McCracken County Courthouse Auction

• 811 LEVIN ST
• 115 HIGHLAND CIR
• 6135 CLINTON RD
• 5565 OAKS RD
• 125 WILDCAT TRACE
• 405 S. 21st ST,
• 105 LEBANON CHURCH RD
• 732 N 26th ST
• 130 SUMMIT DR
• 419 FOUNTAIN AVE
• 720 S 11th ST
• 4015 HOBBS RD
• 7250 BLANDVILLE RD
• 359 RHEA LEE DR
• 186 FISHER BLVD
• 120 RIVERSIDE DR
• 8735 MOORE RD
• 2817 OHIO ST

$100 Down Home

Buy a HUD Home For $100 Down

Seller's Disclosures

McCracken County Courthouse Auction

• 933 NORTH 24TH STREET
• 8140 OGDEN LANDING RD
• 403 S. 19TH ST
• 2915 ALABAMA ST
• 4403 BENTON RD
• 521 N. 7TH ST
• 195 HARTING RIDGE RD
• 3840 LOVE LACEVILLE RD
• 1101 MARKHAM AVE
• 2160 LANE RD

McCracken County Courthouse Auction

• 8105 LOVELACEVILLE RD
• 1106 GREER ST
• 3825 KINGSWAY DRIVE
• 6220 CONNIE SUE AVE
• 720 S 11th ST

Neighborhood Home

McCracken County Courthouse Auction

• 1132 PARK AVE
• 5135 COLD SPRINGS RD
• 3055 IRVIN COBB DR
• 3670 HARDMONEY RD
• 2601 OHIO ST
• 5820 OAKHAVEN DR
• 2925 MCKENDREE CHURCH RD
• 2953 CLAY ST
• 130 SUMMIT DR
• 7545 OLD CAIRO RD
• 1109 MARKHAM AVE
• 1420 PARK AVE

Low, Low Interest Rates!

June 2011 McCracken County Courthouse Sale

Is it rude to bring a Realtor to look at a for sale by owner?

Home Inspection

During most real estate transactions the home inspection is typically the most worrisome part of the transaction. Buyers want a home free of flaws and sellers believe the home is in good condition. For the realtor(s) involved the home inspection is "make it or break it" time.

At the appropriate point in the contract I explain the 3 options the buyer and seller have after the inspection is completed. Most inspections will find several items that could be corrected. The inspection report will usually list them as minor or major. Items could be as simple as a leaky fossett to major such as a leaky roof.

The typical cost for a home inspection ranges from $250 - $400. Many of the home inspectors will also perform a termite inspection will. The results of the termite inspection may be on a seperate document.

Anyway, the point of this blog entry is the three options so here they are...

McCracken County Courthouse Sale

The following properties will be auctioned at the McCracken County courthouse on June 6 at 1:30pm. Normally, the sale is held the last Monday of each month and the newspaper notice is placed the second Friday. For some reason this process was delayed this month.

• 1108-1110-1112 MADISON ST
• 240 LOCKE BLVD
• 120 KEENELAND CT
• 195 HARTING RIDGE
• 5437 SHELLDRAKE LN
• 720 S 11th ST
• 2700 TENNESSEE ST
• ROYALL INN, 2150 IRVIN COBB DR
• 225 RIEGEL LN
• 304 HERMAN ST
• 900 LORINE LN
• 823 N 26TH ST
• 480 OAKLAND CIRCLE
• 270 FRIEDMAN AVE

Offers

As a Realtor we often find it difficult getting potential buyers to make offers on a home. Sometimes the buyer may believe the asking price is firm or the price is too much. When a buyer mentions making an offer on a home we try to talk more about making an offer. As you can understand you can't purchase a home without making an offer. Much of the time the buyer and seller can come to an agreement on the details. The Realtors involved merely make recommendations to their client and complete the paperwork along the way. The Realtor(s) doesn't make the decisions for the buyer or seller.

On another topic I recently spoke with a gentleman who buy homes to rent out. He has many properties for rent. He told me about an older woman in town that wanted to sell her nice home in a nice neighborhood for a fraction of its worth. Her reasoning was she wanted to sell it quick and avoid the Realtors. The person obviously didn't need the money or have a mortgage on the home as she was practivally giving it away.

The home will likely rent for about $1,500 per month. I often view an individual's options for selling a home in this order...

Rental homes

As expected, existing home sales in March were up. This is due largely to the return of warmer weather as is the case each spring. Another factor that helps the home buying season is tax refund time. Americans' tax refunds assist with the closing costs and down payments of purchasing a home.

Notice in the previous paragraph I said "existing home sales". This does not include new homes. These are a different set of statistics. Existing home sales statistics come from Realtors, like me. These are homes that have sold. The new home sales statistics come from the builders across the country. These are not necessarily homes that have sold because some of those new home sales don't actually go to closing. New home sales are important because they reflect the condition of the home building industry. This is a fraction of the overall American economy. This statistic reflects how much material and labor is being used by contractors and suppliers like Lowes and Home Depot.

