REAL ESTATE

Wakefield Reutlinger Realtors, a Berkshire Hathaway Affiliate

ALL THE WAY HOME...425-0225
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UPDATE
Louisville
2nd Quarter 2014
Wakefield Reutlinger Realtors
YTD Sales by
Price Range
1/1-3/31
2013
1/1-3/31
2014
% Change
Up to $150,000 1,569 1,522 -3.0%
$150,000-$299,999 883 829 -6.1%
$300,000-$499,999 239 208 -13.0
$500,000-$999,999 58 62 +6.9%
$1,000,000 + 5 4 -20.0%
Total 2,754 2,625 -4.7%
Month at a Glance Month at a Glance Month at a Glance Month at a Glance March 2012 March 2012 March 2012 March 2012 March 2013 March 2013 March 2013 March 2013 March 2014 March 2014 March 2014 March 2014
Houses Sold 981 1071 1002
Avg. Selling Price $168,930 $169,843 $168,761
The housing market in Louisville, like most of the rest
of the country, suffered due to the severe winter
weather. First quarter sales of existing homes for the
Greater Louisville Area were down 5% from a year
ago, but ongoing inventory shortages kept prices
level in most areas. Sales for the month of March
were down 6.4% versus the same month a year ago.
Prices in Jefferson County were up about 1.5% from
a year ago. Tight inventory was reported in most areas,
with 20% fewer homes for sale in March compared to
the same month one year ago. In fact, some sellers in
the Highlands, St. Matthews and Crescent Hill are
experiencing bidding contests. Buyers are competing
for scarce homes because many potential sellers
have decided to stay put instead of moving up or out
after the recent housing crisis. Another factor adding
to the lack of inventory is that one in six Louisville
metropolitan area homeowners, or 16.6%, still owe
more than their house is worth. However, the Spring
market is looking up with interest rates still at histori-
cally low levels and an almost 10% increase in pend-
ing sales in March versus a year ago.
Nationally, following three consecutive monthly
declines, existing home sales fell another .2% in
After Slow Start, Home Sales Looking Up
March, dropping to the lowest level since July of 2012.
Lawrence Yun, NAR Chief Economist, said that current
sales activity is underperforming by historical standards.
There really should be stronger levels of home sales
given our population growth, he said. In contrast,
price growth is rising faster than historical norms
because of inventory shortages.
Yun expects some improvement in the months ahead.
With ongoing job creation and some weather delayed
shopping activity, home sales should pick up, especially
if inventory continues to improve and mortgage interest
rates rise only modestly.
Another positive, Steve Brown, NAR President, believes
There are indications that the stringent mortgage
underwriting standards are beginning to ease a bit,
particularly regarding credit score requirement. In
addition, Federal Reserve Chairwoman Janet Yellen
said recently that interest rates would stay low for
some time and then rise only gradually. Her
comments included remarks that the gap between
the 6.7% unemployment rate and the Feds 5.2% to
5.6% estimate of the normal rate remains significant,
and in our baseline outlook, it will take more than
two years to close.
Units Sold January 1-March 31
March Unit Sales of Single Family Residential and Condo
21c Hotel is Gold 21c Hotel is Gold 21c Hotel is Gold 21c Hotel is Gold
Louisville's 21c Museum
Hotel has been named to
Conde Nast Traveler's
"Gold List" for 2014.
The list, which was
published in the January
issue, includes the property
among the world's top
hotels in the Platinum Circle
category for the second year
in a row. The Platinum Circle
features properties that
have made the Gold List for
five years or longer. 21c
Louisville has been named
to the Gold List since its
opening in 2006.
TESTIMONIAL
"Ellen, I am so delighted
and appreciative of all that
you have done to make a
difficult journey easier. I
respect your honesty and
your professionalism and
am delighted with our new
home."
Page 2
Why Education Will Keep Housing Crisis at Bay
Why did the financial crisis happen in the
first place? More importantly, can we learn
enough from history to stop it repeating?
Anyone with a heartbeat could get a mortgage,
and lending standards remained non-existent.
Boom, then bust. And America is still clawing
itself out of the leftover damage.
Doug Duncan, chief economist for Fannie
Mae, previously said, It took 10 years to get
to the housing bust, so it will take 10 years to
get back.
But for now, the Consumer Financial Protection
Bureau is doing what it can to ensure that the
same situation never happens again.
We have an opportunity to see that America
does better by its children. Now more than
ever, as we emerge from the deepest financial
