Tips For Northern Kentucky Home Buyers.

Consider the tips below to make your home buying process a good one!


Get Pre Approved: It is smart to get a pre-approval from a lender so that you are clear on how much financing you can get for the home. Make sure your lender is pulling your credit and verifying your income. With a firm pre-approval you can put in an offer without fear that your financing could fall through. In todays world few sellers will consider an offer without one!

Your Down Payment: With a down payment of at least 20% you can avoid costly mortgage loan insurance. Consider deferring home ownership until you’ve saved the 20% and find ways to fund that down payment.

Know Your Ratios: Financial institutions have rules and ratios when granting credit. The amount they are willing to lend you might be more than you can afford without compromising your desired lifestyle. It pays to do your own number crunching to see what you can afford each month.

Are You Ready To Become A Contractor: About 30% of homes currently for sale are distressed sales. Many are in need of major repairs or renovation. Before inking that "great deal" consider the cost and time that will be involved in making the home the way you want it.

Beware Of A Bidding War On A Property: Many of the homes for sale require bids being made in advance of a sale. Beware of getting into a bidding war on these properties. In a bidding war on say a HUD home you could pay more than the appraised value. This means you might need more financing and the down payment you had might be insufficient to avoid mortgage loan insurance. Don’t make a firm offer in a bidding war unless you are sure of your financing and the true value of the home.

Insure The Risk: Almost all loans require lender insurance yet if your family relies on your income to make the mortgage payments, then you need life (and possibly disability) insurance. This is usually an option when you sign up for your mortgage but consider applying for your own policy through an insurance agent, which could save you money and provide flexibility for your future needs.

Look At Payment Options: Review your financing options to make sure they meet your cash flow needs and long term goals. Consider a shorter amortization period and increase the frequency of your payments from monthly to bi-weekly or weekly to pay off your mortgage faster and save thousands in interest costs.

Keep Saving: Just because you have saved enough for a down payment and bought your home doesn’t mean your saving days are over. Make sure you have an emergency fund and try to stash away some income for the inevitable upkeep - and surprises - that comes along with home ownership

All The Best,

Herb Johnson
859-372-8019 Direct Line

Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website
Buyers and Sellers wanted. Referrals Appreciated!

4895 Houston Road
Florence, Kentucky 41042

Consider the Condominium: Tips for Success

Consider the Condominium: Tips for Success


Whether you are a first-time buyer looking for a low-cost way into the housing market, purchasing your next home, or a veteran home-owner purchasing a vacation home, a condominium is definitely worth your consideration. Condominiums can provide you with a viable way to share the costs of maintenance and upkeep of a home, afford you more security, provide you with lifestyle amenities, and offer other conveniences that come with living in a defined community.

It is, however, important to understand the unique issues that come into play when purchasing a condominium. Here are some tips that will make you the best buyer you can be.

Learn About The Building And Structure - Just like purchasing a single-family dwelling, you should know some details. Find out when your particular condominium was built, and by whom. Learn about the history of the structure, when it was renovated or updated, number of previous owners of your unit, if it was rented out, and anything you can learn about it via public record or word-of-mouth. Find out about the roof, wiring, appliances, foundation, heating and cooling equipment, plumbing and other systems that will affect you on a day-to-day and seasonal basis. Understanding the history, planning, how the structure fits into the complex and other physical details is a first step in knowing what you are buying. It is also wise to look into issues around land and landscaping, including drainage and other elements that might affect your investment, like wetlands, large trees, and proximity to sensitive areas like cliffs or fire prone areas. If your condominium is more likely to have issues, you would want to know about these possibilities in advance.

Learn About The Condo Association Or Governance Structure, And Who Manages The Building Day-To-Day - Your happiness and satisfaction might depend on a group of people or a management company that does not work within your standards of excellence. If the organization and management can be easily manipulated or changed, maintenance or other important issues might be mishandled. Get a feeling of the overall satisfaction with this structure and understand your level of involvement in participating with it. Reviewing the Board of Directors meeting minutes for the past year will help expose any "issues" needing resolution. These minutes should be available to review, and will provide black-and-white evidence about the nature of the group and how decisions are made.

