullitt County Real Estate

So, you finally decided to buy a Louisville home.  Chances are everyone from your parents to your coworkers to your cousin's roommate's great-aunt Myrtle told you to buy a foreclosure and get a "great deal."  You have listened to the national news and heard you can get a home for pennies on the dollar.  You are now ready to go out and steal a home from a desperate bank.  Before you get in the car, scan through this list of Don'ts and make sure you are really ready.

Don't Ignore Reality

Let me save you some time and effort at this point.  First, real estate is local.  In fact, it is hyper-local and the reality of the Louisville market is foreclosures exist, but steals are very hard (read: nearly impossible) to find.  You could express the selling price to value ratio in terms or pennies on the dollars, but it would be much quicker to use 3 quarters and a dime or two.

Don't Despair

Knowing this, you are ahead of many buyers.  Better yet, while they are wasting time making ridiculous offers that aren't even being considered, you will be doing the things that will give you the best possible chance of finding a deal.

Don't be a Masochist

Unless you enjoy rejection, the first step to successfully buying a Louisville foreclosure is getting pre-approved.  Banks want to sell their properties quickly.  This means they won't even consider accepting a contract where the buyer may not be capable of getting a loan.  Some banks will even require you to be pre-approved by their office before submitting the offer.  Getting this step taken care of will take a day or two at the front end, but save you tremendous grief later.

Don't Hesitate

Hundreds if not thousands of other buyers are sitting on the sidelines with the same game plan as you.  Amongst this crowd is a number of investors who are throwing out offers on every Real Estate Owned (REO) home that hits the market.  On the best values, multiple offers occur within hours.  If you find a home that fulfills your needs and wants and your real estate agent tells you it is a bargain, make an offer.   Too many buyers try to look for greener pastures and lose out.

Don't focus solely on Price

Understand banks want strong offers.  If you want the best possible price, give the bank everything else.

•1)      Make a sizable (1.5-2%) good faith deposit

•2)      Agree to close in 30 days or less. (Pre-approval helps here)

•3)      Agree not to ask for repairs. (You are buying the house as-is anyway)

•4)      Do not make ridiculous requests.  (They are not going to throw-in a stove.)

Don't be (too) Greedy

Despite wanting to get rid of the REO home, the bank is still a for-profit entity.  They understand the value of the home and are not anxious to give it away.  Most likely, the list price is 5-10% below market value.  Requesting an additional 20% is generally not going to fly.  In fact, the best-priced Louisville REOs often go for higher than list price.  When you find a home you want to live in and it is a good deal, make a serious offer. 

Don't forget inspections

Just because you are buying the home as-is, doesn't mean you shouldn't have it inspected.  Since the seller has never occupied the property, he/she is not obligated to complete the Seller's Disclosure Form.  Without a professional home inspection, you are putting yourself in jeopardy.  The Louisville Sales Contract and most bank contracts do allow for an inspection period.  Each also permits you to walk-away if major problems are discovered.  Take advantage of this clause.

Don't Delay

Most bank contracts have a "Time is of the Essence Clause."  If you sift through the legal jargon, this paragraph says that if you cause the closing to be delayed, you have to pay an outrageous penalty ($100/day is typical).  So, make sure all documents are accurate and submitted quickly.  By the way, if the bank fails to close on time (and they probably will), you do not get any allowances for your inconvenience. 

Don't try this Alone

Buying an REO property is more risky than buying a home from traditional sellers.  A Louisville real estate agent will can help you

1. Find homes as soon as the come on the market so you can beat others to the table,
2. Verify the price is a value,
3. Help you find a lender who offers the best loan program for a particular home,
4. Write a strong offer while preserving that value,
5. Arrange an inspection,
6. Negotiate repairs,*
7. Make sure you get to the closing table without penalties, and
8. Insure the whole process is as painless as possible.

*Despite the as-is clause I have been able to successfully negotiate repairs and or credits for major items such as termites, storm damage, etc.   Oh yeah, the best part is my services don't cost you a thing. 