References:

McCracken County Courthouse Sale

The following properties will be auctioned at the McCracken County courthouse on April 25.

• 1110 MALLORY ST
• 914 JEFFERSON ST
• 2728 CLARK ST,
• 651 N 42ND ST
• 129 KIMBERLY DR
• 7612 BENTON RD
• 1109 MARKHAM

Rental homes

I get calls asking about rental homes pretty frequently. I am unable to provide much assistance with finding a rental home because it is normally so easy finding a tenant to fill a rental home that landlords don't need the assistance of a Realtor. Our MLS does have a few rental homes available. The ones I can offer can be found by going to "Property Search" and "For Rent" on the menu across the top of my web site.

I usually answer those calls I receive with try the Paducah Sun or the VCI Classifieds. Anymore, I believe the VCI Classifieds would be the best source for rental homes. If it's not on the VCI Classifieds it probably just has a "For Rent" sign in the front yard.

McCracken County Courthouse Sale

The following properties will be auctioned at the McCracken County courthouse on March 28. Two of these sales are to recover past due taxes.

At the auction the special commissioner will describe something called the "right of redemption". The special commissioner will have two appraisers evaluate each of these properties. Two-thirds of the appraised value is the amount which determines if the previous owner has a "right of redemption". This is a right given the previous owner who lost the property to redeem him or hersself. If a property is sold for less than the "2/3 value" the previous owner can pay the amount plus interest to regain the property. If the property is sold for more than 2/3's the appraised value the previous owner loses the right of redemption and cannot re-purchase the property.

Note: These properties cannot be viewed like a typical listed or "for sale by owner" property. You pretty much take your chances with them.

• 703 Clark St, recover $115,359.89
• 1052 BROWN ST, recover $39,486.70
• 325 S FRIENDSHIP RD, recover $72,964.79
• 1706 N 10th ST, recover $78,579.23
• 1801 HUSBANDS RD, recover $87,040.20
• 2109 S 28th ST AND 2119 S 28th ST, recover $5,595.10 (tax lien sale)
• 3020 HOVEKAMP RD, recover $74,492.92
• 251 GATEWOOD DR, recover $125,459.73
• 3400 OLD MAYFIELD RD, recover $14,480.14
• 404 CHARLESTON AVE, recover $60,348.35
• 3525 CENTRAL AVE, recover $7,259.35 (tax lien sale)
• 7725 OLD US HWY 45, BOAZ, recover $109,619.48

McCracken County Courthouse Sale

The following properties will be auctioned at the McCracken County courthouse on February 28.

• 2013 Homewood Avenue, recover $35,260.64
• 437 Milliken, recover $47,456.41
• 1365 S 6th ST, recover $17,649.49
• 5415 OLD LOVELACEVILLE Road, recover $69,413.91
• 720 S 11th ST, recover $46,237.63
• 3208 BENTON RD, recover $42,344.77
• 2201 COUNTY LINE Road, recover $47,419.43
• 651 N 42nd ST, recover $63,648.08
• 719 N 6th ST, recover $47,402.10
• 137 WINDMERE DR, recover $88,143.86
• 150 SCHMIDT RD, recover $258,108.92

McCracken County Courthouse Sale

The following properties will be auctioned at the McCracken County courthouse on January 31.

• 3826 HOWLE ST, recover $78,997.59
• 2105 HOMEWOOD, recover $80,436.33
• 800 H C MATHIS DR, recover $41,554.47
• 1016 HUSBAND RD, recover $73,167.41
• 2118 CLAY ST, recover $72,072.05
• 2551 HOMEWOOD, recover $45,625.90
• 450 LEEDS RD,, recover $68,376.45
• 125 WILDCAT TRACE, recover $182,252.69
• 221 ILLINOIS ST, recover $75,384.70
• 180 MOHAWK DR, recover $63,037.47
• 150 PLANTATION WAY, recover $291,770.76
• 801 MARTIN LUTHER KING, JR, recover $57,783.20
• 165 JOLEE WAY, recover $154.722.68
• 2612 OLD MAYFIELD, recover $65,606.63
• 1111 LACKEY ST, recover ?
• 3418 BUCKNER LN, recover $142,150.96
• 826 SANDERS AVE, recover $115,437.27
• 12055 CHILDRESS RD, recover $65,520.82
• 5110 CONCORD AVE, recover $87,292.07
• 147 SKYLARK DR, recover $107,912.57
• 4445 HUSBAND RD, recover $109,563.51
• 540 FAIRVIEW DR, recover $180,750.84

Picking Up Speed

More buyers are out looking for a home with a down payment in hand. Why you may ask? Two words... "tax season". This increased buying time will last a couple of months and then likely slow down again.

