Buying a home

Buyers in a Seller's Market

We are experiencing a crazy Seller's market right now, both nation-wide and in our Louisville Market. We are seeing low inventory and multiple offers on new listings, rising well beyond list price. According to the Greater Louisville Association of realtors, April home sales were up 15.8% over last year, average sales prices were up nearly 10% and the average number of days on the market are nearly cut in half. Interest rates are still very low, and, as we begin to emerge from the pandemic, we see that people are ready to get moving again. 

It may seem overwhelming to dip your toe in the waters when considering to purchase a home in this frantic environment. Here are some professional tips to consider when preparing to buy:

GET PRE-APPROVED - Getting pre-approved by a reputable lender is a great way to prevent potential heartache and to help set your expectations before you even step foot inside a potential home. With the current multiple offer situation on new listings, I recommend avoiding homes at the top of your price range and definitely not above it. Doing so will likely lead to frustration and disappointment.

Sellers and their Realtors will look at pre-approval letters at the time you make an offer and look for legitimate lenders who have checked your credit, verified your income, identified the type of loan you need, and various other important factors. A pre-approval letter that provides as much detail as possible helps the Seller know you’re a good, serious candidate who will work in earnest to get to the closing table with the least amount of hiccups.

DETERMINE WHERE YOU WANT TO LIVE - Before you start looking at homes, talk to your Realtor and do some research about different areas. I always recommend driving in the day-time and night to make sure certain areas are right for you.

Determine what is most important: Proximity...

The Louisville Real Estate Market and the Covid-19 Virus

Covid-19 and Louisville Real Estate

Believe it or not, the Louisville real estate market is moving right along as we experience this pandemic. I’m sure the market will not be as strong as a typical Spring, though we are seeing evidence that predict it will be stronger than at the onset of the 2008 mortgage crisis. 

Many factors continue to affect the sale of a home, including location, condition, price point, and days on market. Buyers still need to buy for various reasons, especially now when interest rates are still very low. If a properly priced home hits the market right now, you can bet it will be noticed and most-likely elicit an offer. 

Thankfully, Realtors are currently considered essential in the workforce. We continue to meet the needs of our clients and are developing creative and efficient ways to keep safety for all a top priority. Buyers and browsers will see less physical open houses (because Andy says, “We can’t be doing that!”) and more detailed virtual tours online. With FaceTime, Zoom, email and e-signing capabilities, meetings are happening with ease without having to leaving the home. 

Should you decide to tour a home, your agent should investigate whether the environment is safe. They should ask if all parties (buyers and sellers) are feeling well, and should make sure gloves, masks, booties and hand sanitizer are on hand for showings. We want to provide our buyers the opportunity to see a home of interest in a timely manner while keeping conditions safe for all....

What Makes a Great Home Offer?

We're about to head into the busiest home-buying season of the year. Want to make sure your offer stands out in a bidding war? 
A great offer includes:
  • The right price: Don't go by listing price only. Factor in comparable sales, the home's condition and local demand.
  • Proof of Funds (if using cash) or Pre-approval (if using a mortgage): This shows you've talked to a lender, have planned ahead and are serious about buying the home. Please know exactly what is in a pre-approval letter, some letters are stronger than others.
  • Flexible Terms: Closing timeframe, earnest money amount, inspection terms, plus other important factors can help reduce red flags or concerns of the Seller.
  • Should you write a personal letter or not? Speak with your Realtor about potential Fair Housing implications if you want to write a letter.
An experienced agent is your best resource when making an offer. Reach out if buying a home is on your radar this year.
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