R. "Buzz" Lucas

Timing is Everything

Buzz Lucas — Thu, 10 Sep 2009 14:02:00 GMT

We've all heard the phrase, "timing is everyting" and I was struck this morning with how absolutely true it is in today's Real Estate market. Everybody wants to buy at the bottom of the market changes and sell at the top, just like the stock market. This is a lot easier to do in theory than in practice. Why is that you say? Well, even though we have the Fed telling us that we are now on the way up from the Recession, we need to keep some factors in mind:

All Real Estate is very Local. One area may be bottomed out and on the way back to recovery when another area, or market segment, is still in decline. I submit that the moderate homes, below $300K, are moving now but the listings above that number are still somewhat stagnant. I do believe that the Beaufort market overall is past the decline state and on it's way to recovery but due to the "locality rule," a knowledge of the local market is necessary to optimize a purchase.

The other factor that I see coming forth is that the Sellers are in many cases unable or unwilling to accept the curent market value of the property. Lots of owners are locked into mortgages that are "upside down" and simply can't meet the Buyer's bidded price. That means that unless there is some form of distress on the Seller's part, the Seller will most likely be staying in the home until the market returns to a level that will meet the needed sale value.

Another area of influence on the sale of property is the new rules in the area of finance. Currently, most lenders require a 20% downpayment and credit scores in the middle 600's just to qualify for a mortgage. Assuming that those requirements are met, the new changes in the rules for Appraisers have caused many deals to have to be renegotiated or even lost. One would think that the "current market value" would be defined as "what someone will give you for it" but this is sometimes not the case. If an appraiser uses foreclosed properties as "comps," the value of the subject property is diminished substantially which means that the amount the lender is willing to loan is decreased. Sometimes it works out, sometimes not. Another reason to have local knowledge available.

I could go on for a long time on the subject of the dynamics of the current Real Estate market but I'm afraid that it might begin to be boring. If you want me to revisit this subject please leave a comment, pro or con, and I'll see what I can come up with.

Remember that we were in a recession for at least 6 months before the Fed even realized, or acknowledged, the fact. So, Timing IS Everything and local info is invaluable!

Are Mortgage Failures Creating an Opportunity?

Buzz Lucas — Sat, 11 Aug 2007 19:03:00 GMT

It's hard to believe that June and July are gone already, but that's what happens when you're busy. Having left the Louisville, Kentucky real estate market in late June and then entering the Beaufort, South Carolina real estate market in early July, I have been able to have a unique view of what the "real" activity of the housing industry is. So, here is my opinion;

First, the media is really having a field day with the mortgage industry. I have long thought that when you want to sell news and there isn't anything new happening, the editors and producers send the "reporters" out to re-hash some old news and then put it out as "breaking" news. All of this is sensationalism and causes the Sellers to stay on the sidelines and the Buyers to stay in their apartments and homes because they are afraid of "losing big" in real estate.

Secondly, we are getting into an election campaign which means that you can't believe anything that is being said until January 20, 2009 at the earliest.

So what are we to do? Hide until the new administration comes in?

I don't think so and to prove it, I am still buying and selling real estate. Why? Because real estate is one of the very few things that can be invested in that is very difficult for an "outside force" to manipulate. (An example of market manipulation is the retail gasoline industry, which is acting like a monopoly.) Real estate is difficult to fix prices in because it can't be "produced" only improved, and it is very local in price structure. The really good thing is that if you look at the long term, it always appreciates! It might take 5 to 10 years, but there are few, if any, places that regress. The key is to know what you can afford and stay BELOW that number. That's what the banks used to do until they decided to take on more risk and loan 100% or more on property. People bought homes that were above their "affordable" number, (generally a fixed payment not more than 32% of income less debt payments,) and now they can't make the payments. This is an opportunity to purchase at below market levels, but do not forget that you too have an "affordable" ceiling or you could wind up on the other side of the fence.

So, to use the stock market jargon, buy low and sell high! Be prudent and you can capitalize upon an opportunity. Remember that this process may take past 2010, so plan accordingly. A piece of real estate is only worth what someone will give you for it. Always has been true and I don't see it changing anytime within our present economic system.

A New Addition to the Oceanfront Homes Page

Buzz Lucas — Mon, 19 Mar 2007 22:37:00 GMT

Well, I'm still getting my feet wet with this blog thing, but I did want to let everyone know that I have received permission to show some Beaufort, SC listings on my website. They are now available on the Oceanfront page and clicking on the link will take you directly to the listings. Feel free to take a look and if you want to know about any of them just drop me a line at Buzz@BeaufortBuzz.com and tell me what you want to know. (Comments on the site are also appreciated.)

