The Importance of a Real Estate Professional in Central Kentucky

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It’s important to use a Realtor when buying or selling a home. Often, sellers think about hiring a professional to get top dollar with the least amount of hassle, while buyers might use an agent to mediate the process.

The home search typically begins online. In fact, 92% of buyers use the Internet to start their search. Interestingly enough, 95% of homes sold still use a Realtor or Builder’s agent. There’s a high number of real estate professionals still involved in transactions. Only 2% of buyers purchase directly from a seller.
 

Although the Internet is a great way to start, buyers will eventually use a Realtor to help with the process. They have the experience to know how to handle a transaction efficiently. If you’re thinking about selling a home, don’t underestimate the role of a real estate professional!

As always, give me a call or email with any questions or concerns. I’d be happy to help you!

What Could Be Wrong With Your Listing?

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The residential housing market has been hot recently. Home sales have bounced back to their second-highest price since February 2007.

As we approach the winter, many agents report an increasing amount of multiple offer situations. Listings are sometimes selling above listing price. If your home hasn’t sold yet, take another look at your listing. It could be the price holding buyers back! Increasing a price by 10% can dramatically reduce the amount of interested buyers interacting with your listing.

 
The bottom line: the market is hot. If your listing isn’t getting showings despite active online activity, sit down with your agent. You could be over by up to 12%. Revisit the price. At Rector Hayden, we use “the price on target” model to determine how much to price your home.

Feel free to contact us about a free consultation. If you have any questions, give us a call!
 

Sell Your Central Kentucky Home this Holiday Season

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 Want to buy a Lexington Home? Search all homes for sale.

Many clients wait to sell their home after the holidays. Honestly, the holidays are a great time to sell. Here are some reasons why.

First, inventory is low. Sellers have less competition on the market. The inventory levels now are even lower compared to this time last year! Less competition helps your home stand out.

Second, buyers are more serious in the winter. These buyers, asking for showings during the holidays, are highly motivated to buy a home. Some may have been relocated by their employers, and need to be in a new home by January 1st.

Next, you have control over the showings. If you need a few days off from showings because of family, it's not a problem. We'll schedule showings to accommodate your schedule. You don't have to skip the celebrations when you sell during the holidays.
 

In fact, some homes show better during the holidays! These homes look nice and decorated. Your house might look its best this time of year. Take advantage of this opportunity. It's an excellent time to list and show buyers your beautiful home.

Finally, listings increase substantially after the holidays. We predict new construction will make a comeback in 2016. If you wait to sell your home until after the holidays, you will face more competition and less demand for your home.

Selling your home during the holidays is a fantastic opportunity! You will have less competition, more serious buyers, and you can still celebrate the holidays without the added stress of showings. If you have any questions, give us a call or send us an email. We look forward to hearing from you!

Where Can You Find the Most Detailed Central Kentucky Market Data?

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Today, we want to share a resource with you that will be updated on a monthly basis. It's called the Rector-Hayden Realtors (RHR) Report, and you can find it by following this link: http://rhrreport.com/. Every month, you can check that document to see what market conditions are like in Central Kentucky.

The RHR Report is a great place to go if you want a snapshot of the current market. The 10-page document is also a great place to look up market numbers dating as far back as 2008 in order to identify trends. You'll find pending sales, closed sales, the average sales prices by county, the number of listings on the market by price point, current month vs. past month sales, months of inventory, and many other important categories for people interested in what our market is up to.
 

When looking at the inventory, know that any price range that has over six months of inventory is a buyer's market, and anything less than six months is a market that is favorable for sellers. Again, if you want to take a look at where our market is heading, you can find the report here: http://rhrreport.com/. If you have any questions for us, please don't hesitate to call or email us at any time. We're always here to help!

How Can a Home Warranty Help You Sell a Home in Lexington?

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Today I'd like to speak about the importance of home warranties. Not a lot of people know, but they can be valuable to both buyers and sellers. I'll be explaining why this is true today.

The warranty that we recommend to our buyers is the HMS Home Warranty that is offered by Berkshire Hathaway. If I'm listing a home, I also like to recommend that my sellers also purchase a warranty for the home buyers. This is a nice gesture, and it's a major benefit for a buyer to purchase your home. It gives a buyer peace of mind, and that's extremely valuable in this industry.

One thing that sellers can do is purchase a home warranty up front and they will then be covered during the listing period. The sellers will only have to pay for the warranty once the home is closed. This essentially means that the sellers get a free home warranty.

This warranty covers all mechanical components including plumbing, electricity, hot water heaters, etc. Warranties don't cover pre-existing conditions, so you can't buy one and then have your roof replaced with it.

These policies aren't too expensive (they start around $500) and we don't make any money by selling them. We just think it's a great idea for our buyers and sellers.

As always, please don't hesitate to contact me if you need help buying or selling homes in Lexington!

What Exactly Are Appraisals and How Do they Work?

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Today we are excited to talk to you all about appraisals. We’ll go over what they are, how they work, and how they affect the purchase of your home.

Every time you write a contract, there will be a clause in there saying that a home has to appraise in order for the sale to go through. These aren’t required with every type of financing, but definitely are for FHA and VA loans. 

If the home doesn’t appraise out to at least the value it was purchased for, you have the option to void the contract and/or negotiate the price down. An important thing to remember about appraisals is that they are one person’s opinion on the value.

There is math and there are formulas involved in coming up with an appraised value, but there is some art to it as well. By using comparable homes, an appraiser will determine whether your house is priced fairly. If a new house sells the next day and it’s a more comparable home to yours than another one was, your home will then probably appraise a little differently. 

Even though you’ve had a home inspection, the appraisers have a responsibility to look for certain things and areas where improvements can be made. Sometimes you might get a conditional appraisal that says your home will appraise for x amount if you fix a certain problem. 

Hopefully this has been helpful to you. The appraisal typically takes about 48 hours to come back after it has been completed, and the lender will let you know when it comes in.

If you have any questions for us about appraisals, feel free to give us a call or send us an email. We can’t wait to hear from you!

Prepare for Your Central Kentucky Home Inspection

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 Today, we'll discuss the importance of home inspections.

We recommend that everyone who buys a home does a complete home inspection. In Central Kentucky, that entails having a licensed home inspector come in and examine the home.

You will also need a radon inspection. In our area, you have a 50/50 chance that there will be radon in the home, and you will need to get a mitigation system. The radon test takes place over a 48-hour period, so set up the radon test early to make sure it's done in accordance with the inspection period.

We also recommend having a termite inspection, although this usually happens outside of the inspection period.

The main home inspection takes about three to four hours. The inspector takes photographs and writes a report on any issues they have found. Then, they go over everything with the buyer. Usually they will walk through the house with the buyer to show them exactly what they are talking about, and the buyer can ask any questions they may have.

Ultimately, you'll negotiate on repairs with the seller. Prior to the closing, you will do a final walk-through of the home to see if all the repairs have been done, and you can go into closing with confidence.

If you have any questions on today's video, give me a call or send me an email. I'd be happy to help you!