Ready to sell? Now comes the tough part: understanding how to determine home values in Louisville. Often, homeowners have a hard time separating the emotional value of the home from the actual financial value. This makes determining the value an extremely difficult process. It also results in pricing the home far out of range as compared to other properties on the market. With an understanding of how professionals value property, you can save yourself from falling into this trap. Remember, real estate is a business; it all comes down to the numbers. Home values in Louisville are always changing, so keep the following topics in mind before you sell and throughout the process!
CMA
A Comparative Market Analysis, commonly known as a CMA, helps professionals determine home values in Louisville. A CMA compares the most similar properties located near the property you wish to sell. The process uses predetermined values for additional features, such as a 2-car garage compared to a one-car garage. If comparable properties surrounding the home have features that your property lacks, these predetermined values are deducted from the average selling price of the most likely properties. This gives you an idea of how your home should be priced.
Regardless of which style of listing you select to sell your home, you should have your own CMA performed. This way, you’ll know the value of your home, based on the current actual market value. By knowing the actual value of your home, you avoid being shocked or insulted at what you may feel is an insultingly low offer from a buyer.
Holding Costs
Often homeowners who try to sell their homes on their own find themselves tangled in the web of internet marketing. After a great deal of time has passed in which the home does not sell, many often turn to a real estate agent in the hopes of quickening the sale.
Whether you choose to sell your home on your own or list it with an agent, one thing is certain: There is no way to determine how long your home will be on the market as a listing. You must take this into consideration when you determine the value of your home. You may consider lowering your asking price to stand out among the competition, as buyers filter their online searches by home values in Louisville.
Commissions
When you set out to determine home values in Louisville, be sure to consider commissions if you decide to work with a real estate agent. This is in addition to your marketing costs. The commission is based on a percentage of the sale price.
The typical commission is near 3% per side, and as there are two sides in a real estate transaction, a home selling for $400,000 would deduct $24,000 from your profits alone, along with the traditional seller’s closing fees. It’s also possible that the closing agent and the real estate agent’s offices could charge transaction fees.
Repair Costs
Being forewarned is being forearmed, and never is this truer than when you’re selling your home. You should plan to order an inspection of the property. If something is seriously wrong with the property structure, the buyer may require you to fix it, or make other smaller repairs out of pocket before closing. It’s wise to contact professionals for at least two estimates of repairs, preferably three. If you’re planning to do the repairs yourself, create a realistic budget.
With reliable data in your hands regarding the project timeline and expenditures, you can make an informed decision. You’ll have to determine if you want to go ahead and invest more in the home and make the repairs in order to reap a larger profit or sell the property “as-is.” Deducting this expense from the asking price will give you a realistic current market value. You’ll be able to determine if an offer is fair for your home compared to other home values in Louisville.
We Can Help
Our husband and wife team, Daniel and Catherine Close, are professional buyers who can walk you through each step of the process. We’re pros at determining home values in Louisville. We can help you decide if selling to a professional buyer is the best choice for your property. We Buy Houses in Kentucky typically closes in 30 days or less, and we don’t take more away from your asking price. Everything is figured into our offer.
We don’t charge commissions or transaction fees or require repairs, meaning no more waiting and thousands of dollars in overall savings!
Please send us a message or give us a call today at (502) 383-1484 to discuss selling your house in Louisville, Kentucky and surrounding areas, including: Bardstown, Fern Creek, Highview, Jeffersontown, La Grange, Lyndon, Mount Washington, Newburg, Okolona, Shelbyville, Shepherdsville, Shively, St. Matthews, Taylorsville and Valley Station. We also buy homes in Southern Indiana, including these areas: Clarksville, Jeffersonville and New Albany.
