About Fayette County, KY

With three days left, the Keeneland fall sale was sobering

When selling on the 11th day of the 14-day sale was done, the cumulative totals weren't pretty: Gross was $187,076,600, down 41.41% from $319,287,900 for the same number of days in 2008; average was $73,536, down 36.25% from $115,350; and median came in at $33,000, down 45% from $60,000.

For the day, 245 horses sold for $2,504,800, down a staggering 59.62% from a year ago, when 276 horses sold for $6,203,400. The average price of $10,224 was down 54.51% from $22,476, while the median dropped 53.33% from $15,000 to $7,000.

Bluegrass Trophy Properties

I will make this short and sweet, which is unusual for me, but anyone either in the market to buy or sell, or a real estate professional has an opinion on this current first time buyer tax credit. Now to debate the actual effects of the credit, good or bad, or how it is or is not market manipulation or control at some level is beyond the scope of this post, no matter how well founded or accurate they may or may not be. But like the cash for clunkers this is indeed creating a real shift in demand at least in the short term. Again the long term effect will be another matter all togeher for another time. So here are the top 3 pros and cons as I see it as a real estate professional and a property investor. And my idea to continue the plan so there is no cash for clunker type hangover period should it expire as set to do so in a matter of weeks.

Pro's:

1. Stimulates many on the fence buyers to go ahead an purchase property now rather than later

2. Helps to reduce the inventory available and in theory stabilize prices in the target price range.

3. Gives real a tangible monetary benefit to the average person, not an untangible corporation or group

Con's:

1. Limited to the typical first time home buyer target market and price range which may not address problems that created the current climate

2. Artificial inducement to act may create hangover effect in the future and creates minimum expectation standard for the future, and which may arguably be the root of the problem in the first place

3. By creating a hard deadline creates problems by rushing to act by too much of a sense of urgency to act.

My solution:

Now the numbers are arbitrary and can and should be adjusted as required for area and budget reasons. But here is a plan I think could be introduced to extend and most importantly expand the current credit.

The Ty Brown Real Estate Stimulus and Recovery Act of 2009

- $8,000 Federal Tax Credit in the first year for ANY owner occupied purchaser to be given to the buyer similar to the same current guidelines, except open to ALL buyers.

- and additional $1,000 interest credit towards federal taxes for each of the next 6 years the purchaser remains in the home.

- $2,000 incentive to purchaser to make home more energy efficient should home be in need, again similar to current guidelines -or-

-$8,000 principal reduction credit for a current seller that must sell their home that in turn purchases a new home that will lower their monthly mortgage payment by at least 20%. Then they would not be eligible for the $8,000 credit but would be eligible for the $1,000 interest credit and energy efficiency credit.

So this would be a great deal for someone that wanted to sell their home and couldnt because the value has decreased. They could lower their price by $8,000, the buyer could still use the $8,000 toward the purchase, and both could go to a new home and use the remaining credits.

The two biggest hurdles are 1. Who would fund the $8,000 principle reduction, and 2. Again is this TOO much artificial stimulus in a open market....

I read a blog post yesterday that stated that realtors should try not to take responsibility for things that have no control over such as market conditions. In my next blog, I will show you one of the very best kept secrets in all of Real Estate that very very few people know or understand.

Bluegrass Trophy Properties

When You’re Blonde Enough Nothing Else Matters

Eight years ago my wife adopted a three year old blonde cocker spaniel. Kathy was won over by Abby’s big brown eyes and Jennifer Aniston haircut. Abby was, essentially, already full grown and set in her ways, but I have a hunch that Kathy wouldn’t have been much of a taskmaster. Kathy considers that having raised three pretty good kids, she’s entitled to a dog with challenging behavior. I keep telling her that Marley pioneered the acceptability of bad dogs. Kathy will only grudgingly agree that Abby isn’t exactly Lassie material.

Abby has never been terribly smart. She knows, “Want to go for a walk?” and “Want a cookie?” But any other command and Abby just blinks. Abby liked to run outside and explore our yard. With the heavy dew or rains she would come in thoroughly wet and still expect to sleep on the couch. The only sure way to get her to come was to call, “Abby! Cookie!” When we lived in Seattle Kathy regularly took Abby for walks on a long off-leash trail. Every day Abby happily jumped in the car, traveling to the trail. She would perch on Kathy’s lap. I shuddered every day thinking that Kathy would get a ticket, but she never did.

When we moved to Kentucky Abby got to come too. She rode in the backseat and would lean over to peer out the windshield. Did she wonder at all the different smells as we drove across the country? Does she miss our big backyard and the off-leash trail? One thing is certain: she no longer bears the Most Adorable Surrogate Grandchild status now that Sam and Caroline live near us.

Now Abby’s excursions are mainly walking around the block two or three times a day. She does patrol our yard for squirrels and evil cats (neither of which she has been able to scare away). She still comes (usually) with the promise of a cookie. Now her favorite place is to wait somewhat impatiently underneath Sam’s high chair, hoping that Sam will accidentally drop some of his food. Abby is very good with Sam and Caroline. Sam can throw a ball and hit Abby while she’s asleep and she just blinks and moves. Caroline can grab some of Abby’s hair and she just rolls over.

This weekend our son Andy and family will be adding a Newfoundland “puppy” (at 10 weeks old the “puppy” is already as big as Abby). Andy vows that HIS dog will be well behaved. We shall see.

The video section on Bluegrass Trophy Properties is providing an educational series of videos where Joe Riddell takes his lifelong experience as a horsemen and explains many of the main factors that need to be considered in the purchase of a farm.