getting your money back!

People often ask me where they should spend their money when they are considering home improvement projects. Common sense dictates putting your dollars where they'll reap the greatest reward upon resale. The latest report from the National Association of Realtors (NAR) reports that the highest payback for home improvements are exterior projects. The highest reporting items of cost vs. value (i.e. what you spend on a home improvement and what you get in return in resale value) is siding replacement (88%) , followed by a wooden deck addition (85%) , then window replacement (81%). A minor kitchen remodel returns the investment at 83%.

looking for open houses?

Truth is, before I worked in real estate, I just loved stopping by an open house to look at houses especially in my own neighborhood. And face it, visiting open houses is always a fun way to take a peak at houses for sale that catch your eye without bugging the real estate agent. (Remember though, if you are working with a buyer's agent to let the open house host know that you are already working with a Realtor. They should respect that relationship and be glad that you have an agent to represent your interests! Also, as one of my clients says, "every house is an open house when you are working with a buyer's agent!" so if you are actively in the market)

I've recently found a great new local website http://www.openhousesky.com that agents can put the homes they are holding open that weekend. Check it out if you have a boring Sunday afternoon and want to go look at some houses!

Need to clear out your bookshelves?

Sometimes when you're getting ready to sell and move, some of the bulk items you need to declutter are books! There's a great local organization that is a fantastic resource in helping you find a good home for those tomes. In fact, it's one of my favorite charities, Lexington's own International Book Project. Affectionately known as IBP, the organization acts internationally, nationally and locally to promote literacy and global friendships by shipping books directly to schools, libraries, and peace corps volunteers throughout the world. This year, IBP was recognized by the Million Dollar Roundtable as its charity of the year and has shipped thousands of books to those in need.

Donated books that are not appropriate for shipment overseas (cookbooks for example) are sold through a used book store the organization operates at its warehouse, located at 1440 Delaware Avenue (between Winchester & Liberty Roads).

I'd be remiss if I didn't mention they also take monetary donations to ship the books as well, so if you need to declutter your wallet -- they can help with that too! Or, if you are new to Lexington, love books and want to get involved with a wonderful charity through volunteering talent, IBP is a great place to volunteer locally and have the satisfaction of truly helping people around the world.

What does "Buyer Agency" Mean?

Check out this link from my website if the term buyer agency confuses you. If you are in the home shopping market place, ask if your Realtor is an "ABR"--Accredited Buyer's Agent. It's a better assurance that your agent really knows how to best represent your interests as a purchaser.

http://www.moving2centralky.com/Nav.aspx/Page=/About/Default.aspx

Don't forget the Home Inspection...

As you are budgeting for what costs you'll incur as a home buyer, don't forget to include a home inspection. Most inspectors want to be paid at the time of service, however, a few will allow you to put the costs on the closing statement under special circumstances like having an FHA loan or a lot of seller paid closing costs. Typically the cost is between $250 and $450 depending upon the inspector as well as the size, age and cost of the home.

Even when purchasing new construction, a home inspection can be dollars well-spent. A home inspector may find a shortage of insulation or an attic vent that hasn't been cut out. The new construction offer-to-purchase should allow you to reserve the right to have a home inspection and a good builder won't mind you having that done.

On existing construction, a home inspection helps to ensure that you are purchasing the home you think you are buying! if the home inspection uncovers flaws within the home that weren't disclosed you should have an opportunity to negotiate repairs or to void the contract depending upon how your contract is written. It's important to discuss those details of what will happen with your inspection with your buyer's agent (and another great reason to have your own buyer's agent) at the time you make your offer to purchase.

Since the summer of 2006, Kentucky has required home inspectors to be licensed. I can provide you with a list of licensed inspectors and help you make the right choice for your home purchase.

good news!

I read this article and thought I would share it with you as it isn't doom and gloom!!!!!!! Let's hope that it's true.

Daily Real Estate News November 6, 2007Could Mortgage Rates Drop to 5 Percent?