If you have your home for sale you should consider taking advantage of this increase buying time during this overall slow economic period. If you have a serious buyer come along negotiate with them. If you lose that buyer you might have to hold onto your home for many more months.

You might ask "How do I negotiate?" The most obvious item most buyers have on their mind when buying a home is the price. Consider dropping the price more than you might want to while you keep in mind you can sell your home now and avoid many more months of waiting.

If you are firm on your price for whatever reason consider increasing the value of your home. Give it the appearance it is priced well or underpriced. Go above and beyond in making the home appear in great condition by doing those things you never had time to do like cleaning extensively, painting anything that doesn't appear to be freshly painted. If you go another step up try replacing old doors with modern doors, replacing older carpet. A big item every seller should do besides clean is declutter. Move a lot of your "junk" out of the house into a storage unit so the home appears to have a lot of space. If you live in a cluttered home potential buyers are going to believe the home isn't big enough for them either.

If you believe buyers may have concerns about the home you can negotiate a home warranty into the sale. Buyers can ask for a home warranty even if the seller doesn't offer it. In the negotiation the buyer or seller can pay all or a portion of the price of the home warranty. These warranties are available in different levels so they cost different amounts. A simple home warranty may cost $250 and cover appliances.

Another method often used to increase the likelihood of a sale is to appeal to the "greediness" of the Realtors. This is done by offering a bonus to the selling agent. A common bonus will state if the home is under contract or closed by a certain date the Realtor will receive a $1,000 bonus.

Regardless of the method you use I personally believe if you have a certain price you want to sell the home adding value is the best route.

If you need assistance selling your home call or email. One of the first things many "for sale by owner" sellers tell me when I first meet them is how they showed their to a lot of buyers who wasted their time. I explain to them a buyer who uses an agent is a serious buyer whereas a lot of buyers who are shopping "for sale by owners" are looking for a great deal or owner financing.

Slow Going

Sales have been slow lately. There are many homes available for sale but there aren't many buyers out there looking at houses.

Some sellers have opted to wait until the market returns to better conditions which may work for some but that won't meet the needs of those who need to sell now. The best way to get your home to sell in these conditions is to increase the value of your home. No matter what condition the home is in you can always sell a home. The determining factor is always price.

If you need a certain amount from the sale of your home and that amount is near the top of the sales range for your type of home you should look for ways to increase the home's value. Value is always in the eye of the beholder. You can increase the value by spending money to make improvements to your home or you can find free or inexpensive ways.

Free ways to improve the value of your home may include rearranging the furniture to make the home appear larger. This may mean moving some of your furniture out of your home. Remove clutter from around the house, especially, the kitchen and bathroom. Clean the walls and around the doorways and light switches where the grease and dirt on hands tend to collect. When buyers view your home turn on the lights in the home so the home is bright and appears larger.

Inexpensive methods you can do include putting a fresh coat of paint in the house. This may not include every room but try to put neutral colors in the home to appeal to a broader range of buyers. A room with a bright red or pink girls bedroom won't be appreciated by many buyers. Call a professional floor cleaner to spruce up the carpets or hardwood. Put up new blinds or curtains. Always make the entryway to the home very appealing.

Any home can be sold. The determining factor is price. If you want top dollar from your home you need to ensure it has value. If selling the home quickly is more important consider dropping the price to the bottom of your price range.

Buyers - FSBO vs Realtor

I have a friend who flips houses. This person flips houses as cheaply as possible and is very negotiable on the sale price. Part of her money saving method is the "for sale by owner" (FSBO) method - she sells the homes herself instead of using a Realtor. I spoke with her recently at the latest home she has for sale. This home is adjacent to one of my rental homes. It was rather funny because after she showed the home to another couple she gave me that look of frustration.

She has had this home for sale for nearly a month and has showed it probably 30 times. Many of those people say they will go to the bank and try to get a loan. Most of those people either don't call back or can't get the loan.

This rings a bell about something I had told another homeowner last year. This home I listed and sold. I told him that the buyers that go (FSBO) shopping usually haven't spoken with a mortgage lender and don't have any idea if they can get a loan. Most often, they can't. I explained that the FSBO shoppers are quite different from buyers that call about a listed home. Before showing a home many Realtors will ask if the buyers have spoken to a lender and gotten prequalified for a loan. Getting prequalified for a loan is the first step any serious home buyer will take.

Moral of this story? If you are a serious home buyer, whether you are shopping FSBOs or using a Realtor, get pre-qualified and shop around for a lender with good rates and low closing costs.

Recent Sales Folow-Up

I thought I would follow-up from my previous entry. The end result for sales in McCracken County for the month of July ended up being 55 homes. After my previous blog entry there were several more sales made or entered into the MLS. So July was actually slightly higher than June.