and economic crisis of our lifetimes, people
need the know-how to manage the ways and
means of their lives, Richard Cordray, director
of the CFPB, said at the Presidents Advisory
Council for Financial Capability for Young
Americans meeting.
The choices they face in the financial market-
place with instruments like mortgages,
credit cards, auto loans, student loans, credit
reporting, and more are increasingly
complex, he continued.
Cordray outlined five ways young child-
hood education is the key to helping
shape housings future.
1. Financial education should begin at a
young age. Education needs to be a
priority as students approach graduation
from high school and should continue to
evolve into adulthood. Cordray explained that
this can be attained through integrated curric-
ula in our schools, so the benefits of com-
pound interest are understood in math
class, economic costs and risks are taught
in social studies class, and essay topics in Eng-
lish class may cover how we use money,
how we protect our money, or how we can
take control of our financial lives to achieve
our goals.
2. Students should practice financial management
through experimental learning. Whether it is
through simulating a banking experience or
playing a computer game that hones
financial skills, it will help students learn
more effectively.
3. Teachers who are interested in teaching personal
financial management need to be supported
and engaged. Teachers need access to training
and incentives to take part, such as continuing
education credits or need-based travel stipends.
4. Financial education concepts need to be
integrated into standardized tests. In doing so,
it would increase the incentive for educators to
teach these topics.
5. Parents need to get involved. Parents help
set expectations, and research has shown that
if parents engage their children by establishing
a savings account for them, these children are
seven times more likely to attend college
than those without a savings account,
Cordray explained.
Arming todays youth with greater financial
knowledge is the key to making sure there is
no repeat of the housing and economic crisis.
The Value of a Home Inspection
Home inspections have proven to be a positive
and educational experience for prospective
home buyers. An impartial inspection by a
professional National Home Inspector (NHI)
or Registered Home Inspector (RHI) will
provide a large measure of protection from
unpleasant surprises and allow you to make
an informed decision about your purchase.
The inspection also affords you the opportunity
to learn the ins and outs of how your new
home is built and how the varied systems
operate.
The purpose of an inspection is to determine
the condition of a property at the time of
purchase, or afterwards in cases involving
litigation, in order to disclose the following:
Serious deficiencies
Replacement and repair requirements
Age and life expectancy of major components
Positive aspects of the home maintenance
and safety information
The following is part of a standard home
inspection:
Exterior:
Slope, grading and drainage of the property
Foundation and exterior walls
Porches and decks
Windows, doors, headers and sills
Fascia, soffits and eaves
Roof, flashings, vents, chimneys, garage, carport
Interior:
Foundation walls, basement floor, posts
and beams
Waterproofing, moisture penetration, wood
rot, etc.
Electrical service and wiring
Plumbing supply, waste drainage and fixtures
Heating, air conditioning and ventilation
Floors, walls, ceilings, doors and windows,
attic insulation and ventilation
Typically an inspection takes between 2 and
3 hours, occasionally longer. It can cost $300
and up depending on the size and scope of
the property.
It does not include appraisals, exact quotations
for repairs, noncompliance with building code
requirements, and is not intended to provide
guarantees or warranties. Septic inspections
are not part of a standard home inspection
but very important.
New home construction is not without its
problems. While most homeowners can identify
cosmetic issues with their new home, often
their untrained eye can overlook serious
construction deficiencies. This is a job best
left to a trained professional.
Air Conditioners can not be inspected except
during summer months (typically May to
September). Pools and spas are not included
as inspection items. Wood burning fireplaces
could require a separate inspection.
Knowing what to expect will help you make
an informed decision about the value of your
home as well as the costs of future upkeep.
You are generally granted a limited time
frame to arrange and have your inspection
completed. The actual home inspection takes
place after all price negotiations have been
