Lexington KY Real Estate Blog

Saturday September 21, 2019 from 8:00 am to 2:00 p.m.- yes this coming Saturday! Mark your calendars as it is going to be a busy day! Before you hit a fall festival such as the famous Spoonbread Festival in Berea, KY, head on over to the Tuscany neighborhood in Lexington 40509. 

Tuscany, which is located right in the heart of Hamburg is located off of Sir Barton across from the horse cemetery (that is Carducci Street going into Tuscany) or located behind Lexington's Whitaker YMCA off of Sir Barton/Old Rosebud. Old Rosebud takes you right to Tuscany. There are 2 entrances off of Old Rosebud to get into Tuscany - Pascoli Place and a little further down is Villa Medici Pass that takes you right into the newest section of Tuscany. There will be residences

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The Internal Revenue Service considers four different types of real estate.  Specific types of properties have benefits based on their classification.  The determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are.

Principal Residence ... a principal residence is the place a person lives or expects to return if they are temporarily away from it.  It could be a single family, detached home or condominium or a duplex, tri-plex or four-unit.  The owner(s) can deduct the qualified mortgage interest and property taxes on the schedule A of their tax return.  There is a capital gains exclusion on profit of up to $250,000 for a single taxpayer and up to $500,000 for a married

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Lexington, Ky. September 12, 2019 – Lexington-based Better Homes and Gardens Real Estate® Cypress has acquired Berea Realty and expands the Better Homes and Gardens® Real Estate brand into the Berea and Richmond, Ky. areas.

The company will move forward under the leadership of Principal Broker Kenny Whalen, Career Development Manager Joseph Delos Reyes, Director of Business Operations Debbie Scanish and co-owners Nick Ratliff, Kim Soper, David Graves and Brian Lubeck.

Berea Realty Broker Mark Cox will serve as Associate Broker and Manager of the Berea location at Better Homes and Gardens Real Estate® Cypress. He and his five agents will continue to serve clients throughout Madison County and into Estill, Fayette, Clark, Jessamine, Garrard,

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Making additional principal contributions to your mortgage will save interest, build equity and shorten the term on a fixed-rate mortgage.  The concept is sound but bi-weekly may not be the best way to do it. 

One strategy is to make a payment every two weeks throughout the year in the amount of half of your required principal and interest payment.  Twenty-six half payments would equal thirteen full payments which would be one extra full payment per year applied to the principal.

The practical problem with this approach is that lenders may not accept partial payments throughout the year.  This means that you'd have to arrange a third-party company to accept your payments and forward them at a time that is acceptable to the lender.  Likely, there

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Square footage is commonly used to determine if a home will fit a buyer's needs.  The price per square foot can be used to compare the costs of different homes and even, determine the value of a property.

The challenge is what is the source of the square footage measurement and how was it done.

County records use square footage to determine assessed value for property tax purposes.  They are assumed to be reliable but there can be inaccuracies in their tax rolls.  Another source of square footage could be from the house plans but the problem there is that the builder may have made modifications, or a subsequent owner could have made additions.

Appraisers are required to measure the home to determine square footage and they generally,

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Leverage is an investment term that describes the use of borrowed funds to control an asset; sometimes referred to as using other people's money.  Borrowed funds can affect the investment in your home positively.

For instance, if you had a $100,000 rental property, collected the rents and paid the expenses and had $10,000 left, you would earn a 10% return (divide the $10,000 by the $100,000.)  With no loan on the property, there is no leverage.

If you decided to get an 80% mortgage at 8%, you would owe an additional $6,400 in expenses leaving you only $3,600 net.  However, your return would grow to 18% because your investment is now $20,000 in cash (divide the $3,600 by $20,000.)

Leverage, the use of borrowed funds, causes the return to

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Aside from standing water in your yard or water running out from under a sink, the first indication that you might have a water leak comes from a larger than normal water bill.  Before calling a leak specialist or a plumber, there is a simple diagnostic you can perform.

Go through your home and make certain that all the faucets are turned off and that the toilets have indeed stopped filling the reserve.  Then, go to the water meter and make a mark on the lens where the dial is currently.  If there is water in the meter box, the meter itself could be leaking.

If the meter is still turning, the leak is between the meter and the house. By inspecting the area between the meter and the house, you can look for soft, muddy areas or grass that is

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First time on the real estate market since 1877! Yes, you read that right! 1877. That was the First line in my marketing of a recent listing I sold at 151 Duncan Ave. Paris, KY. During June/July 2019, had the honor of representing the seller of 151 Duncan Ave. in Paris and it was an experience I will never forget. I had phone calls and showing requests from individuals from all over the country. We had buyers come in from Wisconsin and Virginia and the day before we sold to the new buyer, we had a couple planning to fly in from Los Angeles, California to tour this special home. It was wonderful to watch this neat Kentucky home glow with such great national marketing exposure and really captivate old house lovers across the country. I sold 151 Duncan Ave.

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Owning a home is the first step to building equity.  Tenants build equity but not for themselves; they build it for the owners.

Equity is the difference in the value of the home and what is owed on the home.  There are two dynamics that cause this to grow: appreciation and principal reduction.

As the home increases in value, it is said to appreciate.  Various authorities will annualize an appreciation rate based on average sales prices from one year to the next.  Since appreciation is based on supply and demand as well as economic conditions, it will not be the same year after year. 

If you looked at a ten to twelve-year period, some would be higher than others and there may even be some individual years that it is flat or even declined.  For

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Whether you're an owner now or expect to be one in the future, it is important to be familiar with the federal tax laws that affect homeownership.  Since personal income tax was enacted in 1913 with the 16th amendment, homes have had preferential treatment.

The mortgage interest deduction is based on up to $750,000 of acquisition debt used to buy, build or improve a principal residence.  In addition to the interest, the property taxes are deductible, limited to the new $10,000 limit on the aggregate of state and local taxes (SALT).  The taxpayer may also deduct interest and property taxes subject to limits on a second home.

Homeowners can decide each year whether to take itemized personal deductions or the allowable standard deduction which

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