Expert Real Estate Louisville, Kentucky

Ha, ha! I love that title. When you get done reading, take a look at the link below to see where I found it…

I think it is an apt title for this post because it is obvious and oh so true. It is hard to plan for the future, not only because it hasn’t happened yet (obviously), but because it is hard to find the time, motivation, and guidance to do it in a productive manner (true).

How does this apply to real estate, especially for you first-time home buyers? Simple…You need a financial plan in place before you even consider making an offer on a new home. It takes time, personal honesty, and the motivation to see the plan through to implementation to make it a success.

What should you consider in this financial planning? You need to accurately assess your income from all sources, determine your credit scores and correct your credit report (see the post below), and you need to analyze your expenses. You need to determine your short and long-term budget, plus you may need to consider adjusting spending habits. You should seriously consider speaking with a professional financial planner.

The reason for all of this planning is because a home is a tremendous asset, probably the largest asset you will control, but it is very hard to quickly turn into cash. In other words, if you are committed to a mortgage, you will have to continue making those payments regardless of any other unexpected changes to your financial status and risk negative effects if you fail to do this as promised.

Yes, you could borrow against the equity in the home if you have any, but this will most likely serve to make your financial situation worse. So, it is extremely important that you have planned not only for your normal budget, but added extra as a buffer.

Something else to consider when planning your finances for buying a new home is there will be unexpected and possibly new expenses that you will experience for the first time. Yard maintenance, exterior maintenance like the roof, gutters, windows, and landscaping, plus all other mechanical and electrical components in the house will now be solely your responsibility. And…You have to keep up with these things. If you let the maintenance go, it could cause at least minor financial troubles leading up to major damage to the home.

I suggest getting out a piece of paper (or firing up the computer) and making lists of all of your current expenses, plus your expected new expenses. Call around to your friends and family who are already homeowners and ask them what they pay for routine maintenance and upkeep. Add a buffer to this. Be realistic and make sure when you are finished, you have enough money left over to pay for the mortgage you think you want. You may be surprised, but at least you will have that surprise behind you, the adjustments made, and your budget planned before you enter into a contract to purchase your new home.

Most of all, I suggest the guidance of a professional financial planner. A very small investment to save or earn potentially substantial sums of money in the future.

Okay, now the inspiration for the title: Frank Caliendo as GWB. Note that this is not considered political commentary by me, just a guy trying to be funny.

If you have any questions, or would like to discuss buying or selling real estate, contact me through my website, Louisville Homes.

Wow! What a great time to buy a Louisville, KY home! Interest rates are extremely low, lenders have stabilized their underwriting requirements, and there is a huge inventory of homes to choose from in the Louisville area… It’s an ideal market to maximize your buying dollar!

If you are thinking of purchasing your first Louisville home my website, Louisville Homes, has loads of useful information and tutorials to help get you started.

If you would like to read about defensive buying techniques, especially when the economy exhibits some signs of challenge, go here. I have posted an article giving advice on how to take advantage of a buyer’s market here. Keep in mind I think there are endless ways to structure deals that can be very beneficial in their own right, especially in the current market in the Greater Louisville Area.

There is no doubt that a savvy buyer who has properly prepared themselves financially and through thorough market research stands to be in an advantageous position presently. The mortgage rates are going to fluctuate, home prices will probably begin to rise as the market recovers, and the inventory will decrease as more and more buyers make their move. It’s a great time to buy while the market adjusts!

Please feel free to contact me through my website with any questions regarding buying a home. You can also search the entire Louisville MLS for free on my site. Good luck, may this market treat you well!

We are almost there.

My opinion is that within the next two years, the internet will be responsible for initiating 90+% of all real estate transfers. Of course, this is very bad news for print publications, but the flexibility and search capabilities of the internet makes flipping through a magazine randomly looking for a home a waste of time. I’m sure those options will linger for those who prefer them , but it won’t be much further down the road where print publications cannot financially survive.

Why am I telling you this? Because the age of the internet is fully upon us today and there are buyers and sellers who have completely embraced the technology to their advantage. This means these buyers and sellers will have a significant jump on the competition in terms of speed, knowledge, and timely market information. If you are not on the same playing field, using the same technology, your dream home could be snapped up before you even know it exists, or your neighbor’s home sold before you get a first showing.

What can you do to catch up if you are new to using the internet in this manner, or to improve your technique if you have some experience? The short answer is to partner with a Realtor who is internet savvy and let them help you learn to fully utilize the system. Certainly I have an obvious bias in this situation, but I also have a tremendous amount of experience with the internet and the know-how to make it work for my clients. The best part is I give the advice and guidance for free, but I do ask that you strongly consider using me to help you close your transaction.

Another option you have is to sit in front of the computer and start using the internet. Go to Google and begin to search for terms that relate to what you wish to do. Read as many articles as you can online that give guidance on how to find homes on the internet. You should be aware that you can find out a huge amount of public information on the internet, most likely for free, that will expose critical information about specific properties that can be used favorably in negotiations. You will most likely need someone with significant experience to find this information (like me), but it is available.

There are other options, if you please, but the point is to get involved, learn the technology, and get ahead of the competition NOW! Even if you cannot use a computer, don’t own a computer, or are not even sure what the internet is (it makes me wonder how you are reading this post!!), you can make the technology work for you by using a knowledgeable partner. All you need to do is communicate in the terms that are familiar to you and have your partner translate it into internet-speak.

I promise you will be amazed if you have the opportunity to see the full power of the internet in action, and you will never want to go back to the old ways. It’s just too convenient, logical, and saves so much time and effort. Give me a call, or send an email and I will be happy to demonstrate to you this wonderful tool. You can also visit my website, Real Estate Louisville, to search the Louisville MLS for free!