Selling A House in Louisville 101: We Answered Your Biggest Questions
Moving is stressful. According to the New York Post, 45% of surveyed people cited moving as their most stressful life event. It makes sense. There are so many unknowns to consider:
- Is the market in your favor?
- Should you buy a new home before selling your old one?
- How much work do I need to do to get my home ready for sale?
The best way to reduce stress is to be informed. We’ve put together a guide to answer the most common questions of our clients. Our highest goal is to help you along the way.
How much is my Louisville home worth?
If your home is valued higher than what you paid, it’s hard to not see dollar signs in your eyes. The selling process can go from stressful to exciting pretty quickly.
There are two ways to decide on a listing price for your home:
- Order an appraisal.
The appraiser will check out the technical value of your home. Although you can show them any improvements you’ve made to the property, an appraiser may uncover needed repairs during the process. You can opt to do these repairs to further increase your home’s value. With an official appraisal, there shouldn’t be any surprises during the inspection phase.
- Order “comps” from your real estate agent.
Your real estate agent will use three things to help determine an accurate price point:
*Comparable market statistics
*Local real estate climate
We prefer to use a combination of the two when determining the listing price. The appraiser will look at your home value from a technical standpoint. Your real estate agent will give you a full picture of what’s realistic in the current market.
What does contingent mean?
While the home undergoes an appraisal, home inspection, title searches and mortgage details, your house is in “contingent status” after an offer is accepted. Many sellers opt to keep their listing “live” during this phase as a backup plan. This way, if your buyer falls through, you can stay on the radar of other local house hunters.
How much are closing costs? Is that something I need to prepare to pay?
In 2022, Louisville closing costs are an average of 3.42% of the final sale price. Though the buyer may default to pay closing costs, this is actually a common negotiation point. In fact, having multiple parties interested in your home gives you a solid position to confidently deny any requests to pay closing costs.
Do I pay the realtor fees?
Yes. In Louisville, the seller typically pays the realtor fees for all agents involved in the sale. The good news…you won’t feel this hit in your bank account. Realtor fees are baked into the price of the home and are paid out by the mortgage company when the home sells. What does this mean? Even if you are technically paying your realtor’s salary, you won’t have to deal with any of the logistics.
My house has been on the market for several months. Does that look bad?
Unfortunately, yes. It’s true that after 6 months on the market prospective buyers will start to wonder if there’s something wrong with the house. You have a couple of options in this scenario:
1)You can try lowering the listing price
2) Take your home off-market and try again next spring with a more aggressive marketing plan.
Should I consider listing for sale by owner?
It’s certainly tempting to opt out of realtor commissions, but we strongly advise against it. Without a real estate agent, selling your home is a full-time job and requires legal precision. Because of these factors, there are many potential setbacks. Many agents representing buyers will avoid showing FSBO listings to avoid “emotional sales” or avoid dealing with unprofessional negotiators.
When should I put my house on the market?
Spring is the universal start of “real estate season”. Demand is at its highest and there are serious buyers in the spring. The biggest reason? It’s the most convenient time for families. If the buyer puts in an offer in the spring they can move in the summer when the kids are out of school and still have a few months to get settled before the start of the new school year.
How much work should I do to my house before putting it on the market?
That depends on your comfort zone! Simple tasks like planting flowers in the garden, power washing the outside spaces and slapping on a new coat of paint can make a big difference in your home’s appeal.
If the appraisal exposes the need for high-dollar projects (roofing issues, HVAC, etc.) you will have a decision to make. You can fix these issues on your dime ahead of time or you can anticipate lowering the sale price to account for the cost.
How do I sell my house fast?
The best way to ensure a quick sale is to hire a real estate agent that prioritizes marketing. A strong marketing plan includes:
- Staging services
- High-resolution photos
- Virtual tours
- Video walkthroughs
- Listing our home on Zillow, MLS, and other sites
- Promoting your home on social media
- Hosting open houses
Did we miss something?
Let us know! Collier Title has been in the Louisville real estate business for years. We know this market in and out. We’d love to help you out in any way we can.
Questions about buying a home?
Read this article to have all your questions answered about e-town house hunting and buying!