Lexington, KY

Dear Friends in Lexington,

I want to ask you all to be objective about what you hear and believe in this current new world of real estate. Growing up in the Northwest often the news would be filled with the latest Sasquatch siting. The evidence including very grainy video, plaster imprints of tracks and of course an impassioned plea from the witness. After several decades of rumors and fantastic stories there a real sasquatch has yet to have been discovered.

The world of real estate right now seems to be filled with Sasquatch sitings. Dear friends in Lexington before spreading false information please ask yourself, does this sound like a sasquatch siting?

So many rumors, half truths and outright lies are being told right now about what is happening in real estate and especially in the area of distressed properties. Daily I read or hear something that is reported to be truth that isn't anywhere close.

I just finished listening to a webinar held by Alex Charfen the founder the Distressed Property Institue. Here are two of the Sasquatch sitings that were reported by realtors from around the US.

Sasquatch siting number one.

"Lenders do not approve short sales because they can get more money if they are able to foreclose on a home." The perpetrator of this mythe then proceeds to explain the lenders get more money by foreclosing because they get a piece of the 500 million dollar buyout.

Does this make logical sense? Many estimate the 500 million dollars would not last to pay off defaulted mortgages more than a few months. The purpose for the bail out money was to make more cash available to lend.

Sasquatch siting number two.

Realtors need to carry more E and O insurance if they work with clients helping them short sell. There is no foundation to this rumor. This is simply not true. This sounds like an attempt of some realtors to justify not working with short sell properties.

What can we do?

If you suspect you have heard or read of a Sasquatch siting in this new world of real estate would you please not repeat it and work to find the truth. Falsehoods just continue to feed the fuel of fear which has paralyzed our country. The truth always brings light into a dark situation. Please seek the truth.

Thanks, Paul

I hear this from home buyers quite a bit.  I'll bet a lot of agents here it too!  Do you have an answer for your buyer's. 

Are you increasing your liability by NOT recommending a private third part inspection of new homes.  What happens three years from now when your buyer is now your seller and the new buyer hires a quality third party home inspector.

Here's my answer: (the pages flip themselves or you can use the arrows to flip them.) (Click on the document to open it in a new window where it can be resized to be readable.)

 

Open publication

 

 

Protect yourself.  Get educated with a quality third party home inspection.  No, not that guy that was doing computer work last week and now decided to be a home inspector after his layoff.  Get a quality education on your new home.

Make sure you attend the inspection.  Some things just don't communicate well in written form and you'll learn a lot more when you have the ability to stand in front of something and ask the home inspector questions about it.

Today is going to be a little less educational and more personal impression.

There has been alot of talk about what the market is and whether or not it's a good time to buy or sell or refinance. Real estate is definitely a hot topic right now. What is my opinion?

First, about a week ago, I decided that I'm so tired of watching the national media focus on Detroit, Phoenix, and Las Vegas that I refuse to talk to anyone that mentions those cities. Those are the EXCEPTIONS to the market. Things aren't perfect, but we had 3 consecutive years of historical sales, it had to go down at some point.

As of last week, my new slogan is, I create "My Market." Since doing this, I have actually recieved phone calls on 4 different listing. One has already turned into an offer, I'm awaiting another offer, and I have two and possibly three showings for tomorrow.

Part of this is the practices in which I put in place and the state of mind that I have forced myself to be in. If you are going to be negative, the people around you will be. I don't see any reason for us to be negative.

It is the first time in history (that I can find) that has produced a buyer's market with interest rates BELOW 6%. What more could someone want? Especially a first time home buyer.

So next time you want to know how the market is, define the market. Because I'm determine to make "My Market" the best around in 2009.

This blog was written by:

Nick Ratliff, Realtor
Keller Williams Bluegrass Realty

Nick@FindMyKyHome.com

Your Center for Real Estate Information

www.FindMyKyHome.com

Another topic that so many home buyers get confused with is the mortgage. The first aspect of the mortgage that "we" the real estate community is guilty of throwing around some of "our language" is with Pre-Qualification and Pre-Approvals. What is the difference and which should you have when?