Recent Sales

I haven't done a blog entry in a while so I thought I would do one on recent sales. Many people have commented about how slow the market is right now. Yes, sales have slowed a bit but people are always selling and buying. Some people are afraid to get their feet wet right now because of what they see or hear in the news.

I checked some statistics for single family homes in McCracken County this morning. The statistics show a slowdown as well. A significant point to remember is that sales earlier this year were high due to the tax credit. Many buyers and sellers were taking advantage of the 10% tax credit on resale homes. During the months from March to June the number of homes sold in McCracken County varied from 47 homes in March to as high as 69 homes in May. May was the month that most homes would have closed and taken advantage of the tax credit. Sales in April were 67 and June was down to 49 homes. So we had 47 in May, 67 in April, 69 in May and 49 in June. As you can see the number of sales increased and then came back down after the tax credit expired.

The month of July is nearly over. So far the number of sold McCracken County, single family homes has numbered just 32. There are 4 others that are pending but scheduled for July. Of further significance, the number of expired listings during the months mentioned varied from 10% to 15%. The number of expired listings in July has been 30%.

Here is a little extra info if you are interested. The average price of sold houses in McCracken County from the months March to June was as low as $118,000 in March to $176,000 in June. Again, this was the average sold price. The average unsold price for homes that did not sell varied from $153,000 in June to $205,000 in May. Notice how the average unsold price in June is less than the average sold price in June. Sometimes the statistics can be misleading. Everyone needs to remember that these are statistics and sometimes statistics can be quoted in different ways. However, the number of homes that sold during these months by an agent are fact.

Web Site Changes

My web site's homepage has undergone a few changes. I have had several regular visitors request that I add new listings for the other types of properties that are available. The properties displayed on the homepage are properties that have been listed in the last 48 hours.

In addition to the new listings I also went to the riverfront and took photos of several murals. The mural across the top shows the riverfront from many years ago as riverboats travelled passed the Paducah riverfront. The other photo of the mural changes each time you visit my website. There are a total of 11 mural photos you may see.

2010 Homes Sales Statistics

I've seen and heard from other agents that homes under $100,000 are selling very well because of the $8,000 tax credit. I checked the MLS for some statistics to see if this is correct. Here's what I found.

There have been a total of 332 homes to sell since January 1, 2010

• 185 homes under $100,000 have sold (56%)
• 73 homes between $100,000 and $150,000 have sold (22%)
• 34 homes between $150,000 and $200,000 have sold (10%)
• 38 homes over $200,000 have sold (11%)

Pending Home Sales Climbing

The number of Pending home sales in our Western Kentucky MLS is finally starting to increase. The number of Pendings had been holding steady around 70 for a couple of months but with the deadline for the home buyer tax credit nearing home sales are increasing.

January McCracken County Courthouse Auction

The McCracken County Master Commissioner's sale includes many foreclosures. In the current list to be auctioned on February 22 are the following properties. As the commissioner usually states before the auction some of these properties may not go to auction. Many of these properties are available as short sales before the foreclosure auction.

These properties cannot be accessed so buyers take risks with purchasing one of these properties. Generally, the lender that foreclosed on the property buys the property back at the courthouse auction. This step is a formailty. After the lender takes control of the property the lender does several things to prepare the property for sale: 1) The lender must determine the property's current market value so an appraisal or BPO is ordered, 2) a cleanup crew will remove all remaining personal items from the home, 3) another crew will make repairs to ensure the property isn't damaged by weather and that the property is safe for potential buyers to tour the property. In the case of HUD homes there will often be property condition reports. After most of this is complete a real estate agent will place the property on the market.

Property for Rent

January McCracken County Courthouse Auction

The McCracken County Master Commissioner's sale includes many foreclosures. In the current list to be auctioned on January 25 are the following properties. As the commissioner usually states before the auction some of these properties may not go to auction.

These properties cannot be accessed so buyers take risks with purchasing one of these properties. Generally, the lender that foreclosed on the property buys the property back at the courthouse auction. This step is a formailty. After the lender takes control of the property the lender does several things to prepare the property for sale: 1) The lender must determine the property's current market value so an appraisal or BPO is ordered, 2) a cleanup crew will remove all remaining personal items from the home, 3) another crew will make repairs to ensure the property isn't damaged by weather and that the property is safe for potential buyers to tour the property. In the case of HUD homes there will often be property condition reports. After most of this is complete a real estate agent will place the property on the market.

Residential Sales Year to Date

This past year has had a lot going on in the residential real estate market. The beginning of the year doesn't quite resemble the present state of real estate. In regards to foreclosures, the number is still rising and the values of those homes are increasing as well. Aside from the foreclosures some home values are down slightly.

The number of homes that sell during the winter months are less than during the warmer months. Cold weather doesn't make for a good time to move unless it's absolutely necessary. We are now entering the period when homes sales will slow again.

Over the year homes that did sell sold for an average of 91% - 94% of the asking price. This means if the average sale price of a home with an asking price of $100,000 likely sold for around $91,000 - $94,000 in price.