Now that you are prepared, give me a call (502-921-3989) and we'll review your needs and wants to determine whether buying a foreclosure is the right thing for you. 

Search for Louisville Homes

See Also

$8000 Tax Credit

Louisville Investment Homes; Why you should buy one now

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estateor to Search for Louisville Homes

The 2009 Kentucky Derby Festival Balloon Glow was a stunning success.  We were among the thousands of people who gathered at the fairgrounds Friday evening to watch the Hot Air balloon teams light up the night sky.  The high winds that had threatened to prevent people from going on to the fields died down around nightfall.  We were able to walk around and see the balloons up close.  

We arrived early and staked out prime viewing territory against the fence while sampling some of the food.  My wife and I are suckers for funnel cakes, so we definitely had to indulge.  Fortunately, there was an on-site mortgage broker accepting loan applications.  I should have dinner and that funnel cake paid off in just under 5 years. 

As daylight turned to dusk, the balloon teams began unpacking and unrolling their vessels.  The process of inflating the balloons was complicated by the winds, but almost all of the crews were able to persevere.  Both the crowd and the level of anticipation seemed to increase exponentially over a 30-minute period.  

Around 9:00 the last of the ballons was fully inflated and the crowd was rewarded for their patience.  With a warning to extinguish all cigarettes we were free to enter the field.  We wandered around as the kids stared in amazement at each of the nylon airships.

We left around 10, but many people were still arriving.  The event continued long into the evening while Q103.1 provided music and commentary.

All-in-all, this is a great family event and I recommend checking it out in the future.  US Bank sponsored the event and other than the cost to park, entrance was free with a Pegasus Pin. 

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, and Brooks.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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Louisville's Dare to Care hosted their 11th annual Taste of Derby Festival last night at Slugger Field.  At the last minute (literally) my wife and I decided to attend.  I really had no idea what to expect, but was blown-away by the event.  From the food and drinks to the items donated for silent auction, this was a first-class event that earned itself an annual placement on our calendar.

Almost 40 restaurants showed up and prepared sample dishes for the crowd.  I not sure we made it to each booth, but we came close.  Morton's The Steakhousedefinitely gets the nod for best of the best.  Their steaks and crab-cakes were incredible.  Besides, watching them carry steaks from the grill to their table was a bit like watching the Pied Piper.  People would stop talking in mid-sentence and follow the steaks.  I was also very impressed by the Bonefish Grille (shrimp), Jeff Ruby's Steakhouse (Soup/Chowder).  For fun, Krispy Kreme setup a booth and let individuals dip doughnuts into chocolate. 

In addition to the restaurants, dozens of breweries, distilleries, and distributors showed-up with unique offerings.  Four Roses had a single-barrel bourbon that was incredibly smooth.  Old Forestor and Equus Run Vineyards had commemorative Derby 135 bottles.  And local brewers showed up with products that all put Anheiser-Busch to shame.  Whether you wanted beer, wine, bourbon, tequila, or vodka, someone had a unique drink that would quench your thirst.

And last, but not least was the silent auction.  From Southwest Airline tickets to Golf clubs to Brown-Foreman gift baskets to Derby Hats to Kroger gift cards there was something for everyone.  I was outbid for a night at the Galt House, but did manage to buy a Bouncer rental.  This will come in useful at my kid's birthday party next month. 

I strongly encourage everyone to add this event to their Derby festivities calendars.  You will be able to enjoy great food and drink plus support a worthy cause. 

Dare to Care is a local non-profit agency formed in 1971 to combat hunger in Louisville.  Their mission is "to end hunger through partnerships, innovative programs, and community engagement."  In 2007, they distributed over 10 million pounds of food to needy families. To donate, click the following link.  Lend-A-Hand.

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliancein Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estateor to Search for Louisville Homes

In the last two months, I have shown almost 100 Louisville homes.  For the most part, I enjoy the experience.  I definitely like working with buyers and helping them figure out and then find exactly what they are looking for.  Additionally, I like touring homes and I love seeing the excitement on buyer's faces when they find ‘the one.'  In fact, the only thing that I really don't like about the process is completing automated feedback forms. 