The manager of the world's largest bond fund predicted Monday that the Federal Reserve "cannot afford" to let U.S. housing prices fall and will have to cut interest rates aggressively to prevent it from happening."A Fed cannot afford to let homes go down by 10 to 15 percent like we saw in Japan," Bill Gross, chief investment officer of Pacific Investment Management Co., said on CNBC Television. "We've only begun to see the pain from the standpoint of the home owner in terms of those monthly payments. Defaults and delinquencies will increase as we extend throughout 2007 and then into 2008."Gross expects the Fed to cut the federal funds short-term rate to 3.5 percent, which implies that the 30-year mortgage rates will come down to 5 percent to 5.5 percent.

Source: Reuters News (11/05/07)

latest staging tips

The best staging tip I've heard lately is to lose the brass! Nothing seems to say "dated" more to a buyer these days than an overabundance of shiny brass cabinet knobs and light plate covers. Visit my house if you want to see an example of what I'm talking about! When you can't afford to replace your lovely 80s oak kitchen cabinets, try splurging on some new hardware for the cabinets and see if it doesn't make a noticeable difference in the appeal of your kitchen!

FSBO -- for sale by owner

If you are hunting for a home and working with a buyer's agent (which is a great idea!), your agent can show your for sale by owner homes (FSBO). Many sellers who are not listing with an agent are happy to allow a Realtor to show their home and work with a buyer represented by an agent. In fact, working with a buyer's agent helps them know that they are dealing with a qualified buyer and handle the myriad of paperwork and transaction details that Realtors manage on a day-to-day basis.

If you are a FSBO seller, be sure that buyer's agents are welcome at your door. They are the most likely source of buyers for you and can help ensure that the transaction runs smoothly. A good Realtor is worth every penny of the commission you'll pay them!

Red River Gorge Calendar

My friend John Snell, a very talented Kentucky photographer, just sent me the link for his 2008 Red River Gorge Calendar. Following the success of his book published last year called, “Red River Gorge, The Eloquent Landscape”, the new calendar promises to be a visual treat. The link to his calendar is http://www.johnsnellphoto.com. Hope you enjoy it!

Enjoying Central Kentucky - Red River Gorge

For the outdoor enthusiast thinking about relocating to Lexington or new to the area, Central Kentucky has many treasures within an hour's drive of Lexington. One of my favorite destinations is the Red River Gorge. Both the experienced and novice hiker can find trail after trail to enjoy in the Red River Gorge.

If you're looking for a quick easy day hike, try one of our family favorites: head to Natural Bridge State Park mid-morning. Park at the sky lift and take this up to the top (I recommend purchasing the round trip ticket and hold on to that ticket). The sky lift takes you to the top of the Bridge and from there you can find a number of trails. We typically traverse the bridge and take the trail that leads down to Hemlock Lodge for lunch. After lunch we take the Old Trail back up the mountain to the bridge (this will get your heart rate up) where we squeeze through Fat Man's Misery and end up back on top of the trail and return to parking via the Sky Lift. There's another short easy trail from the top of the bridge that gives you a great view looking back at the bridge for the fall visual effect.

Another easy but very rewarding trail is Sky Bridge. This super trail is mostly paved and provides very accessible access to Sky Bridge. If you're hiking with dogs or small children hold tight to them as you cross over the bridge (my dad confessed recently that he won't go over the bridge because he's scared of heights!). The top of the bridge affords a great view of the area and the underside provides a fascinating look at this natural wonder. Both Sky Bridge and the Natural Bridge trails are about the best introduction you can give yourself if you are new to the area. It's also fairly easy to do both of these spots in the same day as the Sky Bridge trail is no more than a mile.

A couple of great websites for more information about the Red River Gorge are www.RedRiverGorge.org and www.RedRiverGorge.com. The first site has a number of the trails listed there. If you can find it, I've also long relied on a book called Kentucky's Land of Arches.

My children also suggested I mention that one should definitely stop at the Dairy Queen in Stanton for a blizzard on the way home. After all, you'll burn a lot of calories hiking and you'll need a treat!