Average sales prices ranged from $101,045 to $139,109 across all the counties in our Western Kentucky MLS. The number of days on market ranged from 138 days to 167 days. Another intesting statistic was that of all the homes that have been for sale, only 21% to 46% sold.

Of particular interest are very low interest rates and government programs designed to encourage home buying. Some lenders have interest rates as low as 4.3%. I always tell home buyers to shop around when deciding who to obtain a mortgage from. Why? Interest rates are a very important factor but closing costs can be significant as well. Some lenders will charge you a hefty fee just to provide you a loan. Of the government programs are the $8,000 New Home Buyer and $6,500 existing homeowner program. The state of Kentucky also has a program for anyone purchasing a brand new home.

Commercial Real Estate

I've noticed a lot of commercial real estate going to auction recently. The economy has put a real damper on commercial property transactions. Owners who haven't been able to sell their buildings in an adequate amount of time either find alternate uses for them, continue trying to sell or auction.

An example of an upcoming commercial auction is the Turner Publishing building on Broadway. This auction includes two downtown buildings near each other. They have been on the market since Jan 2008. It was originally listed for $310,000. Since then the price has been dropped in large increments. The current price is $189,000. Don't forget, this is for two buildings. One is suited for a retail business or office space and the other is more suited for storage. With these buildings being in downtown Paducah and there always being a lack of parking even an auction may not bring much.

Kentucky Home Buyer Tax Credit

Besides the $8,000 first time home buyer tax credit, the state of Kentucky also has a tax credit for purchasers of new homes. The purchase has several stipulations but has the advantage of working for previous home owners whereas the $8,000 tax credit won't.

More information is available on this state web site.

Upcoming Courthouse Auction

The McCracken County Master Commissioner's sale includes many foreclosures. In the current list to be auctioned on August 25 are the following properties. As the commissioner usually states before the auction some of these properties may not go to auction:

Fair Housing

As a Realtor, I am required to complete 3 hours of continuing education in real estate law and another 3 hours in general real estate knowledge. For this year's law course I chose to complete an online course in Fair Housing. The course has been very interesting and a bit scary with some of the examples provided.

A section of the course is about cultural diversity. The section pointed out differences from our local culture that I found were quite interesting. A few of these culture differences are noted below:

• In the US we say "time is money" and expect meetings to take place on time. The Japanese, however, find it acceptable to be 15 to 30 minutes late. Germans and Aussies however find one minute late as being rude.
• Most houses are built with the front door facing the street. Some Asian cultures require the front door to face a specific direction. Some middle eastern cultures will only live in a single story home.
• Most everyone has heard of fung shui. This is an ancient Chinese philosophy that intends to improve the flow of energy in a person's environment. This means better flow energy in the person. A fundamental teaching of fung shui teaches that bad luck travels in straight lines that are called "secret arrows". Good luck, however, travels in curved paths. Fung shui believers prefer curved or spiral staircases. Stairways facing the front door are considered bad, as bad luck can enter and good luck can leave. The stove and the sink must not be opposite each other because fire and water do not mix.
• Many Americans are superstitious of the number 13. Many tall buildings skip the 13th floor. Many Asian cultures consider the number eight lucky and the number four unlucky. The word for the number eight sounds like "rich" or "luck" and the word for the number four sounds like "death". Koreans associate the numbers three and seven for the same reasons.
• A death in a home would be a significant factor for someone from Asia because they would not want to risk inheriting the previous owner's bad luck.

Tax Credit Changes Denied!

I was informed today that the FHA has officially determined that banks cannot offer bridge loans against the new home buyer tax credit as mentioned in the previous blog post. Apparently, a law was found that prevents banks from providing loans for the 3.5% down payment as required by FHA loans. The FHA rules require that the buyer must provide the down payment. A loan from a bank to cover the down payment is not allowed.

Further details of the ruling can be found here.

Possible Changes to Tax Credit

I received an email today from a local lender. The email was forwarding an article from CNN. The article referred to possible changes to the $8,000 first time homebuyer tax credit. NAR pointed out that many first time homebuyers have difficulty making the 4% down payment required as part of an FHA loan. Right now, new home buyers would receive up to an $8,000 tax credit on their next tax return. This means buy a home now, get free money later. However, buyers without the 4% down payment can't purchase a home.

This potential change proposed by HUD would allow these qualified first time home buyers, who are also FHA approved, to use the tax credit immediately for the 4% down payment. This would spur much more home buying.

If you have been searching for a home and qualify as a first time homebuyer, call me so I can assist you in getting pre-qualified with a lender. After the lender has pre-approved you we can tour homes that fit your needs and budget. My number is 270-994-3749

Number of Home Sales Still Rising

The number of pending sales in the Western Kentucky MLS are slowly rising. I checked this statistic in the MLS this morning and it was up to 87 properties. Some of these properties are homes, some are commercial, lots or farms. Some may even be multifamily homes like duplexes and such.