First, let me state that I am a huge fan of technology and an even bigger fan of automated systems that add value and save time.  From my computer, I can and do order pizza, watch TV shows, have pictures of my kids developed and sent to their grandparents (or the nearest Wal-Mart), purchase supplies, pay bills, and a host of other things.  I consider these things beneficial because time is the resource I value most.  

Second, I am more than willing to speak with any agent who calls me seeking feedback.  I will answer as many questions as they have so long as the questions do not interfere with or lessen my client's position.  Often, the conversation can be valuable as it is a good way to resolve issues both real and perceived.  On a recent showing the buyers liked the house, but it backed up to a road and the 4' privacy fence was not sufficient to block the sight of traffic.  I mentioned this to the Listing Agent and she had the owners petition the HOA and get approval for an 8' fence along the back.  While we ultimately found something else, this action moved the property into the number 2 spot on the list.  I considered the conversation beneficial.          

On the other hand, if a listing agent is not willing to take the time to call, I am no longer willing to fill out ridiculous forms that appear in my email.  Further, I am certainly not going to print out a form, fill it out and fax it back to his/her office.  This has no benefit to me or my client and, frankly, I don't see how..

Is this house priced

• a)      Too high
• b)      Correctly
• c)      Too low

is very helpful to the listing agent or his/her client either.  If you don't know why I think the price is off or by how much, what are you going to do to remedy the problem?  Pointing to a form a saying, "this agent says your home is priced too high, we should therefore reduce it by $10,000" is neither logical nor helpful. 

In summary, do yourself and your clients a favor and STOP USING AUTOMATED FEEDBACK FORMS.  Just because a technology exists doesn't mean that it is good. 

If you are considering selling your Louisville home, I assure you that I will work hard to make sure your home is well prepared, priced, and promoted when it goes on the market.  However, I am not perfect.  Therefore, I do follow-up with buyer's agents to 1) make sure they do not have lingering questions and 2) that the price and condition of the home are appropriate.   Call me (502) 921-3989 and we'll discuss the other services that I offer as your Louisville Real Estate Agent.

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliancein Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estateor to Search for Louisville Homes.

While the local housing market has not suffered to the extent of other areas, Louisville investors still have a tremendous opportunity to take advantage of the current situation.  By purchasing investment homes now, a saavy individual can set himself or herself up with solid returns for years to come.  Four factors are particularly favorable for investors right now.  These include 1) an increased supply of homes, 2) an increased demand for rental homes, 3) low interest rates and 4) oncoming inflation.  

"Be fearful when others are greedy and be greedy only when others are fearful." ---Warren Buffett

Despite low interest rates, abundant selection and $8000 first-time home buyer tax credit, many buyers are afraid to take action.  Their paralysis has caused a small glut of homes in virtually every price range and area of Louisville.  In Jefferson and Bullitt County, there are 4640 and 586 homes for sale respectively.  March sales were 471 and 61.  A balanced real estate market has 6 months of inventory, we have 9+.  The excess represents opportunity.

The economy is creating renters.  The last couple of years has seen a drastic increase in the number of Louisville households that have filed bankruptcy, sold their homes as a short sale or lost their properties in foreclosure.  Under current lending standards, most of these people will be renters for the next five years.  Additionally, a significant amount of people have credit scores which either no longer permit them to buy a home or have priced them out of the market.  As callous as it may sound, their loss is your gain.  Higher demand for rental properties means higher occupancy and rental rates.

Investment property interest rates are currently below the rates that many have their principal residences financed.  Lower rates mean lower mortgage payments.  Lower mortgage payments mean more cash flow.  If you thought you had to pass that on, reread the previous paragraph. 

Sooner or later, inflation is going to read its ugly head.  The US Treasury hard-wired the printing presses in the on-position about 9 months ago and hasn't really checked on them since.  When the time comes to deal with this demon, rest assured interest rates will rise.  Besides feeling like a genius for buying when rates were low, you will have the added benefit of a larger rental pool as potential buyers are priced out of the market.

