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