Interest rates have been fluctuating slightly but rates are still great. Rates WILL eventually go up. Don't get left behind or regretting you had purchased when rates were low. Also, don't forget about the government's first time homebuyer program that could get you up to an $8,000 tax credit on your tax return.

If you are considering purchasing a property call or email me so we can talk about the home buying process or what you need. Finding a home can often take weeks or months to find a home that fits your needs and wants. I often find many home buyers aren't familiar with the process. If we can sit down for a bit I can explain the process and answer any questions you may have. And remember, as a buyer my services are paid by the seller so you won't owe me anything. :-)

My cell phone number is 270-994-3749

Pending Homes Sales

Ever notice in the news about a statistic called "Pending home sales"?

What is a "pending home sale"? A "pending home sale" is a home where the buyer and seller have agreed on a sale. This is the official status of a home after a buyer has agreed to buy the home and before the home has closed. This is usually a period of about 30 days. During this time the buyer generally has the home inspected and is ensuring there aren't any problems with a home loan.

Where is this statistic recorded? This is a statistic found in the Multiple Listing Services around the country. As of this morning there are 76 properties (residential, commercial, land, multifamily, farms) with a Pending status in our Western kentucky Regional MLS. This is the most I've seen in a Pending status in many months.

Why is this important? The data obtained from the pending home sales is used by the National Association of Realtors to calculate the Pending Homes Sales Index (PHSI). This official leading indicator indicates the number of homes sales expected in the next 30 or 60 days. Generally, 80% of Pending homes close within 60 days. Not all homes do close but a good percentage do.

Next time you hear this statistic in the news, generally around the first week of each month, pay attention to if the count has increased or decreased from last month. This tells you what buyers are doing.

Resale Homes

What is a "resale home"? Basically, it's a used home. On the flip side you've got a brand new home that no one has ever lived in.

A common mistake made by most buyers touring homes is the failure to overlook certain particulars of the home. When touring a resale home potential buyers should try to overlook the furniture, the colors of the walls and, when possible, the flooring. Many buyers will often repaint the walls or change the flooring. If the home has wood flooring, some buyers will put carpet over the wood. Our MLS even has a spot for just this type of flooring (carpet over wood) because it's so common.

Buyers that critique wall colors, furniture and such can't find a home they're happy with. By overlooking these small details and seeing the potential in the home you can include your plans into purchase negotiations. For example, if you like a home but don't like the color of a room or rooms, include special requests in your purchase offer. Request the sellers repaint the wall to a color of your choice or put down different flooring. You can even purchase the paint and take it to them. Your Realtor will likely ensure the purchase contract is written so that the paint job must be approved after completion and that the buyers don't backout after the rooms have been painted. If the sellers won't make these type of changes lower your offer price and take on these changes for yourself.

This also applies to countertops, light fixtures, window coverings and wallpaper.

Surge in Mortgage Applications

Mortgage applications have been surging for the past several weeks. A few of the local mortgage officers I speak with have described how they are covered up with current home owners refinancing into lower rates and wanna be home owners trying to take advantage of low interest rates and a plethora of homes to choose from.

Three mortgage officers I know of send out weekly emails to real estate agents with notices of their rates. Last week saw a big dip in rates to well below 5%. Those rates didn't last long but are still very attractive.

If you are considering purchasing a home in the near future the most important first step for you to take is to meet with a mortgage officer of your choosing and get pre-qualified for a loan. Many of us agents will ask you right off the bat if you are pre-qualified. Some agents will ask you go get pre-qualified before showing you a home. Some foreclosures on the market require a pre-qualification letter with your purchase offer to prove you are qualified for a loan before your offer to purchase will be considered.

Another advantage of getting pre-qualified? Your mortgage application adds to statistics which can help improve the appearance that the economy is recovering. :-)

Today's Master Commissioner Sale

The master commissioner's sale was held today at the McCracken County Courthouse. There were probably 50 people in attendance. Of the many properties I listed in a previous blog here are a few highlighted properties that were sold.

• 1415 Madison St, lot, appraised at $2,500. Sold for $1,700
  
• 1424 Little Avenue, lot, appraised at $5,000. Sold for $3,450
  
• 934-936 North 10th Street, appraised for $110,000. Sold for $73,500
  
• 2069 Irvin Cobb Drive, former bar or nightclub, appraised at $240,000. Sold for $200,000. This property was previously listed by a couple of in-town agents at a price between $650,000 to $775,000
  
• 1724 Monroe, house, appraised for $60,000. Sold for $40,001
  
• 1204 Park Avenue, house, appraised for $45,000. Sold for $34,000
  
• 250 Jennifer Lane, house, appraised for $240,000. Sold for $205,000
  
• 101 Sarah Cove, house, appraised for $68,000. Sold for $45,339
  
• 2865 Oaks Road, house, Appraised for $96,000. Sold for $109,100.