finalized and the sellers have accepted your
offer. At this point in time, it is evident that
you intend to purchase the property. Now is
your opportunity to determine the finer details
about what you are buying by engaging the
services of a licensed Home Inspector.
Source: 5 Ways Children Hold the Key to Housings Future, HousingWire
Real Est at e Insi der
Page 3
Although kitchens and bathrooms always steal the
spotlight in a home remodel, they arent necessarily
the ones that have the highest return on investment
when you sell your home.
Since 2002, a trade magazine for contractors and
builders called Remodeling has been tracking
how much it costs to do common home improvement
projects and then calculating how much of that
cost is recovered when the home sells.
Each year, we highlight the projects with the highest
return on investment (ROI)from the magazines Cost
vs Value Report.
The 5 Best Time-Tested
Remodeling Projects and
the Worst
Project
Long
Term ROI
Entry door replacement (steel) 97.2%
Siding replacement (ber-cement) 83.8%
Minor kitchen remodel 82.3%
Siding replacement (vinyl - mid-range) 81.6%
Deck addition (wood) 80.6%
Siding replacement (foam-backed vinyl) 79.7%
Attic bedroom remodel 79.4%
Window replacement (vinyl - upscale) 79.4%
Window replacement (wood - mid-range) 76.8%
Window replacement (vinyl - mid-range) 75.9%
B, G E D T
B S S
The spring and summer months are
traditionally the busiest times of year for
the residential real estate market. Weath-
er is more cooperative and many families
like to move while the kids are on their
summer break.
But in recent years, spring for many regions,
has meant more homes on the market,
but also more buyers, erce competition
and an increase in prices.
If youre in the market for a house this
spring, there are a number of steps you
can take to try to give you the advantage
over other homebuyers, including:
Get your loan pre-approved. This will give
an advantage on several fronts. First, it will
be done and out of the way. Second, youll
know how much the bank is willing to loan
you so you know in which price range to
look. And third, it shows sellers that youre
serious and ready to buy when you make
an oer.
Figure out how much you have for a down
payment. NAR says rst-time buyers typi-
cally make a down payment of 6 percent
on a home purchase, and 24 percent of
down payment funds were gifts from
relatives or friends. If thats not an option,
there are many loan programs that accept
down payments of ve or three percent.
And dont forget closing costs, which will
often run two to seven percent of the
propertys purchase price.
The River Bluff
Occupying a setting overlooking the Ohio River in Indian Hills, this large "Cottage" style
home with Tudor inluences was designed by E. T. Hutchings. Built in 1923 for Pauline and
Robert Burgess on a site of 14 acres, Mrs. Burgess was the granddaughter of Theodore Ahrens,
the President of American Standard.
The home is entered through a heavy wood door to the entrance hall facing the Formal Dining
Room. To the left through a small Den is the large updated Kitchen with windows in
all directions taking advantage of the views. To the right of the entrance is a large story
and a half Great Room spanning the house from front to back. In front, looking South, are
large windows and to the rear are French doors leading to the Terrace overlooking the River.
At the front of the Great Room is a Hall leading to the 2 story bedroom wing with Master
Bedrooms on both
loors. Many rooms
have large windows and
balconies with views of
the River and the wood-
ed property. The front
bedroom wing was add-
ed by Architect Hutch-
ings in 1937. The estate
was subdivided in 1967
and the original home
has 6 acres which pro-
vides delightful privacy.
By Dave Arnett
But this year, we decided to focus not
just on the new data, but how projects have
performed since 2002.
So, whatd we ind?
Well, you may want to reconsider turning
that spare room into a full-ledged ofice.
A home ofice remodel had the worst
overall ROI of 53%; the projects been
declining since it was added to the study
in 2005 with an ROI of 72.8%.
The biggest jump weve seen? Backup
generators, which had some of the lowest
ROI rates over the years as low as 47.5%
in 2011 leapt to 52.7% in 2012 and
then took an almost 15 point jump to 67.5%
in 2013! We can be pretty sure Hurricane
Sandy and extreme weather in recent
years are a big part of the reason.
But the real gems are those projects that
dont have such highs and lows the
ones with consistent ROI.
Were not saying these steady and reliable
projects are the right ones for you. If a
home ofice will improve your quality of
life and help you enjoy your home more,
