Louisville & Bullitt County Real Estate

$8000 Tax Credit History

The current $8000 tax credit has been motivating first time home buyers to start looking for homes. However, there is one perceived problem with the program.  The money is not available until after closing.  This means buyers still have to come up with a minimum down payment of 3.5 %.  This requirement prevents many from taking advantage of the current market.

Kentucky recently addressed this issue by creating a $4500 Down Payment Assistance program through KHC.  Again, this excludes many Louisville area buyers because of income limitations. 

What the industry has been clamoring for is a change to allow buyers to take a loan against the $8000 tax credit and apply it towards the down payment.  (Note: It is still tax fraud to try to access the actual credit before closing). This change has been expected for a few weeks.  In fact, the National Association of Realtors (NAR) broke a story about it a few weeks ago.  Of course, the story turned out to be both premature and incorrect.

Today was the day though.  The BIG NEWS the market has been waiting on.  HUD announced portions of the $8000 tax credit could be monetized and applied towards closing costs. Hooray! Right?

The Devil is in the Details

Before you call your landlord and tell him where to stick it, let's look at the fine print.

1. This is true for FHA loans - No big deal.  This tends to be the best solution for first time home buyers with little to no cash anyway.
2. This money CANNOT be applied towards the 3.5% down payment requirement.  You still have to come up with this money. 
3. See # 2 --  It bears repeating.
4. You access the $8000 tax credit via a loan.  The LOAN will most likely have interest and fees associated.  While the FHA promises to monitor these fees / rates closely, be sure to shop around if you are interested in this program.

Read the full HUD Announcement

OOPS!

So, the change doesn't really solve the problem mentioned above.  Buyers still have to ante up a fairly significant stake to get into the game. 

The modification does provide options though.  You can use the money to buy down a rate, to negotiate a lower price from the seller (you no longer have to ask for closing costs), or to make a larger down payment.  Of course, you always have the option of not taking a 2nd loan and getting the full refund after you buy your new home.  Having choices is always better than not.  Your lender should be able to help you how to best use this money when you purchase your Louisville home.

Summary

In the Louisville area, this will help some people, but other programs will help more.  The $4500 Down Payment assistance programaddresses the primary problem.  RHF offers 100% loans in most areas of Spencer County, Shelby County, and Bullitt County including Shepherdsville and Mt Washington.  Of course, FHA still allows buyers to use gift money from parents, employers and other government organizations.

When you are ready to buy a home in Louisville or the surrounding areas, please call me (502) 921-3989 and I'll help you find a knowledgeable lender who can give you professional advice.

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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, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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Shepherdsville investors and first-time home buyers are coming out of the woodwork and snatching up homes.  With low interest rates, great selection and incentives for first time home buyers, the message has started to get out.  Now is a great time to buy Shepherdsville Homes!

I was contacted by a young couple early last week who were interested in seeing homes.  Due to his work schedule, Saturday turned out to be the best time to go looking.  Over the next few days, we emailed properties back and forth to confirm an itinerary. 

What was easy a few months ago, has suddenly become a little difficult.  Despite the fact they had only been looking for a couple of weeks, four of the seven properties they initially sent were pending.  During the course of the week, three other properties received offers.

When Saturday finally arrived, we had seven homes to see including one short sale and one foreclosure with offers that had been submitted but not approved.  I was very pleased at the condition of the homes we saw.  With the exception of the short sale and the bank-owned home, each was in pretty good shape.  Sellers in Shepherdsville seem to be in touch with the market conditions as well.  

The flurry of activity didn't stop long enough for us to even finish our tour.  While we were out, a listing agent called to tell me her clients just received a contract.

If you are considering buying a Shepherdsville Home, I suggest you get serious.  While sales have been soft for the first few months of the year, there are signs the market is improving.  Call a lender, get pre-approved and let's find your dream home.  If you would like, I'd be more than happy to refer you to a reputable lender.