Read The Fine Print - Ask to see any paperwork that you would be signing prior to purchasing a condominium. These documents give you insight into rules, obligations and running of the building or complex. Don't hesitate to bring it to a real estate lawyer, or at least to go over it with your real estate agent, if you have thoughts or concerns that should be made clearer to you. It isn't just "mumbo jumbo" - these are legal documents that should be designed to protect you and your new neighbors. These documents might also spell out who is responsible in certain situations, or have big holes where things were overlooked. Before you buy is the time to ask questions. It is common for these documents to take days to review, so you need time. Don't wait for a day or so before your closing to read them - ask for them as soon as you go into escrow.

Know What Else To Ask - Also review the condominium's financial statement, including annual budget, (for the past few years) and ask about a reserve fund study and understand the reserve fund account. Ask for a list of special assessments levied over the past decade, as this tells a lot about how realistic the operating budgets really are. Does this condominium association do adequate work to ensure that everyone's investment is safe and secure, avoiding assessments that are the result of poor planning? Look at how much is in the reserve fund: experts recommend avoiding a purchasing a condominium if the reserve fund is funded less than 40%

If you are unclear about this, get a second opinion from someone you trust. Ask to review the certificate of insurance, the summary of the association's policy. You are checking to see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Additionally, you will want to be sure that the policy has a building-ordinance clause, ensuring that the insurance will cover the cost of bringing the building up to code in the event that any rebuilding needs to be accomplished. When insurance or the reserve fund is inadequate, you are responsible for assessments on the repairs. Buying a great condominium in a fiscally irresponsible complex is a bigger risk, and in the event of a large capital expense, like a new roof or the failure of complex mechanical systems, you could be facing large assessments.

Learn The Rules - When you buy a condo you agree to live by the rules that govern the building and community. This includes how the land and outdoor spaces are used and could even limit what you store in public site. Rules often govern whether units might be rented or how many rentals might be allowed at any given time. Understanding the rules around use of amenities, parking, working on a car, noise, business use of the unit, storage areas, restrictions on renting the unit or on guests - all should be clear from the beginning. before you buy, rent or move in. And if your lifestyle or intended use of the unit is going to be affected by these rules and regulations, be aware of that.

Understand Obligations - Condos come with obligations; they might be Home-Owners Association dues, additional fees for maintenance or insurance, parking fees, waste disposal fees, pest control fees, or a commitment to do or not to do something in your unit. Understand these obligations before you buy or rent, as they are not negotiable. In tight economic times, what happens if you or your neighbors get behind in these fees? Fees can go up to cover necessary expenses, and you might have to cover a negligent neighbor. Your obligations when conducting a renovation or remodel are particularly important to know - so that you can save time and frustration later. Remember, if you purchase a condominium, you also have to consider outside obligations like property tax.

Sneak A Peek At The Surroundings - Keen observation of the state of the parking facilities, hallways, common areas, any neighbors you might see, and the surrounding neighborhoods might help you to understand how you would feel living in close quarters. Try to determine the demographics of the development you are considering. Is it diverse, or does it serve a special community? How would you and your family "fit" not just in your unit, but in the community that a condominium complex naturally creates? Understand the effect that the size of the building and complex will have on your lifestyle. Is it a "party" place, or family oriented community? Are most of the units owner-occupied or rentals? All the rules of house-hunting apply, but more than ever, learning about the personality of the place will help you to determine your over-all satisfaction with your purchase.

Be A Detective - You are entering into a potentially long-term relationship with a building and a group of people - so it is not weird to want to know all that you can going in. Your real estate agent and a real estate lawyer can help you to learn more about the background of the condominium you are considering and whether this particular unit would be right for you. Public records are available, often online, to help you in your task, too. In addition to learning about your investment, you will gain insight into problems that might have occurred in the past and how they were handled. You want to hear the bad along with the good.