Pre-Qualification simply means that you have contacted the bank, either by phone, internet, or in person, and you have told them some of your personal information. With the information that you told them, the loan officer has ran those numbers through his/her computer and come out with a number that they think you could afford. There has been no verification of any of the numbers and typically your credit report has not been drawn.

Pre-Approval is the next step. This is when the loan officer has asked you to bring in paystubs, W2's, and bank statements and you have given them permission to pull your credit report. Therefore, all of the numbers you have given them is verified with very little left to confirm. Typically banks will do a verification of employment and of funds before closing.

So what do these terms mean to a home buyer? Or even a home seller?

I always like to make things as simple as I can, so this is how I explain it to my clients.

If I walk up to you and say I want to buy your car. I look at it and say, I will give you $20,000 for it. What's your first question, do I have $20,000?? Well no, but the bank will give it to me (right??). If I haven't don't have the loan ready, then you don't know if I can get money or not, but if I say, the bank is waiting let's go do the paperwork, which one excites you?

If you walk up to a home seller and offer an amount but tell them you don't know if you can get the money or not, it isn't that exciting and they aren't going to negotiate much on their price. Why should they, you may not even be able to get the money!

So in my opinion, the prequalifcation is merely for the home buyer. That let's you decide if you want to preceed with the process or not. If you are going to make an offer on a property then you need to be pre-approved. I high discourage my clients from making offers without a pre-approval. You won't get the best deal.

Be prepared and knowledgeable when you write an offer to purchase. Otherwise you can be leaving money on the table.

This blog was written by:

Nick Ratliff, Realtor
Keller Williams Bluegrass Realty

Nick@FindMyKyHome.com

Your Center for Real Estate Information

www.FindMyKyHome.com

Have you been worrying about how you can make your payments? I recently met a man at the mall who had arranged with his lender to postpone two payments. He has working feverishly trying to find a way that he doesn't have to declare bankruptcy and/or lose his home to foreclosure.

I explained to this gentleman that he also may have the option of short selling his home. He was very interested in talking with me and I was able to hang around between the customers he was serving and explain enough to him that he is eager to have a consultation in his home.

I have been preparing myself to help families avoid foreclosure. I became a Certified Distressed Property Expert just a couple of weeks ago. I am one of only a few realtors in Lexington with this designation. It is my passion and goal to help 50 families here in Fayette County avoid foreclosure.

All of us are affected when someone else loses their home. Foreclosed homes depress the value of all of our homes. Empty homes are often places that are easily vandalized and places of illegal drug exchanges. But most of all the shame and disgrace families endure during a foreclosure should make us all want to help our neighbors.

How can we all help?

First of all be honest about where you are with other people. If you are willing to be transparent with others about how you are doing financially you will become a safe person for other people to share with.

Almost always foreclosures happen because people are ashamed and embarrassed to admit they have a great financial need.

Even in the bleakest situations if you start working with the lender early enough you have a very good chance that you will be able to short sell your home. You hear from the news occasionally that short selling is the same as foreclosure. This is reporting at its worst!

There are a bunch of ways in which short selling your home is so much better. I will not cover all of them in this post but will get to them all in a series of post. If you are anxious to get a quick overview of the basic differences in short selling and foreclosure go to my web site and read the chart that highlights the major differences. LexingtonForeclosureRelief.com

A key difference in how foreclosure and short selling your are are different is on how they are recorded on public records. Foreclosures will be publicly reported and follow you you are for ten years or more.

That means if you need any kind of security clearance for your current job you can be terminated immediately. If you want a career in civil service, the military or police work you will likely be disqualified with a foreclosure history. Your job in many cases can also be terminated if you already have a security clearance.

When you short sell your home there is no specific reporting. I will work with the lender toward getting a complete release from your debt without any record of your short sell. However even if the lender does not cooperate they cannot post your short sell on public record.

I am urgently encouraging everyone in Lexington and Fayette County to diligently share with your neighbors and friends your financial status and concerns. If we will open up our neighbors will open up and we can help hundreds of Lexington families begin to put their lives back together rather than seeing them shattered by foreclosure.

I am asking us all to get involved and help our neighbors these coming years. The experts report the housing crunch will be at its worst in 2010 and 2011. Let us diligently seek to help our neighbors in 2009. Thanks very much, Paul