Search for Shepherdsville Homes

Search the entire Louisville MLS

Programs available to First Time Home Buyers in Shepherdsville 

• $4500 Down-Payment Assistance

• $8000 Tax Credit

Related Links

• Jack be Nimble, Jack be Quick- Act quickly if you want to buy an REO home.
• How to buy a Foreclosure 
• Why you should buy an investment home now
• Shepherdsville Real Estate Market Report 

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Erik Hitzelberger is a licensed REALTOR 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: 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 Shepherdsville Homes 

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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. The average sales price of Shepherdsville homes is about 10% below last year.  This does not necessarily reflect depreciation of homes.  Instead it is driven by investors buying short sales or foreclosures and first-time home buyers taking advantage of the $8000 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.  When you are ready to sell, find a knowledgeable Bullitt County Real Estate Agent who can help you price, prepare, and promote your home.

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

First Time Home Buyer Tax Credits for Shepherdsville Home Buyers

$8000 Tax Credit - Get an $8000 Tax Credit on your 2008 or 2009 Tax return when you buy a home.

$4500 Down Payment Assistance - Get Down payment Assistance money through KHC.

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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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Bennett Chef once famously bet Theodor Geisel $50 he could not write a book using only 50 different words.  With apologies to Geisel, aka Dr. Seuss, I attempted to answer the above question in that spirit.

In case you don't know, Seuss not only successfully won the bet, but "Green Eggs and Ham" is one of the  Best Selling Children's Books of all-time. 

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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, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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Whenever I work around the house, my daughter wants to assist.  She particularly likes to paint.   On occasion, reason gives way and I allow her to do so.  While she means well, her "help" often costs me time if not time and money.  In general, making her happy is worth the additional effort and expense. 

Obviously, there are certain things where her help would be really detrimental. Where the complexity or intricacy of the work is too involved or dangerous, her help becomes a liability.  If I don't know how to do something, she may offer a suggestion, but it isn't generally advice I'm going to heed.  When I need help for these type projects, I want an expert.  

When you buy a house, everyone from your parents to your friends to your college roommate's Aunt Sally wants to help.  Some will merely offer advice.  Others will tell you ‘how to get the best deal.'  A few may even want to come with you so they can make sure you aren't getting hosed.  Like my daughter, they have great intentions.  Your loved ones want to make sure you are protected.  Unfortunately, their ‘help' can also be costly. 

Each home purchase or sale is a unique and complicated transaction where thousands of dollars can be lost easily.  Every market, city, and neighborhood is different.  Some homes are appreciating others are not.  You need to know which is which.  Termites and Radon are both problems in Louisville.  You need someone to recommend proper inspections.  The Kentucky Sales Contract is different from the one in Michigan or Texas or wherever the heck Aunt Sally lives.  You need someone to explain it properly.  Negotiations can be emotional.  You need someone on your side who will be logical.

In short, you need a local real estate expert.  You need someone who knows the Louisville market, who knows the issues facing buyers and sellers, and, most importantly, who knows how to overcome those issues while keeping money in your pocket.  There is a really good chance the person who is buying your home or selling you theirs has professional representation.  Do you really want to go at it alone?

I am not saying you should exclude anyone.  If Mom, Dad and your Verizon network want to tag along, great.  I have no doubt that they are intelligent people with keen insights.  But when it comes time to make a decision and move forward, please remember you hired me for my knowledge and expertise.  Don't let it go to waste or it just may cost you.

Speaking of saving money, check out these programs for first time home buyers...

• $4500 Down Payment Assistance
• $8000 Tax Credit

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Erik Hitzelberger is a licensed REALTOR 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: 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 Estateor to Search for Louisville Homes 

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 Get Louisville Real Estate News by Email  

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.