Has the Real Estate Market Bottomed Out?

Buzz Lucas — Mon, 29 Jan 2007 21:02:00 GMT

Wow, have I been busy for the last few days. It really surprises me when I read about the "collapse" of the housing market because '07 looks as good as '06 so far. I'm sure that one of the big factors in this is that the Louisville, Kentucky homes market has not experienced the wild swings that places like Naples, Florida or Boston have been through. Our market here has been very steady for the past decade or so, which makes this a very good time to buy a new home. Mortgage rates are still quite low and it is definitely a Buyer's market for the time being. South Carolina has experienced more of a swing with a "flat" period during the last quarter, but is now gathering steam quickly. Thinking about that second home? Now's a good time to do it!

Developments on the Ocean Front

Buzz Lucas — Sat, 30 Dec 2006 20:55:00 GMT

Well, some big changes are on the way for 2007. The Beaufort, South Carolina home market is going to become a reality. The SC real estate license is already in the works now and I hope to be able to show some of this beautiful country to my clients. I'm going to try to post a few pictures to give the feel of what the "Low Country" is like. I found it to suit me quite well. The living pace is slow and the scenery is breathtaking, but you also have the 4 seasonal changes. Take a look at the photo gallery.

Opening Day

Buzz Lucas — Fri, 08 Dec 2006 15:08:00 GMT

This is the first of what I hope to be many interesting entries and comments.

Here we are in the throes of Winter trying to keep from freezing...BUT....mortgage rates have just hit a 14 month LOW....oh joy, we can still get a good deal on a house!

Since this is near the end of '06, I would also like to thank all of my wonderful clients for letting me particiate in their lives. I think that everyone was happy with the results and new friends have been made.

Merry Christmas and a sincere wish for a Happy and Propserous 2007 !!

166 Hidden Valley Rd in Irvington is Sold!

Buzz Lucas — Fri, 08 Dec 2006 06:00:00 GMT

Irvington, Breckinridge County - The manufactured home at 166 Hidden Valley Rd has been sold.

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Ranch For Sale in Kenwood

Buzz Lucas — Tue, 31 Oct 2006 06:00:00 GMT

Nicely Kept Home in Park Like Setting

• 1 bath, 3 bdrm ranch - MLS® $114,900 - Great $/square foot

Kenwood, Louisville - Very nicely kept Home with two porches to allow you to enjoy the park like setting just a block from the park itself. Just a walk across the street to the outdoor theater, walking trails, frisbie golf and a short jog to the real golf course. This Ranch home has a large living room with beautiful wood trim, fireplace, and built-ins. The kitchen is spacious with plenty of room for large eating area and still room for the chef to work. The unfinished basement has loads of possibilities and already has a brick fireplace. Also note that there are both a garage and a carport in addition to the large driveway. Come see what it's like to live in a park! Call today!

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4030 Poplar Level Rd # 3 in Buechel is Sold!

Buzz Lucas — Tue, 19 Sep 2006 06:00:00 GMT

Buechel, Jefferson County - The multiplex at 4030 Poplar Level Rd # 3 has been sold.

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7211 Wood Rock in Fern Creek is Sold!

Buzz Lucas — Tue, 19 Sep 2006 06:00:00 GMT

Fern Creek, Jefferson County - The ranch at 7211 Wood Rock has been sold.

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1 1/2 Story For Sale in Saint Matthews

Buzz Lucas — Mon, 11 Sep 2006 06:00:00 GMT

• 1,571 sq. ft., 2 bath, 4 bdrm 1 1/2 story "Feels like a 2 story" - MLS® #1148770 $214,500 - Great Price in St Matthew

Saint Matthews, Louisville - A very well kept Cape Cod that has the feeling of a Colonial floorplan. Front porch enters into the living room with fireplace and built in bookcases, then flows to the formal dining room. The kitchen is very large for a home of this era and has a complete wall of cabinetry, room for a 60 inch range, and a four set table! The hall connects the two first floor bedrooms and the full bath, all with unique features. The full basement is divided into the unfinished laundry & utility area with plenty of storage, and the finished bar and family room all done in knotty pine. The second floor has a center hallway with a large cedar closet, a full bath with walk in shower, and 2 large bedrooms. All this and only 3 blocks from Seneca Park!

Property information