What Goes Into Closing Costs?

Prior to the closing date, you (as either a buyer or a seller) will receive a closing statement that will lay out the line item details of the real estate transaction.  The items are set up as debits and credits, with the seller's on one side and the buyer's on the other.  The totals, showing what a buyer or seller needs to either bring or receive from closing, are listed at the very bottom of the last page.

Some of the detailed line items include (but not limited to) the sale price of the property, any credits (e.g. if a seller is paying toward closing costs), taxes, loan and processing fees, interest, the appraisal, certifications, homeowner's insurance, title fees, commissions, recording fees, loan payoffs, and home warranty (if applicable).

There can be variations in the line items.  For example, tax amounts can vary in different counties, there can be additional taxes for a particular city/neighborhood, commission is affected by the sales price, and the loan amount can affect the pro-rated daily interest rate that is paid.

There are attorney's fees for both the buyer and the seller.  The buyer has more closing costs with a loan; however, it is important to note that the seller has to pay a closing fee and a fee for deed preparation work.  This is for the attorney's work to essentially get the title transferred.  So, it is important to keep in mind, as a seller, that, even if you are paying toward the buyer's closing costs, you will still have title fees to pay at closing.

Give me a call with any real estate questions or needs.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

How Accurate Are Trulia, Realtor.com, and Zillow?

There are many great real estate search tools available on the Internet now.  A question of their accuracy comes into play when buyers are looking for properties.

There are two primary parts to the question I'm asking in how accurate are the on-line search tools.  One is how accurate is the data about the listings (status, price, etc.).  The second part is how much trust can be put into the estimated value of a property that some sites try to predict.

In regard to the first part, the websites are pulling data from another primary source, like the Multiple Listing Service (MLS) that Realtors use to list property.  The MLS has a local governing body to monitor accuracy, as well as self-policing from other licensed agents.  Sometimes, when data is pulled from the MLS to another site, issues occur (I've seen examples like contact information or the last sold date being inaccurate).  That doesn't mean that the sites are bad, it is just a forewarning to proceed with caution.    

In regard to the second part, there have been efforts in the past to automate what appraisers do in valuing property, but it has never come to fruition.  The simplest reason is because no two properties are ever the same (even new construction of the same style can be on a different size/type of lot).  It takes human intervention to try to assess market value of a property.

The sites have their merit and place.  However, one of the biggest reasons I tell buyers to use the MLS as the primary search tool over the other sites is timing.  I can set up a search that will notify buyers immediately when a new listing comes onto the market.  I have never seen the other sites get the information into the hands of the buyers so quickly.

If you have any real estate questions or needs, please give me a call.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Home Safety Items

It isn't something that we like to think much about, but it is important to be prepared in case of an emergency or natural disaster.
Home safety can go into a lot more detail, but here are some suggestions for safety items around the house:

• First Aid Kit--these kits can be picked up at any major retail store.  It is also a good idea to keep one in each vehicle you own.
• Flashlights (with extra batteries)--while always helpful in finding missing Hot Wheels under the couch, they are also important to have around for the obvious in a disaster.  
• 72 Hours Worth of Water--because we all need water to live.
• Emergency Phone Numbers Posted in the House--911 is the obvious, but poison control and animal control are two good ones to keep handy as well.  Oh, and the pizza delivery number.
• Fire Extinguisher--make sure that you know how to use it.
• Smoke Detectors--that work.  If you live in Jefferson County, there is a smoke detector ordinance that states you must have either hard-wired or 10-year lithium-ion smoke detectors present in your home when you sell it.  
• Carbon Monoxide Detector
• Weather Radio (with hand crank)--there are many weather radio products available that also have a regular radio and even cell phone charging ports on them.  The hand crank is so that it is its own power source.  Well, your arm becomes the power source.  
• Fireproof Safe--for important documentation like wills, life insurance information, copies of marriage certificates, etc.
• Plan of Action--in case a disaster occurs where there is no contact available (e.g. cell phone coverage is down), it is good to have a place to meet communicated ahead of time.

For any real estate questions or needs, give me a call.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Importance of a Good Loan Officer

The smoothness of a real estate transaction is very much dependent on the quality of the loan officer.
Before I started into real estate, I thought that it was simple--a buyer would go into a lending institution, and the loan officer on duty that day would take care of the process without much issue.  My assumption has [unfortunately] been proven wrong.

