If you saw theÂ Courier JournalÂ on Sunday, May 19, you may have noticed a familiar face in the Business section: mine. I was quoted as part of an article on what is happening in Louisville real estates. For the first time in several years, we are seeingÂ multiple bids on Louisville homes for sale.
There is no hard data on how many sales see multiple offers, but many agents in our area are seeing the same. In my own case, this has happened on four of my current 14 pending sales.
This is extremely good news for sellers â€“and for buyers who plan to occupy the homes.Â Â In the past, investors got saw deals on bank-owned properties and got into bidding wars, but as I mentioned in the paper, â€œfor regular, vanilla, Mr. Buyer and Mrs. Seller, you werenâ€™t really seeing it past 2006 or 2007.â€
Here is the deal though. Homes that bring multiple offers are in great shape and are priced right. Many buyers want homes in â€œmove-inâ€ condition and are willing to fight for them. Assuming that the price is right, it is my experience that will happen.
Sellers who hope to see a fast sale at a good price need to prepare the home to move. New paint, new tile, some yard work â€“ all these things make a difference now more than ever.Â Â As I mentioned in the paper, â€œin the early 2000s, it was like you put a sign in the yard and the house sells. The difference is the work that is done upfront (by sellers) now.â€
Sellers are often personally invested in their home, which makes them resistant to pricing it at the appropriate market value. Homes that are priced too high linger on the market. Some people want to try to price their home at a high value in hopes they will get some buyers interested, but this is bad strategy. In this climate, where buyers know that housing is moving slowly, yet they regard the length of time on the market and the price cuts as an indication of two things:
Â·Â Â Â Â Â Â Â Â There must be something wrong with the place if it has been on the market a while.
Â·Â Â Â Â Â Â Â Â If the sellers have continues to lower their price, the price might be lower yet.
Neither may be true, but buyers think that way. That is why I encourage sellers to price it right in the beginning. Buyers can recognize a bargain and may bid up the price on a home that is well-priced.
Multiple offers, increasing buyer confidence, and record low mortgage prices are all working in favor of sellers who position their home to sell. Median sales prices are up 4% this past month to $133,463, whileÂ Â mortgage rates on 15 and 30-years continue to drop. The 3.83 rate on 30-years loans has never been seen in the over 60 years that long-term mortgages have been offered.
As buyers snatch up homes, the market is becoming more balanced â€“ a situation where there are about six months ofÂ Â homes at all price points available. Right now, we have seven monthsâ€™ worth. A particular home might not appeal to a buyer or may be out their price range, so having a supply of homes that move briskly is the best way for sellers to get fair prices and buyers to have a selection of homes they want and can afford.
If you are thinking of selling your home, the time is right. Before you get too far into the process though, give me a call for tips onÂ what you need to do to make it sellÂ and how to price it. If youâ€™re a buyer, I can hook you up with just the right property. Iâ€™mÂ Jessica GainesÂ of Louisville Real Estate, your home town real estate agent.