Don't Be Fooled By Low Home Owner Association Dues - When Home Owner Association dues are low, the deal looks attractive - but if the reserve fund is not being adequately funded, you might end up with special assessments to cover necessary repairs. In fact, if you have low dues, planning your own reserve fund to cover potential assessments is not a bad idea.

Look At Your Needs And How The Condominium Will Meet Those Needs - If you are disabled or have special needs, look into how these needs will be met, and if your condominium complex has issues that could come into play. There are books and watchdog groups that address these issues, but only YOU can understand your particular situation. Even if you are not disabled, understanding special needs is another way of gathering information about the personality of the condominium complex, and will aid your understanding of the parameters if you need to do any modifications to your unit in the future, should a need arise.

All The Best,

Herb Johnson

859-372-8019 Direct Line

Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website

Buyers and Sellers wanted. Referrals Appreciated!

4895 Houston Road
Florence, Kentucky 41042

Buying A Home During The Holidays In Northern Kentucky.

The holiday season is fast approaching once again. In Northern Kentucky that often means cold weather, rain, and snow. Yet the weather and a few holidays won't keep a good buyer down. There are great deals to be had in this part of the country during the holiday season. Buying a home doesn't always happen on your schedule. It may take weeks or months to find the perfect house. Maybe you need to move suddenly because of a new job opportunity, or to be closer to elderly parents. Buying happens for many reasons and the point is it is during every month of the year, not just the warm ones. Still, buying a home during the holidays can be challenging if you're a family. If you have children, then here are some tips to make a move during the holidays a big deal in a good way!


Children usually follow the lead of their parents. If you are depressed about missing out on family holiday traditions or make daily comments about the bad luck of buying during the holidays, your children will likely pick up on this. First step is to adjust your attitude by focusing on the positive aspects of the move.

Second, get the kids involved. Will the childs new room be awesome? Talk up all the great parks, restaurants, and attractions of the new location over meals when the family comes together. Older children may be more hesitant, especially if you're moving away from their school or friends. Do research to find out more on malls, sports teams, and youth activities that your child may be interested in. Also consider rewarding children for good behavior during a move. Let them select the decor for their new room or have one extra pizza night this week.

Communication is key for getting through a move, regardless of the time of year. Have a family meeting to discuss concerns and fears or have one on one talks with each kid to assess their feelings.

Finally, make every attempt to keep traditions alive. This is important for adults and children alike. If your family loves having a Christmas tree, then you might have to set it up twice this year, once at your current home and then quickly again when you first arrive in your new home.

Boxes and chaos aside, you can still sit down for a fun family dinner or for an evening of singing songs and opening presents. Keep your traditions alive and your move this holiday season will be an easy one!

All The Best,

Herb Johnson

859-372-8019 Direct Line
Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website
Buyers and Sellers wanted. Referrals Appreciated!

Selling Your Home In Todays Real Estate Market.

Even though the real estate market has slowed down in recent years, there are still homebuyers eager to make a purchase. Knowing how to prepare your home for sale, when to allow access for showings, and how you can offer buyer incentives will help you find the right buyer, even in a declining market.


Before you put your home on the market, make sure that all basic repairs are completed. Nothing can turn off a prospective buyer quicker than loose railings, torn screens or missing hardware on cupboard doors. These easy repairs do not cost a lot of money. If a homebuyer sees that the little things are not attended to, they are likely to believe that the larger things are neglected too. Let buyers know that you have pride in your home by making sure that all of the small repairs are taken care of.

Keep your home clean throughout the time it is on the market. In a slow real estate market, it is important to have your home available to show at a moment's notice. The more often your home is shown, the likelier it is that your home will sell. Keep your home available to your realtor and they will be able to show your home quickly to any buyer that shows interest.

Have your home staged by a professional. Home staging has become a booming business and a professional home stager will help you remove clutter and depersonalize your space. Prospective homebuyers want to picture their family in the home, not yours and a home full of personal clutter will not show off the potential of your home.