Real Estate is local!

Working with a lot of relocating clients, I am frequently asked "how's your real estate market in Lexington?" Of course, if every time we open the newspaper or log onto msn.com we get the bad, scary housing market news...you know, the bubble..., I don't blame people for asking.

I had the pleasure this morning to attend a speech by Dr. Lawrence Yun, the chief economist for the National Association of Realtors, for our local board of Realtors. What a insightful talk! Dr. Yun gave a great reminder that when you look at market trends you have to look locally. Comparing what's happening in the California and Florida market trends is like looking at Miami's weather to figure out what's happening in Lexington. Data for our local market, shows there isn't a bubble. The number of transactions in our local market is down, but that fact has little impact on the consumer (only on the people who make an income off the transactions like real estate agents, lenders, closing attorneys...you get the picture). For the consumer, home values are still strong and real estate remains a great investment for almost every buyer.

Dr. Yun presented a lot of great data on our Lexington real estate market vs. national trends and some specific markets like Washington D.C. As soon as his powerpoint presentation is available I'll create a link to it for you.

Seasonal curb appeal

I purchased the Mathews Family Halloween pumpkins today with my kids and it reminded me to post about some great staging advice as we approach the Fall season. If your house is on the market, limit the amount of seasonal decor you have outside. For October and November, a couple of welcoming pots of mums on the front porch are always appropriate! I always use the rule of thumb that if I'm asking myself if something is "too much", it probably is. Put out your jack'o'lanterns but remember to clean them up as they start to rot and keep that front porch swept, the yard raked, and the gutters cleaned out! Keep your home looking as easy to maintain as possible by staying on top of those season chores!

Shorter Commute Times

I recently read an article that verified what I've has always seemed like plain old common sense to me. Buyers are willing to pay more for houses that reduce their commute time to work. Here's the link to the article which appeared in Realty Times:

http://realtytimes.com/rtcpages/20070810_affordnear.htm




I interpret this as a great reason in Lexington to look at those kitschy 1950s neighborhoods like Pine Meadows, Southland and Gardenside as solid investments -- affordable, well-built homes that are just minutes from UK & Downtown. In addition, these neighborhoods offer the charm of mature trees, nearby schools, and in most of these homes a larger lot than you'll find in most newer neighborhoods which allows room for some lovely additions I've run across in recent years.


For example check out this home at 828 Summerville in Pine Meadows is priced at $139,000, offers gorgeous hardwood floors and has 1650 square feet of very usable living space. A great price for reduced commute times if you work anywhere near UK, downtown or St. Joe's or Central Baptist Hospital.




As we all become more and more sensitive to the time we spend behind the wheel and the pollution we're creating, these neighborhoods are poised to become the next Chevy Chase, Hollywood, Kenwick and Tahoma, Terrace: affordable, convenient and just a little more character than your average new neighborhood! For the first time home buyer or investor, take a look at what these wonderful neighborhoods have to offer.

new scam targeting new mortgagees

I just learned about a new scam from a Realtor friend in Radcliffe, Kentucky and I feel compelled to spread the word. A recent past client of hers received a notice saying that their mortgage had been sold to XYZ company and that they would need to start making their monthly mortgage payment to XYZ company at a new address. The new home owners complied and two months later received notice from their original loan holder that they were two months behind on their mortgage payments! The authorities are investigating but the homeowners are out those two months payments and now have a blemish on their credit history. XYZ Company doesn't exist and they'd been scammed!

Apparently, these con artists are using notices of newly recorded liens and targeting new home buyers. My advice is, if you have purchased your home in the past two years and receive a letter saying that your loan has been sold, please take the time to verify its authenticity. It is common that new loans are sold but please be certain that it is legitimate!

What is home staging...

If you spend enough evening time with my husband flipping the TV channels, you eventually get to watch HGTV! I absolutely hate the Canadian shows where people can't sell their houses but I do enjoy getting sucked into the shows about home staging.