Many of today's foreclosures had private buyers bidding against the lenders that foreclosed on the properties. In one auction the bank actually lost the auction. I suspect the attorney that represented the lender was allowed to bid up to a certain amount. The winning bid was 1 cent higher than the banks max bid.

The appraised values were the values stated by the auctioneer.

One of the things I get a kick out of when I attend these auctions is how many of the attendees know each other. I myself knew several people there today. Like myself, several people were there taking notes and not participating.

I particularly like attending these classes because I get to meet new peers and talk with friends. One of the ways we meet new peers is by working in groups on brief group collaborations. We also exchange business cards so we can provide client referrals to some of the agents we meet (networking).

Of all the good conversation I had there was one thing in particular that was said that most, if not all, agents had noticed. Most agents have noticed a significant increase in business since January 1st. Some agents said their buyers were waiting until after the annauguration took place. I personally noticed an increase in business shortly before that event.

Court House Auctions January 26 at 1:30pm

Generally, any bank lender foreclosures that are held are purchased back by the lender. These autions are usually not purchased by auction visitors. There are properties to be auctioned from time to time that are unrelated to failed mortgages.

This January 26, 2009 there are several properties being auctioned. Most are lender foreclosures but there are several this month that are being auctioned to pay delinquent taxes, nuisance code liens or are the result of a dispute between parties. Habitat for Humanity has foreclosures this month as well. This month I have listed auctions that would likely be available to a private buyer or investor.

• 1415 Madison Street - Judgement to collect $10,531.78 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
   
• 1424 Little Avenue - Judgement to collect $10,941.37 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
   
• 934-936 North 10th Street & 2069 Irvin Cobb - Recover costs of $11,231.57 for delinquent taxes on both properties. Recover costs of $3,568.72 for citation liens on the North 10th Street property. 934 -936 North 10th Street is 2 tracts measuring 134' 6" x 48' x 134' 6" x 48'. Tract 2 is 134' 6" x 24' x 134' 6" x 24'. 2069 Irvin Cobb is 1.024 acres according to subdivision plat.
   
• 1724 Monroe Street - Recover costs of $64,276.42 to recover judgement plus attorney fees and costs of sale.
   
• 1204 Park Avenue - Recover costs of $41,161.30 plus contingent deferred interest and costs of the sale. This is a Habitat for Humanity foreclosure. Lot size is 50' x 165'
   
• 1316 Madison Street - Judgement to collect $13,439.98 due to nuisance code liens and delinquent taxes, interest, attorney fees and auction costs.
   
• 927 Finley Street - Recover costs of $18,634.45 plus contingent deferred interest and costs of the sale. This is a Habitat for Humanity foreclosure.

As noted in the information posted in the Paducah Sun notice, these homes are generally not available for inspection even if you intend to bid on a property.

I intend to attend this auction. If you have any interest in any of these auctions let me know what you have in mind. Maybe I can provide assistance.

I don't want to list your house...

Yes, if you aren't serious about selling your home I'll pass on listing it. When I try to sell a home for a client I invest a lot of time and money. If you unable or unwilling to maintain the home in a good, clean condition or not willing to negotiate a fair price then we are likely wasting your time and mine.

When I list a home I gather important information about the home for placement in the MLS. This single entry gets your home listed on many, many web sites. An example of a few commonly used web sites are Realtor.com, Zillow.com, Trulia.com and my own and most other realtor web sites.

In addition to the MLS, I typically place your home with a brief description in the Paducah & McCracken County edition of the Catalog of Homes. This catalog displays many homes for sale in McCracken county. The catalog is used by buyers, sellers and others just to pass the time. Placing your home in the Catalog each month is not free and does not guarantee any responses.

Furthermore, I place a Prudential Real Estate yard sign in your front yard so that passersby will know your home is for sale. The sign has the well known Prudential name and "The Rock" logo on it as well my name and phone number across the bottom. The yard sign indicates that your home is being sold by a professional and allows interested parties to call me for more information. If someone wants to see your home I will coordinate an appointment for them to see the home.

I also place your home on a few additional web sites I frequent. Some are free and some are not. I may place ads in local newspapers from time to time along with Open House notices if you permit me to host. The typical open house in the Paducah area is performed from 2-4pm on Sunday afternoon.

This process may go on for months.

So, if you are serious about selling your home, in the current market, I'll be happy to list your home, advertise it and show it. Otherwise, you might consider waiting until market conditions improve.

Vacated Church I Sold Turned Into Something Good For Society!

All the churches were priced really cheap. One of them was in good shape and was being sold by the former church members who had attended. Their families had attended this church for many years and were sad to have to sell it. They were being very particular to who they sold the church for. When my client and I were gathering info on the church and he was considering making an offer, without even seeing the church, we had another buyer who was making an offer as well. I learned that other buyer's offer was turned down because he wanted to sell the items in the church piece by piece. The persons responsible for selling the church turned that offer down pretty quickly.