Search for Bulllitt County Homes

Key Points

1. After a month which saw a lot of lower-priced homes sell to firsst-time home buyers and investors, the market returned to what seems to be the 2009 average.  While sales remain soft, price and key ratios remain intact.  In general Bullitt County home prices remain stable.  This is not an area in decline nor are many neighborhoods seeing significant appreciation.  Both buyers and sellers should take this into consideration.  
2. Recent legislation allows first time home buyers to get $4500 down payment assistance from the state.  When combined with the $8000 first-time home buyer tax credit, 11 months of inventory and historically low interest rates, it is hard to imagine a better opportunity for buying.   
3. Sellers need to be realistic when pricing your home.  With this much competition, you are better off not listing than throwing out a high price and hoping some unsuspecting buyer will come along.  Even if you do get a bite, the house will likely not appraise.  Find a knowledgeable Bullitt County Real Estate Agent who can help you price, prepare, and promote your home.  By following these 3 steps, I sold my Shepherdsville home in 11 days.

Other Market Reports

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

First Time Home Buyer Tax Credits for Bullitt County Home Buyers

$8000 Tax Credit - Get an $8000 Tax Credit on your 2008 or 2009 Tax return when you buy a home.

$4500 Down Payment Assistance - Get Down payment Assistance money through KHC.

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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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 Get Louisville Real Estate News by Email  

First-time home buyers who obtain a KHC (Kentucky Housing Corporation) home loan will be eligible for $4,500 towards down payment and closing costs.  The program was announced recently by Governor Steve Beshear and is effective May 1, 2009 - November 30, 2009.  Unlike the $8000 first-time home buyer tax credit offered by the federal government, this is a loan.  However, the terms are very favorable and the money is provided at the closing. 

Plan Highlights

• The loan is in the form of a second mortgage on the home.
• Principle and Interest payments are deferred until July 1, 2010.
• The loan is repaid based on a 10-year amortization schedule at 6%.
• If you repay the loan by July 1, 2010, $300 will be forgiven. 

Let's consider how to best use this loan in conjunction with the $8000 tax credit for an FHA loan. 

1. Purchase a house before November 30th.  (Remember it takes 4-6 weeks to close so you need an accepted offer by mid September).
2. Use the $4,500 to help pay the 3.5% downpament requirement from FHA.
3. File for the $8000 tax credit with your 2009 taxes.
4. Repay the KHC Down Payment Assistance loan before July 1st and save an additional $300.

If you follow these steps, you will have $3,800 cash and equity in your new home by next summer.  Further, you will have little to no out-of-pocket expenses beyond inspections and partial closing costs. 

If you are looking for a home in Shepherdsville, Mt Washington, Taylorsville, or Shelbyville, the deal can be even better.  Rural Housing Service (RHS) loans do not require a down payment and do not have monthly mortgage insurance payments.  In this case, the $4500 should easily cover all closing costs.

Requirements

1. First-time Home Buyer
2. Meet KHC Income and Purchase Price Guidelines
3. Minimum Credit Score - 620

4. Use a KHC approved lender

Ready to get started?

Search for Louisville Homes (Includes the entire metro-area)

Contact a Louisville Real Estate Agent

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Erik Hitzelberger is a licensed REALTOR 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: 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 Estateor to Search for Louisville Homes 

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 Get Louisville Real Estate News by Email  

You want the best deal on an REO home in Louisville?  Act like Jack.

Be Nimble

Real Estate investing is not like dating.  You do not want to get emotionally attached.  This is a financial transaction only.  If the numbers do not make sense, walk away and find a different home.   

Be Quick

Louisville foreclosures sell quickly.  Multiple offers are common within days if not hours.  Some investors even submit bids sight unseen in hopes of getting lucky.  (In general, this is not a good strategy).  To get the best deal, you have to be prepared.

Search for Louisville Homes

Pre-approval is critical.  Banks won't accept offers without pre-approval letters and you don't have time to get pre-approved after you find the house.  Do it now.

Knowledge is power.  The more you know, the better your chances of getting the best deal.  Learn home prices in your area.  Spend a few hours at a hardware store studying material prices.  Call contractors and get estimates based on $/sq ft.  Most importantly, find a Louisville real estate agent who has bought - sold and/or rented investment properties.  By knowing the expected sale or rental price as well as the estimated cost of repairs, etc, you can make an offer quickly and confidently.

