So you have found a home you love. It's priced at $149,000 and just went on the market 2 days ago. It is updated and in a great location. You are the 5th person to see the house. You want the home and are ready to make an offer. Your real estate agent checks the comparisons of homes sold over the past 90 days in that area and suggests you offer at least $146,000, if not the full asking price. However, you want a "deal". You think, the market is still recovering and I can lowball . . . right? So you convince your realtor to submit an offer for $141,000. That sounds fair . . . right? They will counter me, then I will counter them and we will eventually come in about $144,000 . . . right? Wrong!
The home sells for $149,000 (full asking price). You are shocked and ask how this can be.
With home sales in Louisville up almost 20% over last year at this time it is a great time to buy or sell. For sellers it is especially a great time to list a home. The Louisville KY real estate inventory is at its lowest in 10 years. "A great house comes on the market and I call to set up an appointment and the home is already under contract", says Jackie Wilson a realtor for The Jimmy Welch Team. She also says, "The market is so hot right now that a buyer must be pre-approved and ready to make a legitimate offer." Jackie empasized "legitimate" meaning in today's market if a house shows well, just went on the market and has multiple showings in the first 1-2 days, a buyer making a lowball or unrealistic offer isn't going to get the home.
Louisville area statistics back up Jackie's view. Year-to-date 2013 the average days a home for sale is on the market is 141. In 2012 the average days on the market was 167. An 18% decrease and the days on the market is expected to drop even more heading into the springtime. Even more promising is this decrease in days on the market is in what is typically a slower time of year (January & February).
Just this year The Jimmy Welch Team has sold 7 of our listings in 9 days or less! Jimmy Welch, Team Leader, and Angie Maloney, Listing Specialists, specialize in selling your home. Our team prides itself on the ability to sell our listings by pricing the home realistically, using a professional photographer to take the pictures and marketing the listing on social media to get as much exposure as possible. We have also just given our website (www.jimmywelch.com) a fresh new look.
But what sets us apart from other realtors in Louisville is our staff! Our Buyer's Agents have the ability and knowhow to guide homebuyers as to what they should offer for a home. They will examine comparisions of other homes in the area which are for sale and have previously sold. Ultimately, the offer a buyer wants to make is up to the buyer. But a buyer needs to know the current market and that "lowballing" the price for their perfect property greatly jeopordizes their chances of getting the home they have dreamed of.
Jackie just had this happen. A wonderful couple she has been working with found a home for sale in Louisville they absolutely loved but they had it in their mind they wanted a "deal". Jackie advised them the home wouldn't last long because of the lack of inventory and there had already been several other buyers look at it in just 2 days. Unfortunately, they didn't take her advice and lost the home over just a couple thousand dollars which would have resulted in just $12 more to their monthly mortgage. "They were devastated and it was unfortunate that they wouldn't take my recommendation", said Jackie. "Yes, the average discount for the Louisville area is about 4% but there are other factors to consider when making an offer so buyers really need to listen to their agents and make respectable offers", she adds.
To sum it up . . . Be Well-Informed, Be Open-Minded, Be Realistic and don't let Pride affect your judgement when submitting an offer!
Looking for a realtor to help you buy a home? Call Jackie Wilson at 502.419.9635, Jennifer Downs at 502.417.1840 or Audrey Black at 517.749.5768 with The Jimmy Welch Team. Want to sell your home? Call Jimmy or Angie at 502.554.9533. Or visit our website - www.jimmywelch.com.
About The Jimmy Welch Team:
Offering more than 25 years of combined real estate experience, The Jimmy Welch Team is a Louisville KY real estate company providing a wide range of services. Covering Louisville KY as well as the surrounding areas of Bullitt, Oldham and Shelby Counties, the company assists home sellers and home buyers in making their transactions run smoothly. Customers can call The Jimmy Welch Team at 502-554-9533 or visit us at www.jimmywelch.com.