Are Today's Homes Undervalued?

With all of the Foreclosures and Short Sales going on the question now is are today's homes undervalued? I Just read a great article on this subject in the Realtor's magazine and there research is interesting.

Lawrence Yun Chief economist of the National Association of Realtors states:

"The median national home price today is about $169,000, down almost 14 percent from a year ago and an estimated 30 percent from its peak. It's safe to say we've reached the point where prices are justified by the fundamentals of the economy and may even represent an undervaluation."

This undervalued properties is creating a problem for homeowners that have great credit good income from being able to qualify for a great refinance package. Mainly because the image that is being created is showing that there homes may be underwater regarding value. Now this will more than likely settle down but it might be the new norm for awhile.

Here is some more from Lawrence Yun Chief economist of the National Association of Realtors:

"What's clear is that the challenge today is getting credit moving again for everyone. Until then, markets will continue to be distorted by the disproportionate number of short-sale and foreclosed homes for sale."

$8000 Tax Credit - Criteria to Qualify For Tax Credit Worth $ 8000 on First Time Home Purchase

O.k. So you have heard about the $8,000 dollar tax credit. So how do you get that free money? Read this article from www.ezinearticles.com.

President Obama has announced the Stimulus Package worth $ 787 billion that is meant to save people's home and allot them new ones. This package would help the US people through grants, tax relief, state & local fiscal relief, loans, etc. As President Obama explains, 'the stimulus bill would help the US people clear their debt levels and lead a hassle free life.' The grants are available for all day to day requirements like food, clothing, home, education, debt clearance, etc. Out of this sum, the amount set aside for the first time home owners is $ 2 billion - $ 8 billion. These would come as grants as well incentives for the home owners. With this package, the first time home buyers can enjoy tax credits $ 8,000.
Here are some points to understand $8000 tax credits and their eligibility criteria:
. It is only available to the first time home buyers.
. Tax credit is not a loan. One does not need to pay it back. But that is subjective. In case the home is sold off with in 3 years, the $ 8,000 tax credit must be re-paid.
. Tax credit requires the home buyer's tax liability. In case the buyer's liability is less than $ 8,000, the remaining credit would be issued as a check.
. The home purchases must only be for a primary residence.
. It is only available for the homes that are purchased between January 1, 2009 & December 1, 2009.
. The single persons with an income of $ 75,000 or more are not eligible to get this tax credit.
. The married couples whose joint income is $ 150,000 or more, they do not qualify for this tax credit.
. The tax credit is not eligible in case the seller is the buyer's relative.
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Article Source: http://EzineArticles.com/?expert=Eric_Darby

Alright now you know if you can get this money. So now it's time to get started! Visit www.somersetliving.com to start your search for that new property! Thanks!

Somerset and Lake Cumberland Feb. Real Estate Report!

Well there has been a few changes in the past month, and the repor below will reflect on some of those. Please take a look and see what you think about Somerset & Lake Cumberland's Real Estate future.

Here's your Feb. 2009 Report:

I will be listing 2009 first followed by 2008's.

Number of Homes Sold: Feb. 2009 32 / Feb. 2008 46

Number of Lots & Acreage Sold: 10 / 13

Average Closing Price: $124,947 / $100,300

Average Days on Market Residential: 141 / 193

Average Days on Market Lot & Acreage: 163 / 129

Difference of Sales Price- % of Current List Price Residential: 91.05% / 92.53%

Difference of Sales Price- % of Current List Price Lot & Acreage: 90.95% / 85.71%

Sell Price Total Residential: $3,170,845 / $4,570,920

Sell Price Total Lot & Acreage: $355,000 / $488,500

Number of Residential Homes on the Market: # 930

Number of Lots & Acreage on the Market: # 1042


If you notice that some of the numbers are lower compared to last Feb. But also by the looks of these numbers home's with a higher price compared to last year are selling better. Take a look at the Average closing repoprt above. Are average closing cost is up $24,647. So either home values are going up, or we just have some really good agents out there doing some good negotiating.

Also take a look at the Average Days on Market report and you will notice that homes are staying on the market for less days. So maybe it's getting a little bit easier to sell?

Well please take you time and read through these reports to get an idea on what is happening here in Somerset Kentucky regarding our real estate market.



I hope you find this helpful! Thanks and have a great weekend

Adam Gullett

www.somersetliving.com

Zillow's Report!