Staging has become a true buzz word in the real estate trade and it is an important one. Preparing a home for a faster sale and a greater return on your investment meets everybody's goals! In most people's minds staging is simply done by decluttering and this is absolutely the first step (see my earlier posts on this topic) but when staging you also want to create in people's minds ideal ways the existing spaces can be used. You want to help potential buyers see your space as their space and quite simply, want them to want to "live your life!"

Live Where You Work

If you are a UK employee and thinking of buying a home close to campus, be sure and check out the "Live where You Work" Program funded by UK and the city. This forgivable loan program allows you to borrow up to 5% of the purchase price of your home and if you live in the house for five or more years, you don't have to pay the loan back. And of course, you save lots in gas by cutting down on your commute time! What a deal!

The link for the program is: http://www.uky.edu/HR/benefits/EAHP/welcome.html

You'll find a property tool for the program to see if it is in the area and you can look a property up by the address as well to determine if it qualifies.

I have this link on my website as well but I think it's a great thing to know and a real perk of being a UK employee.

Green Lawns!

Although I wrote about "green" homes in my last post, I thought I might address some green lawns and getting yards in shape for the spring or, of course, getting ready to sell. I was looking at my own lawn and I have a lovely bare patch that looks like aliens landed and burned a whole in my yard with their space ship. Actually, someone left a wading pool filled with water too long in one spot, the sun got hot, and you can guess the rest of the story but aliens sound ever so much more fun!

Anyway, I have been staring at my personal bare spot (along with several places that my Jack Russells have been using as their potty all winter long) and contemplating some repairs. I took matters into my own hands with a rake and a bag of Wal-Mart grass seed but I may have gone about this all wrong. Today, lo and behold, I find this great website called American Lawns, http://www.american-lawns.com/problems/repair.html. This website has great tips for fixing not only my problem but lots of lawn problems.

Now if I can only find a great tip for pulling weeds!

Green Homes

One of my personal interests has long been ways to reduce my impact on the environment. I grew up in a home with a mother who was an avid environmentalist long before it became cool to be one. As a Realtor, I'm particularly interested in green homes and just found this great link that you may want to visit if it's something that interests you as well:

http://realtytimes.com/rtcpages/20070405_greenpaymore.htm

When you get to that site, there are other links to more Green Home information too.

Local Flavor Recipes

Now that Spring has sprung in the Bluegrass, it seems like we're getting ready for lots of entertaining: Easter, Derby Brunches, dinner after the Races. I decided for more of local flavors, I'd share here two of my favorite recipes from Creating a Stir that might be good to make at an event you might be hosting this Spring.

Creating a Stir has to be the best cookbook I've ever had! It was published by the Fayette County Medical Auxiliary in 1999 and has literally become my cooking Bible. I've yet to make a dish from it that hasn't become a house favorite. The book is also peppered with anecdotes about famous Kentuckians that add to the flavor! I love to give this book as a closing gift to people relocating to Lexington and it's a great graduation gift or wedding shower gift.

Always getting rave reviews from the book is The Feta Cranberry Walnut Salad

A bunch of mixed greens (about 8 people’s worth)

½-1 cup of craisins
1 cup of crumbled Feta
½-1 cup of chopped walnuts (I toast these but putting them in a little skillet with about a tablespoon of butter and then browning them)

Dressing is:
½ cup of vegetable oil
¼ cup of cider vinegar
¼ cup of chopped onion (chop very fine)
¼ cup of sugar (I’ve used splenda before but don’t really recommend it)

½ tsp. of paprika
¼ tsp. of ground mustard
¼ tsp of celery seed
1/8 ground pepper


Spinach Salad recipe is a

Baby Spinach for about 10 people
Sliced fresh strawberries (typically I use about 2/3 to a whole one of those plastic containers they sell strawberries in at Kroger)

Dressing
½ cup of sugar
¼ cup cider vinegar
½ cup vegetable oil
1 ½ teaspoons of minced onion
¼ tsp. Worcestershire sauce
¼ tsp paprika
1 tab. Poppy seeds
2 tablespoons of toasted sesame seeds (I literally “toast” these in the toaster oven now as I always burn them if I broil them)

Whisk all of those together but put the poppy seeds and sesame seeds in last.