As a real estate agent, I manage the overall aspects of the contract-to-close period of a transaction (time from an accepted contract until closing) like a project manager would--coordinating and providing details.  That said, the one who holds the money to be lent gives the final go-ahead.  What this means is that it is important to have a loan officer who stays on top of your file, not letting anything drop along the way.  If an issue or delay of the closing date does occur, a loan officer who communicates well and works hard to get resolution is vital to help the transaction across the finish line.

Many of the loan products today are very similar.  It is important to find a product that works best for you, and a trustworthy loan officer will help guide you.

I am happy to go into any additional details regarding what I see in the loan process or answer any other real estate questions you have.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

What is the Good Faith/Escrow Check?

The good faith check is money that is put forward to show that the buyer is serious about purchasing the property.

Once a contract is accepted, the good faith money is deposited into the listing or selling broker's escrow account, depending on what is agreed upon in the contract.  There is no interest accumulated on the money.

A good faith check can be a personal check from the buyer's checking account.

It is important to keep in mind that the money is actually deposited, meaning that it will be money coming directly from the checking account.  The money will be either returned at closing or applied to the costs associated with the closing.

If the contract falls through on inspection, the buyer receives the good faith money back after the release document is signed.  However, the good faith money would be forfeited to the seller if a buyer backs out past the inspection period (there can also be other legal ramifications).

The amount can vary, typically depending on the price of the property.  Some situations (e.g. new construction) require a good faith deposit that is 1% of the purchase price.  That means that a $250,000 property would need a good faith check of $2,500.  The 1% is not a hard and fast rule, but it is important to note that a seller can counter an offer, requesting a higher good faith amount if they so choose.

If you have any other real estate questions or needs, please let me know.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Favorite BBQ Places in Louisville

Right off the bat, I'm going to put out the disclaimer that there is a lot of good BBQ in Louisville, and I know I'm missing some hot spots.  These are just some that I know and enjoy (in no particular order):


Feast BBQ
Feast is one of those places where I think, "This is what happens when kids-at-heart make a restaurant.  There are tater tots and bourbon slushies on the menu."  Check out Feast for some good eats (go for the mac 'n cheese or tots, both wins) in a hipster environment.


Hammerheads
While not a "traditional" BBQ joint, the owners know how to smoke up some good meats, whether the ribs or sandwiches.  Remember the truffle fries.  Or Grippo fries.  Or both.



Mark's Feed Store
Always a winner for me, no matter which location in town.  The pork is my favorite, but their brisket and BBQ burger are also delicious.  Don't forget some some honey wings, fried pickles, or onion straws appetizer.  In addition, they do some great catering.







Fire Fresh
Whenever I am downtown, I try to swing by Fire Fresh for lunch.  Great sauce options, good sides, and red cream soda on tap.

Momma's Mustard, Pickles and BBQ
Momma's is one of those local places that feels like it came out of nowhere--and I mean that in a good way.  Gotta try the wings--at least one, or a dozen.

Smoketown USA
Good BBQ in a cool atmosphere.  Nuff said.  Oh, make sure and talk to Eric, the owner.

If you have any real estate questions (or additional BBQ questions), please let me know.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Why Not Just Sell It Myself?

A question may arise from the listing side:  is using a real estate agent worth it?

Statistically speaking, agents get closer to asking price due to the understanding of the market and other factors.  Even though I enjoy the numbers, I don't want to overwhelm with statistics that you may or not believe.  I want to focus on the other parts of the transaction.

Here are some things that I find to be some of the biggest advantages in hiring an agent:

Agents live in the ever-changing real estate world every day.
I see what is going on with real estate trends on the national level down to the neighborhood level.  I am not looking at one transaction but see the big picture of what is going on.

Representation
The chance that someone will buy your property without an agent is extremely low.  That means that you are going to be going up against an agent that is looking out for his or hers client's best interest only.

Not dealing with the hassle of coordinating showings or the public
You would not have to be present for showings to present the property, and I can screen out random people from coming in off the street.

Safety  
I use a Supra Lockbox system, which only licensed agents can open.  The Supra box also keeps a log of who has entered the property and when.

Help with staging tips
I help talk through the best ways to set up your property for showings.

Good Photography
Good photography is good marketing.  I use high quality equipment and look for the best angles to show the property.


Before I became an agent, I thought that I would always sell my house myself.  After becoming an agent (knowing what I know/have seen now), I would not.  If you would like to know more details as to why not, give me a call.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com