How To Take Advantage Of The Hot Lexington Real Estate Market

Dated: 04/16/2018

Views: 1321

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Lexington is in probably the biggest seller’s market in its history, as we speak. At the current rate of residential sales, and assuming no additional homes are added to the market, every home in Lexington would be sold in approximately two months. I have seen homes listed for sale that were under contract within 24 hours of going active over and over again in recent months. 

I don’t expect the fundamentals of supply and demand to change much in the near future, either. City Council recently voted not to expand the urban service boundary, so there is no reason to expect a significant and sudden rise in the amount of attractive properties for residential development. Studies also suggest that Lexington is going to continue to gain nearly 20,000 people every year between now and 2040.

However, with recent economic trends, interest rates are expected to rise in the coming months. Buyers tend to be more concerned with the size of their monthly mortgage payment than the purchase price of a home itself, so rising interest rates mean it may soon get a bit more difficult for buyers to afford a home in the same price range they would be shopping in today. 

If you have been thinking of selling your home, particularly if it is valued at less than $200,000—there has never been a better time to do that than right now. 

That said, listing a home for sale in a seller’s market brings with it a unique set of considerations to ensure the best price, a timely sale, and a smooth transaction:

  • Well-represented buyers understand that they need to move fast. With homes transacting so quickly, buyer’s agents have counseled their clients that they need to be aggressive and prepared to make an offer when they find a home that they like. Working with a listing agent will expand the availability of when prospective buyers can view your home, so they are more likely to see yours before they make an offer on another. 

  • New listings receive three times as many online views in their first week. Even in a seller’s market, it is essential that a home be priced, staged, and photographed well when it is first listed, because that is when it is going to be seen the most. Buyers and buyers’agents usually receive email notifications when homes that meet their criteria are first listed, and are otherwise constantly browsing “new listings.”Purchasing a home is an emotional process, so in residential real estate, first-impressions profoundly matter. A positive first-impression to a prospective buyer can go a long way, and a negative one can sometimes be impossible to overcome. 

  • It’s still important to have a listing priced correctly up front. It may be tempting to over-price a property in a seller’s market, just to see how much someone might be willing to pay. However, even in such an environment, homes still rarely sell for more than their appraised value. If a home can’t appraise for the price being asked, a bank is not going to be willing to issue a mortgage loan to a buyer for that property. Further, listing a property for too much and then repeatedly lowering the price sends negative signals to buyers. It’s much better to have a home priced correctly up-front, so that it is included in the searches of those looking at new listings. This way, the listing is more likely to elicit multiple offer, go under contract faster, and appraise for at least the contract price. 

These are just a few of the more obvious considerations when listing a home in a seller’s market, but there are infinitely more, depending on the specific circumstances surrounding the seller and the property. It is almost always best to hire a professional in the industry to represent you in the sale of your largest and most important financial asset, even in a seller’s market. Something like 90% of all for-sale-by-owner properties are ultimately listed and sold with an agent. A good real estate agent will give you more value than the cost of their commission both in terms of helping your home sell for more and ensuring a smooth transaction. 

If you are considering selling your home, I would love to sit down with you and discuss what can be done to help you take advantage of this hot real estate market here in Central KY before interest rates rise. Likewise, I’m more than willing to answer any other real estate questions you may have as well. 

I can be reached anytime at thadsellsky@gmail.com or call/text at 859-469-3835. 



 

 

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