These are the basic recipes from Creating a Stir (I’m writing them from memory so there might be some slight variations that I’ve added over the years)

Enjoy and Happy Spring!

Jean Farris Winery

Found a great new spot that's a definite highlight for local flavor. The Jean Farris Winery located out Old Richmond Road.

If you are new to Kentucky, or just been sleeping the last few years, one of the biggest changes in the local landscape is the absence of tobacco fields. Several years ago, the state started an initiative subsidizing replacement crops for tobacco. One of the funded crops has been vineyards and a number of lovely vineyards and wineries have popped in place of tobacco. One of the newest additions is the Jean Farris Winery which includes a remarkable bistro. The short five mile drive out Old Richmond Road is a reminder of what a treasure the Fayette County landscape is -- rolling hills, horses (and babies this time of year!) and beautiful Antebellum homes. Once your at the winery, the atmosphere and food is fantastic. The wine's quite good too! Their website is www.JeanFarris.com and you'll want a reservation!

Greetings from Atlanta!

Until Wednesday, I'll be attending the RE/MAX International Convention in Atlanta, Georgia networking with other RE/MAX agents from across the globe (!). I've already been learning about some great new ideas and techniques that will help me more effectively market and sell your home as well as lots of new strategies to help me be an even better negotiator on behalf of my buyer clients. I believe it's so important to stay current of what's new in this ever-changing real estate market. While I hate being away from my business for even a few days, I love the opportunity to "sharpen my saw" as Steven Covey would call it. In fact, tomorrow Steven Covey is the opening speaker.

I look forward to being back in Lexington Wednesday with new and powerful tools to put to work for my clients!

Magic Eraser -- a little cleaning goes a long way!

Showed a house this past weekend that had serious need for a "magic eraser." The house was only two years old but really dirty -- the sellers had neglected to clean off door frames, woodwork, and doors from grubby little fingers and it gave the whole house a feel like it just hadn't been well maintained. So sellers take note: a little cleaning goes a long way in getting a house ready to put on the market. A lot of buyers can even overlook dated if they get a general sense that the house has been well-maintained.

I have to give credit for my Magic Eraser knowledge to Kerri Buchanan. She taught me about Magic Eraser when we did a walk-through a new construction home she was purchasing and she got out lots of dark marks and surface wall blemishes out herself!

More local flavors

When I’ve moved somewhere, my favorite finds in a new city are always those little restaurants and shops that are locally owned and exclusive to that city. Lexington has a lot of great spots that are really special. Zuni, Part of Le Matin bakery, I’ve mentioned before and is probably my favorite lunch spots. And, if you’re looking for a great “Ladies who Lunch” stop you can’t beat The Greentree Tea Room. The Greentree requires a reservation and you’ll find it downtown on Short Street just before Victorian Square. The Greentree is absolutely delicious (the menu changes at the beginning of each month) and the atmosphere is simply charming.

Two more recommendations for Lexington visitors:

Joe Bologna’s has my vote for the all-time best pizza. It, too, is downtown on Maxwell (just north of the University of Kentucky) located in a converted synagogue. If you’ve never been there before be sure to order a breadstick.

And of course, you have to have some Barbecue. My hands-down fav? Billy’s BBQ. Located on the corner of Tates Creek (a.k.a. High Street) and Cochran. To the embarrassment of those who dine there with me, I love it so much I can practically drink the sauce! Love it! Check back later for more local flavor finds!

Moving damage

Just learned a great tip from a friend who recently moved back to Lexington from Kansas City. The movers had done an unbelievable amount of damage to her gorgeous furniture by not properly packing her furniture with pads. Fortunately, the movers on this end of her trip called her attention to the matter as they unloaded and she has digital pictures of the inadequate job that was done packing her valuables. She has great ammunition with those pictures now in her damage claim.

Brrr....

