Louisville, KY Real Estate Podcast with JP Pirtle

I hope you’ve all had a wonderful start to the new year! Today we’ll be comparing the final numbers of 2018’s real estate market with those from 2017. 

Overall, 2018 was down a little bit from the year prior. There were about 18,000 homes sold in 2018; in 2017, there were about 18,300.

2018’s average sale price was at $218,000, up from 2017’s average price of $208,000.

Our absorption rate, or the amount of time it would take to sell all homes currently on the market, was at 2.61 months in 2018. In 2017, it was at 2.78 months. 

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Overall, 2018 was down a little bit from the year prior.

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Mortgage rates are currently sitting at around 4.5%, and we’d be more than happy to set you up with a lender who can help you find a great rate.

If you have any questions or need more information, feel free to reach out to us. We look forward to hearing from you soon.

Real estate can be an amazing career for the right person. That said, we’ve got some great news: Our team is hiring.

Whether you’ve got your license and have experience under your belt already or you’re just now thinking of entering the industry, we’d love to connect with you to discuss your future.

Our team spends about $300,000 on advertising each year, and this creates a lot of leads. That’s exactly why we’re looking for hardworking, career-oriented people right now. We need agents to work the surplus of leads we have.

Our commission program, team commission splits, and independent commission splits are as good as it gets. Better yet, there are no fees for our agents. We offer signage, technology, and other resources you need to do the best job for our clients. This helps to put more money in your pocket.

In addition, agents on our team can draw upon the support of our full-time administrative staff and various managers—all of whom are there to help lift you up to your full potential.

Not everyone feels certain that a real estate career is right for them, though. Many worry that they’ll spend a lot of time spinning their wheels, trying to get that first deal under their belt. When you join us, you can let go of those fears. Our 12-week guaranteed income program will make sure that you hit the ground running and start earning right away.

So if you or anyone you know are looking to get into real estate, please give us a call or send us an email. We look forward to hearing from you soon.

Thanks to your referrals and your business, we are growing tremendously. As a result, we are hiring new agents! 

Whether you are currently an independent agent or looking to change teams, there are a few unique opportunities available on our team. 

First of all, there’s the money. We can beat any legitimate competitor’s commissions. We can beat anyone’s commission splits and we have very low caps, which means that once we make a certain amount on your transactions, you will get 100% commissions. That is negotiable. We are not a large franchise but we can do deals that make sense so that we can beat anybody when it comes to money. 

There are no royalty fees, monthly fees, desk fees, or technology fees when you work with us. We don’t charge our agents for signs, either. If you are going to market our company, those are free for you guys. 

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We can beat any legitimate competitor’s commissions.

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As far as income, we know how hard it is to get started in this business. Sometimes, there is a gap of a couple months where you really have to make money and people just go out of business. We have guaranteed income for the first few months so that you don’t just fall flat on your face. We realize that if you want to make a career change, you want to make some money.  

Our agents also benefit from the name recognition that comes with being part of Dream J.P. Pirtle Realtors. We spend almost $30,000 a month on marketing. We buy and sell 500 homes each year. We do a lot of business, which creates a lot of name recognition and a lot of leads for people to create business. 

Speaking of leads, we generate 800 to 1,000 leads every month. I need good people who are not afraid to work these leads. We also offer a free lead management system that is probably the best one in the business. You get your own website but your lead management platform is free. 

We also have a full-time admin staff ready to help you. We have a team leader, a lead manager, a listing manager who puts your listings on the MLS for you, and a closing manager who helps you get from contract to close.

We offer investment training. We buy or sell 50 to 70 investment properties a year. For a lot of people, real estate is a great way to produce retirement income. I’ve been doing that for 20 years, and when you join my company, anything that I know is for you to know. I will be an open book for you. I can help you buy flips, rentals, or anything else you’re interested in. 

So, what are we looking for in a candidate? 

We are looking for ambitious, honest, hardworking people who believe in treating other people the way they want to be treated. That’s how we like to do business. We have almost 60 agents but our team has a small, family atmosphere. 

We are looking for agents who want to grow with us, have fun, have a great life, and treat others the way they want to be treated. 

If you or anyone you know is interested in working with us, contact me or John Holtzinger at (502) 458-2722 or [email protected]. We look forward to hearing from you!

Before we begin today's topic, I have an important message for anyone considering selling their home.

Inventory in the Louisville area is lower than I have seen in over a decade. If you are considering putting your home on the market this summer, don’t delay. Now is an absolutely great time to put your house on the market. A lot of people say they are waiting for summer, but if I were you, I would highly recommend getting your market analysis and putting your house on the market ASAP.

Don’t hesitate. Get your home on the market as soon as you can.

Now, let’s get back to the numbers.

It’s definitely a seller’s market. In March of 2018, there were about 1,389 home sales compared to over 1,600 homes in March of 2017. A lot of that has to do with inventory.

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This is the lowest level of housing inventory that I have seen in over a decade.

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This year, the average sales price was $210,000 compared to $194,000, so prices are up. The average days on market is 68, which dropped slightly from 72 days in March of 2017.

The absorption rate in March of 2018 was 2.26 months opposed to 2.61 last year. Active listings decreased from nearly 4,000 last year to 3,473 in 2018. Last year was still low.

Interest rates are going up. Last year they were around 4%, and this year, they are around 4.5%. That’s thanks to Keith Swisher and his team at Statewide Mortgage. They offer great terms, great rates, and are great people to work with when looking for your new home. A 4.5% rate is still pretty low.