Zillow.com has just sent me an email on the Real Estate Market Trends in Somerset, and I thought you all might like to hear what they had to say.


Their report said that home values in Somerset decreased -5.6% in the fourth quarter of 2008, compared to the fourth quarter of 2007.


And that Nationally, home values decreased -11.6% during this same period.

Even though prices continue to decrease in Somerset Kentucky, we can feel a little more confident that things are going a little bit better for us than some.


I make this post not to discourage, but to keep people informed. Don't go and call all your friends and family and tell them that the world is going to end, because as long as people continue to focus on how bad things are, the less likely we are to make things better. We need to learn from our mistakes, not dwell on them!





Take care! Be positive! And remember you still have your family!

What Is Involved In Making An Offer On A Home?

A purchase offer is a written document submitted by a prospective home buyer to the seller of a residential property. This legal document is executed once an individual is bent on purchasing the home he or she would like to live in or would like to have as an investment. But the process only begins there as negotiations between the seller and the buyer will still be involved to make sure that every detail is to their liking.

When a homebuyer has set his or her eyes on a certain property, he or she may work with a real estate agent and fill up a purchase offer form or make one themselves that will be based according to their terms and conditions. If a buyer doesn't want to get an agent, he or she should consult with a real estate lawyer on this matter.

In the U.S., real estate laws vary from state to state hence, it is advisable that a buyer check out the standard form in his state. Learning about this legal form beforehand is the right thing to do as it will help one understand the items that need to be specified in the document.
In writing a purchase offer, one of the important things a buyer needs to include are the fixtures that he or she wants to stay or get rid of in his future home. Specifically, the fixtures here refer to the things that are attached permanently to a residential property such as kitchen cabinets as well as heating and cooling systems. A house listed with a multiple listing agency would usually state what items the seller wants to sell with his or her house. If there are decorative items that a potential buyer would like to stay, then it should be noted in the offer. Other items that might be included are the outdoor storage buildings, windows, light fixtures and garage door openers.
A purchase offer must be based on the property's present condition and the items that a buyer expects to be included or rid of. After a seller reviews the offer to purchase, the negotiation between the two parties starts.

Of course, a seller may not totally agree with the buyer's terms and conditions upon receiving the first offer. He or she may just cross out some of the items not amenable to his terms and should put his initial on the changes. Otherwise, if a seller disagrees with the whole offer, he or she may propose a counter offer.

Apart from the fixtures, other items in the offer that may involve some haggling are the purchase price, the party responsible for paying the closing costs, the closing date and delivery of title and the date the seller needs to move out from the property.
Several counter offers can be exchanged during negotiations but the final contract can only be reached once both parties agree to the modifications in the offer and put them in writing. When the document is signed by the seller and the buyer, the purchase offer becomes legal.

This article is brought to you by LegalHomeForms.com Download over 60 of the most used real estate forms and contracts. Find forms like the quit claim deed, or offer to purchase real estate form.
Article Source: http://EzineArticles.com/?expert=Gloria_Smith

Failure is O.K. It's part of LIFE!

"Failure is simply the opportunity to begin again, this time more
intelligently"
-Henry Ford-

Sometimes life throws things at you that you were not expecting, and
when you have to walk through those things it leaves you feeling like
you have failed yourself, your family, or your friends. But just
remember that life is a journey of mistakes, and growth. As long as
you learn from your failures and get back up and try again, it will
get better, and you will make it through!

Just thought someone might need to hear this!

Adam Gullett
Homestead Real Estate
(606) 219-5122
adamgullett@gmail.com
www.somersetliving.com

Sent from my iPhone

Projects To Boost Appeal

In the December 2008 Realtor magazine, they ran an article about the
best projects that bring the greatest return on your money. They did
this using HomeTech Information Systems, which is a remodeling
estimating software company in Bethesda, MD.

I am only going to show you what they thought would be the best return
for your money in the state of Kentucky

(These projects are based on midrange homes.)