With these four factors working for you, the time is definitely right to buy an investment home.  I monitor investment grade homes on a regular basis.  Call me (502) 921-3989 and I'll help you get started.  

Click the link to search the MLS for Louisville Homes

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliancein Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes.

In the last few weeks, I have sold 3 of my listings and have 1 under contract.  In addition, I have helped buyers find some great homes at very fair prices.  While area sales are still down compared to past years; homes that are Priced correctly, Prepared well and Promoted properly are selling.  Look at the stats below and decide for yourself whether the Louisville real estate market is healthy.

4-Bedroom Mt Washington Home

One of the best values in Mt Washington, this home also offered a finished basement, huge deck, and good-sized yard.  The buyers moved from a condo in Louisville and were thrilled to find something large enough to suit their needs at an affordable price.

• DOM 70
• SP/LP = 98.6%

5 Bedroom Home in Lagrange

Unfortunately, this Oldham County home hit the market about 2 weeks before the economic collapse last fall.  However, features such as the large kitchen, basement, outbuilding and acreage soon brought buyers back.  Ultimately, the sellers were rewarded for their patience.  After rejecting a couple of low-ball offer, they accepted a full-price offer at the end of January.  The contract took a little longer than normal, but the deal is now closed.

• DOM 139
• SP/LP = 97.8% to Original List Price

3 Bedroom Home in Shepherdsville

I was particularly interested in the sale of this house as it was my personal home.  I detailed the sale of  in previous posts, so I won't repeat myself here.  However, I assure you that my clients were happy with the results :).

• DOM: 11
• SP/LP = 96.8%

If you are ready to sell your home, make sure that you choose a listing agent who is well-versed in marketing Louisville homes online.  If you look at how I list my Louisville Homes, you'll see a diverse range of websites.  What you may not see is that I can track how many people click through a listing site to view the virtual tour.  One of the most important statistics is 30% of buyers who view the tour arrive there from a site not fed by the MLS. 

Remember, 87% of Buyers search for homes online, yet on the MLS....

• Over 20% only have 1 picture
• Over 80% do not have a Virtual Tour

Your home is your most-valued material possession.  Don't you want a Louisville real estate agent who will market it properly?

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes. 

Continued from Negotiating the Offer

Once the repair request is successfully negotiated the rest of the home selling process involves completing tasks in an orderly manner and dodging landmines.  In our case, we were moving into a small investment property while we continued to search for a new home.  This involved a little more planning as we had to determine which of our belongings we were taking and which went to storage.  Goodwill and Eco-tech also received their fair share. 

The agent is generally responsible for defusing the mines or taking the brunt of the impact.  Fortunately, we barely encountered a hiccup after the negotiations.  The buyer's agent was on top of her game and made sure the buyers completed all their necessary tasks.  I had to kick my clients in the tail every once in awhile, but they too got everything done :).   

The closing was drawn-out, but anti-climactic.  Our 5:00p start time slowly slippped to 6:30p as funds were transferred and papers were corrected.  The burden of keeping our twins from bouncing off the walls was relieved by Youtube videos of Tom and Jerry as the iPhone continued its rapid ascent up my list of Greatest Technological Achievements of All-Time. 

At the end, we signed forms, they signed forms, we all shook hands and they left with the keys.  Due to the relatively late finish, our celebratory meal was Chick-fil-A to go.  Oh well.  It is sort of a bittersweet event anyway.  We have a lot of good memories from that house, but it was time for something new. Hopefully, the buyers will love it as much as we did. 

In a few weeks we will close on our new home and start a new chapter of our lives.  

Final Results

• Days of Preparation: 14
• Days on Market: 11
• Days under contract: 35
• LP/SP: 96.8%

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliance in Louisville. If you need a Bullitt County Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or Search for Shepherdsville Homes or Search the entire Louisville MLS.

Mt Washington, KY Real Estate Market Report- This report analyzes property sales trends for Mt Washington homes over the last few months and versus the same time period last year.  The report includes number of Mt Washington homes sold, average listing price, average sales price, days on market (DOM), and current inventory.

