Ton A. Ali, Realtor - Broker Associate, Buyer's Representative

Ah first time home buyers, they are as different as snowflakes...sorry about that, but I just met a very nice young lady that works for local caterer. I was picking up food they donated to feed the masses at the local public radio station during the fall pledge drive (www.louisvillepublicmedia.org) and mentioned that I was a realtor. That usually starts some sort of conversation about the housing market or the buying process. She said that she was just settling into a more financially stable lifestyle with the steady day job and thought it would be nice to own a home. When I inquired as to why she isn't currently pursuing that goal and she told me that she has tried to be financially responsible and never relied on credit. She always budgeted her money and lived with in her means. Although she's been financially responsible, she had become part of a group of potential borrowers that don't have bad credit they have no credit.

That is sometimes an issue, but there are lenders that think of no credit as good credit. There are other things lenders can look like leases and utilities. Just because you haven't had any credit cards or installment debt, don't just assume that nobody will give you a loan or a mortgage.

Just like in healthcare, when you get to a certain age your doctor may recommends that you have test done that gives him a baseline for your good health. If you have an issue he can test you again and the differences can assist him in diagnosis. Your financial health is similar. Find someone you trust, a banker at the branch you frequent, a mortgage professional or financial advisor. Let them look at your credit report and get a baseline of your financial health. From there they can advise you to work on certain aspects of your financial life to assist you in meeting the goal you have both near term and long term.

You may be ready and able to buy a home now and now is a great time if feel strong about your employment future and you don't have anything to sell first (first time home buyers). You could have great leverage in a buyers market and find a real value on that first home.

I promise that I would try keep these up to date for you. Here is the latest. I think after the elections and as the financial markets settle a little, we should see better numbers.

Still a good time to buy.

Statistics

LISTINGS Residential (Single Family & Condo)

October 13 - 19 , 2008 497

Last Year 622

SOLDS

October 5 - 11, 2008 193

Last Year 193

I have a client that is just settling into his new home. When we put the offer on the house, one of the sections in the 6 page contract dealt with an installed security system. The section has a check box to indicate if the system is owned or leased and if you want the seller to leave it or not. Usually if it is leased, there is some contract on it and if that doesn't convey, then they can take that equipment back. Not something people want to deal with as they are moving in. If the system is owned by the seller, then the security company cannot come back and take the equipment. They sellers owned the system, but just like you own your cell phone. You can do what you want with the phone but that two year contract is yours, period. That is how you get a $500 phone for $99.

In our situation, we asked that if it was owned, we want it to stay. Over the inspection period the buyers and sellers met one day at the house because the buyers were also purchasing some furnishings from the sellers outside of the real property transaction. During that meeting the sellers showed the buyers the equipment and indicated that there was still a contract for monitoring. The buyers indicated that they would probably continue the monitoring after the sale. The seller didn't think much about it, but they were bound to that contract regardless of the buyers' decision to continue the monitoring. Nothing was put in writing or added to the closing statement.

As it turned out, my client decided not to continue the monitoring. The sellers were then contacted by the security company asking them to fulfill the contract with a payment of just over $800. They were bound to the contract because they were given the equipment. The security company could not get the equipment form the new owners, but they could hold the previous owners responsible for the cost.

It all ended well because both parties were understanding and respectful. The new owners were happy to let the previous owner take the equipment so it could be installed in their new home and their contract could continue. But they didn't have to. If it is not in writing, there is little recourse for a seller to recover.

So make sure you are reading that contract carefully and the person you choose to represent you is aware of any contracts that may or may not convey with ownership. They can easily be handed during the offer phase and before closing.

These were not first time home buyers, but people sometimes fail to recognize that the average homeowner buys or sells every 7 years. It is difficult to be proficient at anything if you do it only once every seven years. Full-time professional Realtors are involved with these issues every day. Don't be unrepresented. I could cost more than you think.

What a beautiful weekend. For those of you who live in the Ohio Valley the weather here was unbeatable, especially for tailgating.

I spent the weekend in Real Estate. Showing homes and previewing a couple for a couple. This couple are first time home buyers and are really ready to buy. Even if they haven't saved 20% like there forefather or grand fathers, they have put some money back for closing costs and they are smart about their budget and how much home they want to buy.

I was reading in a professional publication sent to me by REBAC for Accredited Buyer's Representatives and there was an article about how it so the right time to buy, but people still aren't.

I thought the article was great, but as we know Real Estate is local. Although prices have dropped here, they haven't crashed the 30-50% some like places you read about. But still the rates are relatively low and the market is saturated with nice homes as well as some junk (opportunity) houses. For investors I think we are in for a rise in renters who where hoping for one of those easy mortgage to get them into the game. Even though that party is over, my couple are actually getting 100% financing through FHA and KHC.

The opportunities are still there for those of you who have worked hard to keep your financial house in order. If you are ready to buy, now is really the time and I would like to help you. If you're not sure, then call me and sign up for a First-Time Home Buyer Seminar. We hold them regularly. When I say we, I mean myself, a seasoned mortgage professional and a home inspector. Come and get first hand information that you can use to get in the game and start building real wealth for yourself and your family.

To help people keep up with what is going on in our market; I have decided to post current Listing and Sale statistics from Greater Louisville Association of Realtors. I will try to do this weekly; we will see how it goes.

As you can see, our local sales are not down 50%. Sales are down and the sales most likely reflect lower prices, but we are still selling homes. Remember all Real Estate is local; call me if you want to know what is happening in your neighborhood.

Here they are for the week ending 10/12:

Statistics

LISTINGS Residential (Single Family & Condo)

10/6 - 12, 2008 545

Last Year 620

SOLDS

9/28 - 10/4, 2008 325

Last Year 309