Keep pets contained during a real estate showing and make sure that your cat litter box is always clean. Pet owners tend to get used to the odors caused by litter boxes and it is important that you remember to clean it every day. Nothing will turn off a prospective home buyer like a home that smells. Many people are fearful of dogs, especially ones that they do not know. Make sure that you either take your dog with you for a showing or put them on a leash outside.

Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been if you had sold it last year and focus on what your home is worth now. In a buyer's market, buyers don't have to negotiate much. Buyers know that you want to sell your home and a home that is priced too high is likely to be looked over. Ask a fair price for your home to avoid the need for too much negotiation.

In a slow market, hiring a real estate agent is crucial to get your home sold in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience that comes fro a real estate agent who is able to take care of everything in order to sell your home.

Selling your home can be a stressful time, but you can be successful in selling your home if you remain patient, reasonable and flexible. There are buyers out there and the key is to find them and get them to fall in love with your home.

All The Best,

Herb Johnson

859-372-8019 Direct Line
Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website
Buyers and Sellers wanted. Referrals Appreciated!

Feel like you have been knocked down and having trouble getting up?

Most people would agree that professional football is a rough and even sometimes violent sport. Years ago, during a Monday-night football game between the Chicago Bears and the New York Giants, one of the announcers Frank Gifford observed that Walter Payton, the Bears' hall-of-fame running back, had accumulated over nine miles in yardage by running with the football. While that was a fact it was also true that he on average got knocked down every 4.6 yards!


To put that in perspective consider the following. In a mile there is roughly 5200 feet. Take that number 5200 and times it by 9 that equals 46,800 feet. There is roughly three feet in a yard, his average was 4 and a half yards or approximately 13 1/2 feet. 46,800 divided by 13.5 equals 3,467. During his NFL career Walter Payton was knocked down 3,467 times. He didn't fall down. He was knocked down, usually by 250 pound men. Many times there were more than one!

Walter Payton was one of the most successful running backs to ever play professional football. He knew that everyone-even the best-gets knocked down. The key to his success was getting back up and running again just as hard the next time he took the football.

We might not all be professional football players but I believe there is a significant lesson in his story. To be great at what you do, understand two things, be it your career, marriage, spirit life or even being a parent. First you are going to get knocked down at some point, the second, to be good at it you're going to have to get back up and try just as hard again.

In the race that is called life, keep your eyes on the finish line and run hard! No matter who tries to cause you to stumble or whatever circumstances knock you off balance, when you fall down along the way, get back up, dust yourself off and get back in the game! Don't become discouraged and quit! In life, being knocked down is inevitable. But, if you keep your eyes on the prize and keep running hard, you will be assured of finishing well in the end!

All The Best,

Herb Johnson

859-372-8019 Direct Line
Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website
Buyers and Sellers wanted. Referrals Appreciated!

The Connection between Real Estate and Our Economy

Most have watched the real estate market wondering what lies ahead. While no one can predict the future various government programs for delinquent and financially challenged homeowners reveals a disturbing fact. The delinquency trends for all the types of loans are up.


Aren't those just sub prime loans I hear about on the news you ask? Does it really matter if it's prime or sub prime? The national average is 13.2% for total non-current home owners. This statistic counts both delinquencies and foreclosures.

Everything that happens in real estate can happen because of other things. Just a few of the many examples are taxes, lending practices, interest rates and unemployment.

Many of us who thought that we were going to see REOs (real estate owned by lending institutions) all over the place for the last year were surprised. That hasn't happened to the extent most thought because there was an intervention by the government. But how will that intervention and the aging population impact us moving forward?

Having a Federal deficit that is trillions of dollars (still growing) with the aging of the baby boomer generation will cause big changes that effect finances and real estate. I've recently read a report that says we are going to see higher taxes too. If we're going to try to resolve our problems and pay for past mistakes using government intervention, the money has to come from somewhere doesn't it? Logically we're going to have to pay higher taxes. Yet raising taxes over time historically leads to higher unemployment. With aging consumers buying less (because savings and equity in their home are now less) this will put more of a burden on the government due to fewer tax revenues and greater government expense.

There is at least one silver cloud. The prediction is for low interest rates for the next couple of years!!

