So, you are just starting out and you want to buy your first Louisville home. As a Realtor® who specializes in first time homebuyers, that is music to my ears. I welcome you to pick up the phone sooner rather than later, so I can assist you in the process, but if you are like the 80% plus of potential new buyers, you will start your search on the internet. You will see some homes you like. You will narrow down the neighborhood and do some thinking about your finances. Hopefully, you will do some serious thinking about what you need vs. want in home, and have prepared yourself for the reality that your first home may not contain the ultimate features you seek in your ideal residence.
Your research reveals that the average housing price in Louisville last month was $173,415, while the median was $144,250. You quickly learn that these numbers are like the "your mileage may vary" caveats that automakers put on new cars. If you dream of living in Butchertown, the averages in one part nearest to Downtown are less than $47,000, but shoot up to $114,000 in the part near the Central Downtown District and $197,000 in the section nearer to The Highlands. This can be confusing if you are not familiar with the shades of difference within neighborhoods.
In an effort to be in the neighborhood you want, you may think that a foreclosed property is your answer. According to recent statistics reported by RealtyTrac and compiled in the Louisville Business Journal, foreclosures in Kentucky are available for 39.2% less than other properties.
On the face of it, buying a bank owned home might be a great way to save money, but properties like that can be in terrible shape. The homes might have been ransacked by former owners or vandals, and then left sitting for a while by the bank. Prospective homebuyers are often shocked to find missing plumbing and wiring, missing appliances and fixtures, holes in the wall, missing doors, not to mention mold and structural or system damage. To make the home livable, buyers must be prepared to sink in more money. A renovated foreclosure might be a dream home, but for first time homebuyers short on cash and perhaps lacking the skills to undertake a major part of the work themselves, foreclosures can be money pits.
There are some foreclosures that are closer to being livable when you first buy the home and may require a more manageable amount of work to make them to ready to occupy. This category of foreclosure tends to be in high demand. As an individual who wants a primary residence for your family, you may be in competition with investors who want to flip a home for a quick profit or rehab and rent it.
The realities of first time home buying all point toward calling a first time buyer specialist sooner rather than later? Why?
A Realtor® is who is a local expert can find you an affordable home that meets your requirements. If you have your heart set on Butchertown, but there is nothing there that would work for you or keep you within budget, an experienced agent can suggest alternatives.
If you are thinking of buying a foreclosure or even a short sale, your agent can help you figure out what you can handle or maybe even show you alternative properties that not foreclosures within your price range. If you still want to go the foreclosure route, the agent can help you negotiate your offer and advocate for you with the seller so that yours is accepted over an investor's offer.
As a Realtor, I love it when buyers have done their homework on the internet. I also love it when they call me early in the process for a consultation. Many times, I can save them from a lot of wheel-spinning and help them zero in on what they need to do to make first time ownership a reality now when prices and interest rates are low. I may point them toward a few lenders for pre-qualification to target their search to homes in their affordable range. I may help them more clearly define what they want.
If you are thinking about a home in Butchertown or anywhere else in the Louisville area, call Younger Group Real Estate! We know Louisville!! Our team will be there every step of the way. Coming soon to our website - a special first time homebuyer's page!
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