Additions:

Back-up Generator.
Job cost: $12,820.
Resale Value: $8,957
Cost Recouped: 69.9%

Bathroom
Job cost: $33,468
Resale Value: $23,255
Cost recoup: 69.5 %

Deck (composite)
Job Cost: $14,285
Resale Value: $10,237
Cost Recoup: 71.7%

Deck (wood)
Job cost: $8,903
Resale Value: $7,588
Cost Recouped: 85.2

Family Room
Job cost: $70,536
Resale Value: $48,661
Cost Recouped: 69.0

Garage
Job cost: $49,954
Resale Value: $34,779
Cost Recouped: 69.6

Master Suite
Job Cost: $89,283
Resale Value: $60,827
Cost value: 68.1%

Sunroom
Job Cost: $66,572
Resale Value: $39,147
Cost Recouped: 58.8

Two-Story
Job Cost: $131,511
Resale Value: $94,791
Cost Recouped: 72.1%

Remodels

Attic-to-bedroom
Job Cost: $42,277
Resale value: $33,749
Cost recouped: 79.8%

Basement
Job cost: $53,552
Resale: $44,924
Cost recouped: 83.9%

Bathroom
Job cost: $14,413
Resale: $11,973
Cost recouped: 83.1%

Home Office
Job cost: $26,494
Resale value: $26,494
Cost recouped: 60.5%

Kitchen (major)
Job cost: $53,150
Resale value: $41,260
Cost recouped: 77.6%

Kitchen (minor)
Job cost: $20,307
Resale value: $16,461
Cost recouped: 81.1%

Replacements

Roofing
Job cost: $16,594
Resale value: $10,657
Cost recouped: 64.2%

Siding (vinyle)
Job cost: $8,994
Resale value: $7,610
Cost recouped: 84.6%

Window (vinyle)
Job cost: $9,529
Resale value: $7,438
Cost recouped: 78.1%

Window (wood)
Job cost: $10,405
Resale value: $8,037
Cost recouped: 77.2%

Even though the cost of doing a project and the resale value don't
show profit, a person's home is still one of their best, and most
solid investments.

Also you don't really do home projects (at least most of the time)
because you are thinking about selling. But you do it to make it the
way you want it. So remember that!

And finally, the main reason you do these projects, is to make your
property stand out above the rest, and give it that true curb appeal
that sells your house.

Adam Gullett
Homestead Real Estate
(606) 219-5122
adamgullett@gmail.com
www.somersetliving.com

Sent from my iPhone

How Much Did You Say The WHITE HOUSE IS???

I just read an article about the White House and what they estimated it is worth, and I thought I would pass it along to you.

This report comes from zillow.com.

"Zillow publishes free data and Zestimate values for 84 million homes across the country - that's more than 90 percent of U.S. homes. We thought it would be fitting to provide a Zestimate value for the most famous U.S. home of all as president-elect Obama and his family prepare to move in," said Stan Humphries, Zillow's vice president of data and analytice. "Obviously the White House will never be for sale, but given the immense amount of public data on this home, we thought it would be fun to crunch the numbers and say, 'what if.'

Ok. first things first. The Zillow statisticians had to look at the physical aspects of the White House to get started. Here's the stats:

The White House sits on 18 Acres of land and has 55,000 square feet of living space, with 132 total rooms, and of those rooms; 35 are bathrooms, 16 are bedrooms, and 3 kitchens.

They came to the amount of $308,058,000

O.k. so now you can begin to get the scope of how big this house really is!

Well the zillow team didn't stop their here's what it would cost to own that house:

They ran the numbers, and if someone was to take out a standard 30-year, fixed-rate mortgage on the White House with a 20% down payment, and a 6% interest rate, their monthly payment (including principle and interest) would be $1.48 million a month.

Just pocket change!

Don't Forget Your Tax Write Off!

Thought I would just send out a quick reminder for everyone to be and
sure and include your property taxes in your tax write-offs. Also if
you own a business and have an office in your home be sure and talk to
your CPA, or tax advisor about other real estate tax write-offs.

Also come back soon, as I am going to be posting a few articles on
preparing an offer to purchase real estate contract, and things you
should know before you do.

Adam Gullett
Homestead Real Estate
(606) 219-5122
adamgullett@gmail.com
www.somersetliving.com

Sent from my iPhone

Jan. 2009 Real Estate Report

Starting in 2009 I am going to start posting reports on Somerset Kentucky & Lake Cumeberland real estate on a monthly basis. I will be comparing with the month's of the previous year to the current year so you can see what the real estate market is doing in our area.



So here's your Jan. 2009 Report:

I will be listing 2009 first followed by 2008's.