All The Best,

Herb Johnson
859-372-8019 Direct Line

Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website
Buyers and Sellers wanted. Referrals Appreciated!

In Need Of An Attitude Adjustment?

I'm sure many of you have heard the expression, attitude is everything. Attitude might not be everything but it is definitely important, especially right now. Now it is simply your attitude and mentality that will give you the edge over others who are trying to prosper in this highly volatile market. Most people are intelligent enough to know that this statement is true. Some people reading this may argue that a positive attitude doesn't always work. Maybe not always but I know one thing for sure, negative thoughts and attitudes seldom work to your advantage!


Once I was told, “An optimist is someone who tells you to cheer up when things are going his way”. If you are reading this article, times may be difficult and you want serious answers to important questions such as, how can I profit in this market? There are many answers to this question, but first I need to impart to you some relative perspective.

A History Lesson on Real Estate Cycles:

About every twelve years on average, real estate values tend to spike in most major metropolitan areas. For example, in the 1920’s, homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost 8 times over the last 80 years. That averages out to a 100% increase approximately every ten years. An interesting note to this is that about every twelve years, real estate values correct before they enter their next upward cycle.

It’s Not a Matter of If, It’s a Matter of When.

The real estate evolutionary process has been three steps forward and one step back. The last market cycle of the 1980’s was one in which real estate values doubled, followed by a correction of the early 1990’s, which equated to a 20-30% decrease over a five year period. This cycle was then followed by the post-millennium cycle boom of 100% from the last high point of the previous cycle. We are now in the naturally occurring phase of a correction in the cycle. This essential and beneficial adjustment gives the market pause to re-gather momentum and strength for the next cycle. This has occurred time and time again because the long term demand for housing is growing an exponential rate based on population growth to almost double in the United States by 2050.

Since we now know based on history that nearly all real estate prices will spike again, it’s not a matter of if, it’s a matter of when. I'm sharing these facts to help put you in the right frame of mind to buy now versus next year if you're planning on staying in the home more than five years. If you are apprehensive about it being the right time to buy, ask yourself if you would like to purchase your parents home for the price they paid for it when you were born? The answer will be obviously yes.

Maintain a Positive Attitude Assuming a Negative Result

In other words be prepared for the worst case scenario while at the same time moving forward to get the best possible result. This will take the mental pressure off and allow you to focus on getting the job done. This approach, I believe, allows you to be positive and realistic in your mental assessment.

If it Bleeds, it Leads

There’s an old expression in the media business, “If it bleeds, it leads.” The media loves to cover negative news more than positive because it sells better. When the real estate market is in turmoil the media loves to run these negative headlines to keep reminding people how bad things are. When buyers hear the bad news, it affects demand because the negative news drives fear which makes buyers worry about whether the time is right to buy a home.

Is the media simply reporting the news or does the media actually affect the news in this regard? The answer is obviously both. The media reporting negative news alone can’t shape a real estate market. However, since perception is often reality, when buyers are spooked, they may shy away from buying. This affects lenders, builders, real estate agents and other professionals who rely on the real estate business for their income. It becomes almost a self fulfilling prophecy because things get worse and the media again reminds us how bad things are.

But are things really as bad as the media reports? When you hear that foreclosures have doubled or even tripled in a particular area, this may sound catastrophic at first until you realize that the vast majority of homes (90% or more, depending on the local market) are NOT in foreclosure. Despite the doom and gloom there’s always a buyer for a well-kept home offered at the right price. In short, don’t read the paper if you want to keep a positive attitude and sell your homes fast!

Fear

Many people reading this are prone to inaction because of fear. Remember, it’s not a matter of doing it perfectly, but putting forth your best effort. As discussed earlier, a lot of effort at a “C” level beats doing less things at an “A” level. Don't let today's fear rob you of tomorrows great opportunity!

All The Best,

Herb Johnson
859-372-8019 Direct Line
Herb@HerbJohnson.com Email
http://www.herbjohnson.com/ Website

Buyers and Sellers wanted. Referrals Appreciated!