I thought global warming had done away with winter in Central Kentucky but not so! While we don't have the snows I remember from my childhood (way back when it was uphill in both directions to school) Lexington has certainly had its spell of cold weather lately. I had an inspection this morning and we had a very difficult time getting into the house because the MLS lockbox was frozen shut! That certainly doesn't happen every day.

Seems like we're up to our third snow day this year for 2007! One thing you'll want to be prepared for if you move to Fayette County and have kids in public schools, there are no built-in snow days! Plan on having some extra days tagged on at the end of May-beginning of June for each day the kids miss in class.

The latest info...

From the Lexington-Bluegrass Association of Realtors (LBAR) here is the latest statistical news on last year's real estate market:

Residential sales in LBAR’s market area where down 3% compared to 2005 which makes it the third best year in real estate sales. Of the 10,693 sales reported for the year 2006, 5,376 of those took place in Fayette County. As of the end of the year, there were 6,026 residential and townhouse/condo properties on the market for sale: 5,257 single family and 772 townhouse/condos.

Downtown Income Opportunity

Investors take note! Have you seen how much is happening in downtown Lexington these days with brand-new condos and lovely renovations? If you're looking for income potential, this great building is a perfect opportunity. The sellers have made MANY improvements and the building is an easy rent since it's less than a block from Transy and includes off-street parking for the tenants.

This week's mortgate news...

If you are keeping an eye on the housing market and interest rates, here's this week's word on the street (kindly taken from Mortgage Matters courtesy of Bluegrass Mortgage.) If you'd like to get this free weekly update, just email me at GwenMathews@remax.net and I can forward it on to you!

"Recent reports suggest that housing sales may be rebounding. New home sales rose in three of four months through November, and housing starts increased by 4.5% to a seasonally adjusted 1.642 million annual rate in December. Meanwhile, the National Association of Home Builders/Wells Fargo index of homebuilder sentiment rose to 35 this month from a revised 33 in December, the highest it has been since July.
Unfortunately, the housing market isn’t likely to receive much help from the Federal Reserve over the near future. While underlying inflation pressures have softened from mid-2006, the moderation likely isn't pronounced enough to convince Fed officials that price pressures are no longer a threat, suggesting that steady interest rates are the most likely path, at least through the first half of 2007.
Steady rates are also likely to apply to the mortgage markets. This week’s economic data releases are unlikely to move credit rates. Energy prices, having dropped precipitously over the past three weeks, are also unlikely to fall much further this week. Given current expectations, odds favor mortgage rates holding steady; possibly swinging a basis point or two in either direction."

Building a Dream Home

Simply Gorgeous! Check out this fantastic 5 acre lot I now have listed in Jessamine County. This lot can accommodate the home of your dreams and would be perfect for a walk-out basement. Chandamere is one of the best values in Jessamine County and this lot has some of the best views out there. In addition, the sellers have had the property perc tested and the results are on file in Jessamine County.

Why Lexington?

Relatives from Chicago just left the Mathews family from a few days stay over the holiday break. Their visit provided a great opportunity for my visiting neice-in-law and I to take a quick lunch and shopping break from our families -- it was a great reminder for me of the wonderful quality of life we have here in Lexington and Central Kentucky. We shopped small (For Friends and Peggy’s on Clay Avenue, two of my favorite local stores) and large (Macy’s at Fayette Mall – Kentucky’s largest mall) and had a great lunch out at Zuni’s on High Street.

As we drove through Lexington, we talked about how affordable and well-built our homes are, the diversity of our neighborhoods and how strong the public school my children attend is. Lexington’s great blend of big city resources with small town charm is truly special. While the Chicago relatives have a great lifestyle too, they really pay the price, quite literally, in terms of housing costs, taxes, commute times and crime.

I love big cities -- love to visit them, shop, tour and admire them, but when it comes to living, it's hard to beat the quality of life the Bluegrass affords. Central Kentucky has several wonderful colleges and universities, cultural and artistic attractions, excellent medical care, a temperate climate and the spectacular beauty of the Bluegrass.

It's a good place to visit and a great place to live!