Number of Homes Sold: Jan. 2009: 25/Jan. 2008: 37

Number of Lots & Acreage Sold: 4/6

Average Closing Price: $103,687 / $131,723

Average Days on Market Residential: 219 / 181

Average Days on Market Lot & Acreage: 448 / 213

Difference of Sales Price- % of Current List Price Residential: 93.45% / 91.33%

Difference of Sales Price- % of Current List Price Lot & Acreage: 90.18% / 97.82%

Sell Price Total Residential: $3,264,600 / $3,711,100

Sell Price Total Lot & Acreage: $237,900 / $363,800

Number of Residential Homes on the Market: #894

Number of Lots & Acreage on the Market: #1034


As you can tell our numbers are a little lower than last year, but as a Realtor let me tell you we are begining to see a pick up in house showings, calls, and buyer traffic. You have heard of supply and demand well, we have the supply of properties, just not the demand for them.

But let me tell you this, there might never be a better time to buy than right now! You may never see the interest rates as low as they are, combined with plenty of homes on the market to choose from. That combination should be enough to get you out there looking!

Think about it, right now with there being so many properties for sale, you as a buyer have the upper hand on negotiating a deal. And on top of that you get a great deal on financing too!

I hope you find this market update helpful, and feel free to contact me if you have any questions about the information in this report.

As always, "thank you" for reading my blog, and have a great day!


Adam Gullett
Homestead Real Estate
(606)219-5122
adamgullett@gmail.com
www.somersetliving.com

Thought For Today

"Sometimes we feel that we've got to climb a mountain or raise a monument to leave our mark on the world. What we fail to recognize is that often we make a difference simply by existing, by handling what life gives us. Maybe the way we deal with our challenges and our rewards inspires someone else to achieve worthwhile things in their own life."

--Blaine Lee, Inspirational Author and Speaker

Stage Your Home to Sell

Do you remember when you went out looking at homes, and you saw that
picture of that home that looked so pretty that you just had to see
what the inside looked like? So you call your Realtor and schedule a
walk through. You pull up to the property and the first thing you
notice is; this is not the house I saw in the picture!

The bushes are way over grown, the house number is barely hanging on
to the house, and the owners have let their trash cans overflow with
trash, right in front of their house.

Then you go inside, only to find out that you can't even tell what the
house looks like because there is so much stuff everywhere. And it
doesn't even look like they clean!

Well if you haven't, I have! And let me tell you, those properties are
hard to sell!

So let me give you my five steps on what someone should do to make
their house sellable.

Step 1: If you have overgrown bushes trim them down, clean up the
front yard of all distractions that take away from the curb appeal!

Step 2: Go knock on your neighbors door and have them stand at the
curb and let them tell you what they hate about the outside of your
house. (trust me they would love the oportunity.) and then do what
they say!

Step 3: Take that same neighbor inside (or get a new one if your
current one doesn't give you honest answers) and have them let you
know what they like and hate about the inside.

Step 4: Go through your house and: clean it, paint it, replace
anything that needs to be replaced, light it up, hide the junk, bring
in some plants, and rearange your furniture so rooms feel larger.

Step 5: Now go and get your neighbor that you used before and now ask
them to buy your house!

Well there's my steps on how to stage your house to sell.

Now go and do it, and give me a call to list it!

Adam Gullett
Homestead Real Estate
(606) 219-5122
adamgullett@gmail.com
www.somersetliving.com

Sent from my iPhone

Serving the Somerset Kentucky & Lake Cumberland areas in their real
estate needs

Be positive, and go buy a house!!!

I don't know about you but I am sick and tired of the news controling
everything people do. THINK FOR YOURSELF!!!!

If everyone in the United States would start thinking and talking
about positive things, and put there money into the market, then maybe
just maybe we could start getting ourselves out of this mess. To those
of you out their that has money ready to buy, don't wait, now is the
time to buy! Interest rates are down, still great financing available,
and there's still a lot of houses on the market with sellers ready to
look at all offersl. So why wait!

Let me tell you a little bit about my town Somerset Kentucky. We are
known as a tourist town, lake community, and a tri-city area. If you
have ever wanted to live in a house with a lake view, but never
thought you could. Then you need to come and check our our town, with
everything I just said above, don't you think you might be able to buy
that perfect house with a view now?

So let me finish off this post by saying; next time you come across
that person that has been watching all the news about how bad
everything is. Look him in the eye and say; I don't know what your
talking about, I just bought a house, cheaper than ever, with a really
great interest rate!!!

Adam Gullett
Homestead Real Estate
(606) 219-5122
adamgullett@gmail.com
www.somersetliving.com

Sent from my iPhone