Louisville Real Estate: A Seller's F.A.Q.
Do I need a survey?
By determining the location of the boundaries of your property, it will ensure that your interests are served and investments protected. A survey is not required, but is highly recommended.
What happens at the closing?
At the closing, the buyer will be required to sign a mortgage, and a number of other legal documents. The seller will sign a deed, and several tax documents. Once you've passed papers, the buyer will be given the keys, and then own the property.
What is the difference between sales price and assessed value?
The selling price of a home is the value placed on it based upon other home sales in the area, condition of the property, and other factors.
The assessed value of a home is estimation used by the city to determine your property taxes. An assessed value has no bearing on the market value or sales price of a property, however they are often very close in valuation.
Is a pre-approved buyer better than a pre-qualified one?
A pre-qualification is a letter from a lender stating that, based on income and a rough idea of expenses, the buyer may qualify for a certain loan amount. A pre-qualification is not a guarantee that they will be able to obtain financing; it is solely an estimation of what they can afford.
A pre-approval means the buyer has already submitted a loan application and most of the necessary paperwork to obtain a mortgage. The loan has already been approved, subject to finding a property that appraises for that loan amount and buyer has not changed any significant information or job status.
Pre-approved buyers, therefore, have a distinct advantage when making an offer on a property. Most sellers are more likely to accept an offer when they know the buyer will not have a problem getting a loan.
What is KHC?
Kentucky Housing Corporation, created by the 1972 General Assembly, is a self-supporting, public corporation of the Commonwealth of Kentucky administratively attached to the Finance and Administration Cabinet. A portion of KHC funds are derived from the interest earned through the sale of tax-exempt mortgage revenue bonds. From these proceeds, KHC has made homeownership possible for over 52,000 low- and moderate-income Kentucky families. KHC also operates through the receipt of fees for administering federal programs including rental assistance that makes safe, decent, affordable housing available to more than 20,000 low-income Kentuckians. Other programs additionally offered by KHC include rental housing production financing, homeownership education/counseling and a variety of rental assistance, housing rehabilitation and home repair initiatives
How should I prepare to sell my house?
You need to start by taking a close, objective look at the property. Walk around the exterior with a pad of paper and write down EVERYTHING that needs to be done to make the house look it's best. Do the same inside and then sit down and determine how much time and money you can put into making the property most appealing to perspective buyers. You may want to consider putting some of your belongings in storage to open up some space in the rooms and closets.
This is usually one of the most difficult aspects of selling and sometimes it helps to have an unbiased point of view. Your real estate agent will be happy to help you evaluate your home
How is an asking price determined?
Asking price is usually set using a CMA or Comparative Market Analysis. This method uses other properties that are similar in size, style, and condition, that are currently on the market or have recently sold, to determine a reasonable price. It also may be the result of independent appraisals or broker's opinion of value and current market conditions.
What repairs should I make before selling?
While you want to be sure your home is as appealing to potential buyers as possible, you need to be careful not to overextend yourself on repairs before selling. Too often a homeowner will invest huge amounts of time and money in repairs just to realize that much of that money will not be recouped in a higher sale price.
Is it to My Advantage to Sell "By Owner"?
The majority of the people who sell by owner want to avoid the cost and commission of hiring an agent. This is a very time consuming and challenging task to pursue. One reason for this is that FSBO's (For Sale By Owner) don't have the resources that real estate agents have at their fingertips - the large customer base, financial and legal ties, knowledge of local customs, and most importantly, patience. As a result, many FSBO's overprice their properties.
If you are the kind of person who appreciates a challenge, best wishes to you. However, if you are like most people, you have a time-consuming job and a family to take care of, and don't need the extra hassle of managing real estate. That is why agents exist today.
What documents should I leave in the house for the new owner?
Any important documents such as any warranties or owner's manuals on appliances that are staying in the house. Also, information on the heating system, water heater, roof repairs, new windows, or anything else you can think of will come in handy for the new owner once they take possession of the property.
What is the difference between an appraisal and a CMA?
An appraisal is performed by a certified appraiser who uses comparable homes in the area, condition of the property, etc. to determine an official value. An appraisal usually ranges in cost between $225 and $500.A Comparable Market Analysis (CMA) is usually done by a Real Estate Agent and uses many of the same factors (comparable properties, condition, etc.) to determine an estimated value. A CMA is almost always performed free of charge.