The church had the pews and the pulpit still inside. If I remember correctly the sound system was still in place as well. The basement leaked a little. Some of the shingles were blown off the roof. The church members had buried steel rods on the church property to mark the property boundary from the cemetery next door. The parking lot had grown grass over a majority of the gravel.

During the closing my client, Ron Henry, asked us to pray with him and he showed us a video he had produced himself. This video took nearly an hour for all of us to watch. The person's present besides myself and Ron were the broker doing the closing and the representatives from the church. Ron made it clear to the former church members he had no intention of destroying the church. As a matter of fact I believe the agreement even stated that if Ron ever decided to get rid of the church that the former church member's would have the opportunity to buy it back at the same price.

I hadn't heard from Ron since the closing. My job was done. The church building was near the town of Clinton, KY, nearly an hour away from my home and work. That friend that referred Ron to me brought me a newspaper article that was written a few months ago. I was so impressed I wanted to share it with everyone else.

Read the article to see what Ron did with this church building! Here's to you Ron!

Buy a home, receive a $7,500 interest free loan from the Fed

Interest rates are another advantage to home buyers. Rates are about as low as they get. With today's interest rates you can save a ton of money over the length of a 15 or 30 year loan. A few years ago when I refinanced my home loan the length of my loan dropped from 30 years to 15 years. My payment stayed the same.

Another, lesser known advantage to buying a home now is a tax free loan available via the Housing and Economic Recovery Act of 2008. This loan is available to qualified home buyers when the 2008 or 2009 tax return is filed. To be qualified, a home buyer must not have owned a home in the past 3 years. The amount of credit is equal to 10% of the purchase price but no more than $7,500. If you purchase the home after Jan 1 2009 but before the deadline of July 1, 2009, you can still receive the credit by filing an amended 2008 tax return.

Remember, I said this is a LOAN? You receive the money via your taxes but it's equivalent to a interest free loan. After two years the money must be repaid via your tax return. If you claim the full $7,500, your tax return will pay back $500 each year over a 15 year period until the full amount has been returned.

Another key point... if you sell your home before the amount has been repaid at a profit you must pay off the loan with any profits. On the other hand, if you sell the home at a loss the loan is forgiven.

Another important detail I've read regarding pay back of the loan at tax time is you may need to adjust your federal tax wage withholding to ensure you cover the credit pay back.

More details are available on Realtor.org and at KAR.com

Thinner Catalog of Homes

This month's issue was noticeable thinner. I compared last month's issue and found that it does indeed contain fewer pages. The last issue had 115 pages. This issue has 102 pages.

I don't have a page in the Catalog this month myself. The homes I had listed have either sold or expired so I didn't place an order. The expired listings have sellers waiting for the market to rebound before they attempt to sell again.

While talking to my broker about listing incentives, we talked about how the current problem isn't getting people to list their homes, it's getting buyers for those homes. Although interest rates are going lower and lower, people are being very cautious during these tough economic times. The market hasn't come to a complete standstill. Not everyone halts their life during a recession. If mortgage rates go down to 4.5% we expect buyers to come out again.

Personally, I obtained my own home loan with a local mortgage officer using a VA loan. When I purchased the home in 2001 I got a rate of 7.5% and a 30 year term. I refinanced with another VA loan and the same mortgage officer back in 2003. My rate went down to 5% and a 15 year term. My payment went up a handful of dollars but it was WELL worth the savings.

My broker and I also spoke about how the local board of Realtors had nearly 20% of their agents not sell a single property in 2008 and they expected several agents to escrow their license in 2009.

Bargains

I went to another auction this past Saturday. Up for absolute auction was a 2,900 square foot home. The home was valued at around $300,000. It was a 2 story home, 4 bedroom with 3.5 baths. Most of the home was outdated but it was maintained well. The outside of the brick home was in very good condition. I believe they said it was built in the 70's by a reputable construction business - of which the son of the construction business had lived next door for a while.

The owner of the home had past away 3 years ago. The widow had built a new home and moved into that home with her daughter. The auctioneer asked for a moment of silence before the auction began in respect of the family. I don't know if they were present but I didn't hear him mention the family being there. All of the owner's belongings were about to be auctioned off as well.

Although the home was really nice and large with a good neighborhood the home didn't yield much. As with the previous auctions the auctioneer appeared disappointed or maybe even embarrassed that the home was getting so little response. I think there were 3 bidders that bid but near the end one had dropped out. A young family ended up with the house at $145,000 - not including the 10% buyers fee tacked on by the auctioneer.

Like I said, I don't know about previous years but the auctions I've seen in my area recently have been good for the buyers but not so good for sellers unless they only want to get rid of the property quick.