Don't Get Burned

You are not just trying to jump over a candlestick.  Buying investment homes can be challenging and more than a little intimidating.  You are putting a large amount of money at risk on the hope of earning a good return.  A good real estate agent will help protect your interests.

Don't Wait Until the Flame Dies

Now is a terrific time to buy an investment home.  Foreclosures, short sales, and tightening lending standards have converted would-be homeowners to renters for some time.  Increased demand will raise rental rates. At the same-time low interest rates and tax credits are driving some people to buy homes.  Most buyers (especially first time home buyers) want new or updated homes.  You can offer that with an investment property.

If you wait until the ‘market recovers,' you will miss the best deals.  The risk will decrease, but so will the potential reward.  Don't let fear paralyze you.  When you are ready to seize this opportunity, call me (502-921-3989) and I'll help you get started.

See Also: Why you Should Buy a Louisville Investment Home

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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: Jeffersontown (J-Town), Middletown, 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 

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Get Louisville Real Estate News by Email

Much ado seems to be made about the final rose ceremony on TVs glorified dating game "The Bachelor."  As I understand the show, 25 women compete for the love of a man they just met and are eliminated one-by-one until 2 remain.  Using all the tools Hollywood has to offer, the producers make the final selection a spectacle unto itself.  Sounds interesting...or not.  If you want true drama, you should tune in on the first Saturday of May and watch 20 competitors vie for "The Garland of Roses."  I assure you the power, the grace, and the strategy seen at the Kentucky Derby are unparalleled in the world of 'Reality TV.'  This year I took a few minutes to see the garland being made and at the same time learned a little history regarding the flower's association with the race.   

As a bit of trivia, the rose first became associated with the Derby via a party.  Ladies were each presented a rose at a Louisville Derby gathering.  Upon seeing the sensation this caused, Colonel M. Lewis Clark, founder of Churchill Downs and the Kentucky Derby, made the rose the official flower of the race.  (What single gentleman wouldn't?)

Over the years, the tradition evolved and grew.  The winning rider's were given Jockey's Bouquets of roses.  In 1925, the Kentucky Derby was dubbed, "The Run for the Roses" by a New York sports columnist.  Finally, in 1932, the first garland was commissioned.  Grace Walker designed the initial blanket of roses at the behest of Churchill Downs official Samual Culbertson.  The garland made this past week is substantially similar to Ms. Walker's version 77 years ago.

Friday night a team of Kroger Master Designers gathered at the Middletown Kroger to prepare "The Garland of Roses" for the winner of the 135th Kentucky Derby.  They worked tirelessly into the evening while hand sewing over 400 roses to the backing.  When finished, the blanket is over 10 feet long, 22 inches wide and weighs almost 40 lbs. 

Of the many features, the Crown is the most poignant.  This centerpiece is constructed of 21 roses.  Each of the race participants is represented by one of the 20 flowers surrounding the single upward-facing rose.  The center rose represents the struggle and heart necessary to earn the right to wear this blanket.

Unlike the pseudo-real complexities of The Bachelor, The Kentucky Derby is stunningly simple in it's construction.  The call to the post is trumpeted.  The crowd sings, "My Old Kentucky Home" as the competitors walk in front of the grandstands and then head back to the final turn.  Upon arrival, the thoroughbreds are loaded into the starting gate.  A brief moment of silence follows as 150,000 plus collectively inhale.  Then, the gates fly open and the great beasts surge forward. 

Over a mile and a quarter,

    they run for the jockeys on their backs,

         they run for the ghosts of those who came before,

             they run for Secretariat's otherworldly 1:58 2/5,

                  they run for immortality,

                       they Run for the Roses. 

At the end, there are no questions, there are no doubts, there is simply a Rose Ceremony.

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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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