The quote of the month is from Pablo Picasso: “Action is the foundational key to all success.” Implement action and you will see results.

If you have any questions, need a free market analysis, or just want to say hello, give me a call or send me an email. I would be happy to help you!

The first month of 2018 is already behind us, so today I will be going over a market recap for what we saw this January. I would also like to take a look back at our January 2017 market.

Thanks to all of you, 2017 was my company’s greatest year. I want to express from the bottom of my heart how much I truly appreciate all of your support, referrals, and business.

This year is already off to a great start. Inventory is still really low, with under 3,000 homes on the market as we speak. The average number homes on the market for this January was 3,472. In January of 2017, the average number of homes on the market was close to 4,000

As for absorption rate, we saw 2.28 months this January compared to 2.66 months in 2017.

The average sales price for January 2018 was $217,000, up from last year’s $195,000. This shortage of inventory is really causing prices to rise, which means it’s a great time to put your home on the market.

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Thanks to all of you, 2017 was my company’s greatest year.

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Homes this January spent an average of 64 days on the market, which is 10 days fewer than the average days on market last January.

The number of homes sold in January is relatively similar between 2017 and 2018, with 983 homes sold this year and 986 sold in 2017.

Also, interest rates are finally beginning to rise. They currently are sitting at about 4.115% with an APR of about 4.2%. The statistics for our rates have been provided by Statewide Mortgage, who I highly recommend for any of your real estate needs.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Recently, sale and closing contingencies are becoming very popular again. A lot of people are afraid to buy before they sell, or vice versa. 

Unfortunately, some people may not alert you to a contingency within a contract. Whether you’re a buyer or a seller, be sure to read things over carefully and make sure there’s nothing hidden in the fine print that you weren’t told about. 

One red flag to look out for is an offer with far-off closing dates. People who give themselves a long time to close sometimes do so because they’re hoping they can sell their home during this time, before they buy yours. If they don’t, they can wiggle out of the contract and get their deposit back by having their lender verify that their financing fell through. 

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Read things over carefully and make sure there’s nothing hidden in the fine print.

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Personally, I don’t think this is exactly ethical. I think contingencies should be revealed up front. Since this isn’t always the case, though, be sure to have your agent check over your contract for contingencies. Contingencies absolutely must be in writing. 

The first writer refusal time frame is also important. If you, as a seller, get another offer within this time frame, the first buyer needs to make a decision about whether to put their offer in writing or not. I personally think 24 hours is plenty of time for this. 

Lastly, be aware of when inspections start on a contingency offer. My preference is to have inspections completed right away after acceptance, so that the deal can be solidified sooner rather than later.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

I need your help. 

We need a really great maintenance professional, that specializes in plumbing, who can do everything that a licensed plumber could do, including fixing leaks, snaking the inside and outside of drains, and installing faucets, sinks, and tubs. 

HVAC experience would be a plus but is not required. 

We are really growing and buying a lot of properties, so we need a great plumber on our team. 

The maintenance professional will do some handyman work but the main focus will be on plumbing with some light HVAC work. We are looking for someone who is a hard, loyal worker. 

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I need your help finding a great plumber.

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They will need their own truck and tools. We will offer an absolute minimum of $20/hour, and we are not afraid to pay more if the right person comes along. 

This is truly a full-time job with a minimum of 40 hours a week. You will get paid holidays, vacation days, and sick days. 

We are offering a lifetime career here. We are looking for someone to retire with us. 

If you are interested or know anyone who might be, give us a call at 502-458-2722 or email me at [email protected]. I look forward to hearing from you!

How did our market do last August compared to August 2016?

I know I sound like a broken record, but our market keeps going strong and everything looks great—including interest rates. Let’s take a look at how the numbers stack up between then and now:

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Our market keeps going strong and everything looks great—including interest rates.

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Finally, according to Statewide mortgage, interest rates are hovering slightly below 4%, with an APR of about 4.058%. 

Now, for my quote of the day:

“Always travel the extra mile. It’s never crowded.” —Dr. Wayne W. Dyer

If you have any questions or are thinking of buying or selling a home in our Louisville market, don’t hesitate to reach out to me. I’d be happy to help you.

Recently, we’ve been seeing a lot of escalation clauses in our market. But, what is in an escalation clause?

An escalation clause is a buyer’s best and final offer. People have been making these kinds of offers for years, but recently they have become a lot more important. This is largely thanks to our being in seller’s market where competition is hot. 

Buyers right now don’t want to lose out on the right home, but they also don’t want to have to make excessively high offers. 

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Setting a limit will help ensure that a buyer doesn’t pay a ridiculous amount.

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An escalation clause allows buyers to stipulate that they will pay up to a certain amount limit in order to beat out other offers. As an example, an escalation clause might state that a buyer will pay up to $1,000 over any other offer that is made. 

This cap means that buyers don’t need to be as worried about overpaying. Setting a limit will help ensure that a buyer doesn’t pay a ridiculous amount. 

Buyers must also be careful, though, to compare offers by the net sale price. In your escalation clause, ask to see the best and highest offer. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Right now, our market is as hot as the weather. It continues to amaze me, and I don’t think I’ve ever seen it quite like this. How has the market changed since last July? Let’s go over a few statistics.

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Our market is as hot as the weather.

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If you have any questions about these latest numbers, the current state of our Louisville market, or any other real estate topic, don’t hesitate to give us a call. We’d be happy to help you. 

Quote of the month: “If you’re not shorthanded, you’re overstaffed.” - Sam Walton