Search for Mt Washington Homes  or search the entire Louisville MLS

Key Points

1. Obviously, lower -priced Mt Washington homes made up the bulk of the sales in March.  This is driven by investors and those taking advantage of the $8000 first-time home buyer tax credit.
2. Average Days on Market is significantly lower than previous months or years.  Again, investors and first-time home buyers are driving a lot of this.  If you find a house you like, don't expect it to stay on the market long.
3. While buyers are looking for Mt Washington homes, sellers need to be realistic if they expect a sale.  Pricing, Preparation, and Promotion are key to accomplishing that goal.  Call me (502)-921-3989 and I'll explain how I can help.   

More Market Reports:

Bullitt County Homes

Shepherdsville Homes

Louisville Homes - Area 7 - Ferncreek, Jeffersontown (J-Town)

Louisville Homes - Area 8 - Douglass Hills, Hurstbourne, Middletown

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliance in Louisville. If you need a Mt Washington Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Mt Washington Homes. 

Shepherdsville Real Estate Market Report- This report analyzes property sales trends for Shepherdsville homes over the last few months and versus the same time period last year.  The report includes number of Shepherdsville homes sold, average listing price, average sales price, days on market (DOM), and current inventory.

The MLS includes properties for sale in Fox Chase, Hebron Estates, Hillview, Hunter's Hollow, Pioneer Village and Zoneton as Shepherdsville homes.

Search for Shepherdsville Homes

Key Points

1. Average price is significantly below last year.  This is driven by investors and those taking advantage of the $8000 first-time home buyer tax credit.
2. Average Days on Market is significantly lower than previous months or years.  Again, investors and first-time home buyers are driving a lot of this.  If you find a house you like, don't expect it to stay on the market long.
3. Shepherdsville sellers have to be realistic about comparable home sales in your neighborhoods.  While most homes are holding their value, few are appreciating at any significant pace.

More Market Reports:

Bullitt County Homes

Mt Washington Homes

Louisville Homes - Area 7 - Ferncreek, Jeffersontown (J-Town)

Louisville Homes - Area 8 - Douglass Hills, Hurstbourne, Middletown

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliance in Louisville. If you need a Shepherdsville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Shepherdsville Homes. 

Bullitt County Real Estate Market Report- This report analyzes property sales trends for Bullitt County homes over the last few months and versus the same time period last year.  The report includes number of Bullitt County homes sold, average listing price, average sales price, days on market (DOM), and current inventory.

Bullitt County encompasses the primary cities of Shepherdsville, Mt Washington, and Lebanon Junction.  Home sales from the smaller cities of Brooks, Fox Chase, Hebron Estates, Hillview, Hunter's Hollow, Pioneer Village and Zoneton are also included, but these are generally listed as Shepherdsville homes in the MLS.

Key Points

1. Average price is significantly below last year.  This is driven by investors and those taking advantage of the $8000 first-time home buyer tax credit.
2. Average Days on Market is significantly lower than previous months or years.  Again, investors and first-time home buyers are driving a lot of this.  If you find a house you like, don't expect it to stay on the market long.
3. Inventory is still high, but is not unreasonable.

Buyers

You still have a great opportunity to create your own success story and get a great deal on a Bullitt County Home.  The combination of historically low interest rates and flat prices means your payments are lower than they would have been last year. 

1. get serious,
2. get pre-approved, and
3. find a good Bullitt County Real Estate agent.

Sellers

If you are serious about selling your home, now is the time to get it on the market.  Buyers are definitely out and about.  If you want to sell, you need to

1. price your Bullitt County Home to sell,
2. prepare your house for sale, and
3. find an agent who can promote your Bullit County home properly.   

By following these 3 steps, I sold my Shepherdsville home in 11 days last month.

Other Market Reports

• Mt Washington Real Estate
• Shepherdsville Real Estate
• Louisville Homes - Area 7 - FernCreek, Hikes Point, J-Town
• Louisville Homes - Area 8 - Douglass Hills, Hurstbourne, Middletown

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Bullitt County Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Bullitt County Homes 

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