furnace filter maintenance

I find that every time I have a buyer purchase a new home, I learn something new during the home inspection. This week's lesson came from one of my favorite home inspectors -- he's so thorough and a great home educator. He believes that the cheapest furnace filters, changed regularly, are the best choice for improving the functioning and life of your furnace. The more expensive filters have a tighter weave and don't allow enough air through the HVAC system for it to operate as well. He says the expensive ones can be like, well, having a dirty filter! Who knew! I suggest you ask your trusted HVAC professional about the right filter for your system before you rely on my information but the theory makes sense to me and I'm certainly always happy to save money!

buy & re-fi time

Hopefully you haven't been living in a bubble for the last week, but in the midst of scary stock market news, there's great news for real estate buying. Interest rates are lower than they've been in a year. Almost a full point down -- meaning it's a great time to look at savings you could capture through refinancing your current home or...take note first-time buyers--a great time to stop paying rent and start building your personal worth by investing in a home.

I always like to point out that owning a home is one of the only "real" investment strategies that serves multiple purposes: you invest your money AND you have a place to live. How cool is that! And remember, it's important to buy for yourself AND buy for future resale...but that's a whole other blog!!!

Third Street Stuff

Enough about real estate today! Let's talk how cool it is to live in Lexington.

Just down the street from Transylvania University (corner of Limestone and Third) is one of those little jewels of place that make living in Lexington so much fun -- Third Street Stuff. Full of interesting finds that delight 11-year olds and 40-year olds alike, this little gem of a shop and cafe is one of my favorite places to stop in for lunch. Third Street's cafe has a unique assortment of interesting sandwiches, salads and soups and tasty teas and coffees. The clientele is a great mix of folk from Transy, Sayre Upper School students and the odd Rastaferian. Last time I was there, I not only had a delicious lunch but also bought 2 super flashing rubber rings (one for me, one for my 11-year old), a whole bunch of buttons with odd sayings and a cell phone charm. I was sorely tempted to buy some giant magnetic words but came to my senses although I'm still thinking about the refrigerator poetry I could write.

Sooo....go downtown...have lunch...and enjoy Lexington's hipper side!!

What's important in your home

As I was running on my treadmill this morning I felt a little like our late gerbil Squirmy on his wheel. I wondered if God was looking down at me thinking, "how cute" just like we used to think of that little guy. Probably not...he didn't seem to huff and puff quite as much!!

My treadmill reminded me how important it is to think about the things that you really need and want in a house before starting the search for a new home. For us, having a dedicated place for exercise equipment (not that you can tell we use it) has been a real plus. We have a finished basement in our house that's been the ideal place to work-out, do crafts, play Dance Dance Revolution on PlayStation 2, and in general make a mess that no one sees unless we intentionally invite them downstairs. For us, we'll never live in a house again that doesn't have a basement or at least a finished bonus room.

If you're beginning to think about a home purchase, one of the best things you can do is take your own personal inventory of the spaces you want in your new home. Take stock for a week or so of what you love about your house and assess the things that you really wish you had in your home but don't currently -- fenced yard for a dog, 2-car attached garage, a particular location, ballroom -- and make a list of your wants and needs. As you work with your Realtor make sure you share your priorities with them. A good buyer's agent will help you use that list and those priorities to find the property that will make you glad to come home!

Economic news

I make it a point to keep up with the economic forecast, particularly in regard to our housing market. This week's news reinforces that it continues to be a great time to buy property. Interest rates are great and there's still a healthy supply of homes out there thanks to the media who have led consumers to believe that all of the US economy's problems are because of the housing industry. Interestingly, 95% of mortgage holders are making their mortgage payments on time. That's certainly not the portrait I see being painted in the news!

What I think is worth being cautious about is buying a new home without selling your current home in today's market. Unless you are secure and comfortable financially and two house payments won't completely stress you out, I wouldn't recommend purchasing your next home without having a solid contract on your existing home. It's important to weigh your options before making a commitment to two homes and talk over the situation with a trusted financial advisor and a Realtor whom you trust to give you a solid picture of your current market conditions and their honest opinion on how quickly they believe your current home can be sold.

Happy New Year!

It's a chilly chilly day here in Lexington and Fayette County schools are not in session which proves to my children that there really is a God. Our bedtime prayers last night included an intercession for a snow day along with a ritual wearing of the pajamas inside out! Ahhhh...January 2 really was too soon a day to start back after a wonderful Christmas break.

While I am working today from home, it's also turning into a great day to start putting away Christmas decorations. I'm going to see if I can't motivate my children to round them up for me like a scavenger hunt, have them bring them all into one room and then start packing away. It's also time to think about getting that tree out on the curb for city pick-up! Lexington has a great recycling program and I intend to be more conscientious than ever this year about reducing what goes into our Herbie. I hope you'll join me this year in reducing unnecessary waste and taking advantage of the opportunity in Lexington to recycle everything from yard waste to plastic water bottles.

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)