then it makes sense. We just think knowing
whats going to happen with your remodeling
dollars makes sense, too.
So, which ones are the long-term winners?
The projects that share these 4 characteristics:
Low-maintenance
Good -not necessarily the highest quality
Energy-eficient
Not too costly
Myths and Facts about Appraisals By Marcie Geffner
This is not intended to solicit a currently listed property.
Information is deemed reliable, but not guaranteed.
Interest Rates
Fixed 30 Year 4.250 %
Fixed 15 Year 3.375 %
Fixed FHA 30 Year 3.750 %
Fixed 30 Year Jumbo 4.375 %
*as of May 6, 2014- restrictions apply.
If you've ever watched "Antiques Roadshow",
you're already familiar with the concept of an
appraisal. The idea is similar in the realm of
real estate valuations. Each property is unique,
and the appraiser relies on his or her general
expertise and specific research to arrive at an
opinion of value.
Here are some myths and facts:
Myth: The primary purpose of an appraisal is
to make sure the buyer doesn't pay too much for
the house.
Fact: An appraisal provides valuable information
for the buyer and the seller, but the appraiser's
primary mission is to protect the lender. That's
why the appraisal takes place before the lender
grants final approval of the buyer's loan.
Myth: Appraisers use a specific formula, such
as one using the price per square foot, to figure
out exactly how much each home is worth.
Fact: Appraisers weigh the location of the home,
its proximity to desirable schools and other public
facilities, the size of the lot, the size and condition
of the home itself and recent sales prices of
comparable properties, among other factors.
Myth: Good housekeeping can improve a
home's valuation.
Fact: Appraisers aren't interested in dirty dishes
or dusty dressers, but they do notice such signs
of neglect as cracked walls, chipped paint, broken
windows, torn carpets, damaging flooring and
inoperable appliances.
Myth: Anyone who has a clipboard and business
cards can be an appraiser.
Fact: Federal law requires states to establish
minimum standards and licensing practices for
real estate appraisers.
Myth: Appraisers have no obligation to reveal
home defects to buyers.
Fact: If the buyer is applying for a mortgage
that will be insured by the Federal Housing Admin-
istration (FHA), the appraiser must survey the
physical condition of the home and disclose
potential problems to the buyer. No such obligation
exists for non-FHA mortgages.
Myth: An appraisal is identical to a home inspection.
Fact: The FHA disclosure requirement notwith-
standing, an appraisal isn't a substitute for a
professional home inspection. The appraiser
formulates an opinion of the property's value for
the lender, while the inspector educates the buyer
about the condition of the home and its major
components.
Myth: If the appraiser's opinion of value is lower
than the purchase price, the buyer won't be able to
purchase the home.
Fact: A transaction can sometimes survive a
"low" appraisal if the seller reduces the purchase
price, the buyer makes a hefty downpayment or a
separate escrow account is set up to fund repairs
that will increase the value of the home. On rare
occasions, an appraiser will reconsider his or her
opinion if new evidence supports a higher val-
uation.
Carol Armstrong Carol Armstrong Carol Armstrong Carol Armstrong, REALTOR REALTOR REALTOR REALTOR

Carol was born and raised in Springfield, KY, attended University of Indiana, and worked as a surgical
and psychiatric nurse until she became a Realtor in 1978.
She has been involved in so many worthwhile organizations over the years, raising monies for cancer
and art programs for disadvantaged children. She has served on the boards of EMS, Multiple
Sclerosis, and the Norton Psychiatric Council as well as involved with the Younger Womans Club and
the Womans Club of Louisville.
My interests, other than my two adorable granddaughters and family, are competitive bridge, golf,
needlepoint, and being with friends... and of course, I love my work....finding the perfect home for
clients.
David Alkire David Alkire David Alkire David Alkire, , , , REALTOR REALTOR REALTOR REALTOR

David comes to us with a long background of sales experience. After attending Michigan State
University, David plunged into the auto industry and after 6 months knew he wanted a career
in sales.

Learning how to cope with the "hard to sell" made me more determined. Used cars became my
favorite, because no two used cars are identical....just like homes.

David was the General Manager for Volvo of Louisville from March 2004 until May 2013.

I Love to work. I look forward to assisting my clients in making informed decisions about
real estate.