4 Best Ways for Selling a Home in Kentucky

A private sale is a quick way to get cash for your property while also avoiding the public exposure of a traditional real estate listing.

Homeowners involved in a private sale can skip advertising, open houses, the stream of house shoppers who tramp through all days of the week, and the long wait that is required when buyers need to locate a traditional mortgage to purchase a house.

If you aren’t familiar with this selling option, let’s explore the details now.

What Are Home Buying Companies?

The watchwords for home buying companies are “fast” and “cash.”

Professional residential real estate buyers don’t need a traditional mortgage lender to purchase your property. This impacts your sale because you can move at light speed to close.

There’s no wait for your buyer to get a mortgage approval and no time wasted on a wave of home inspectors that your buyer’s lender would demand in order to finance the deal.

If you have a single-family house, condo, multi-unit home, even a manufactured property, cash investors are interested in buying.

They buy investment properties in Kentucky in any condition, from turnkey move-in ready to a complete fixer.

Your home may be purchased to remodel and then flip to a new buyer, or it may be used as an investment that the cash buyer keeps and resells decades later.

Cash buyers are also interested in buying a home for rental income.

If you’re wondering how selling your house to an investor works, the process follows the same general format as a traditional sale, but it eliminates the many time-consuming steps.

A quick cash sale can benefit owners:

• selling a house before it goes to a foreclosure auction
• selling a property with sitting tenants
• selling a property before bankruptcy
• selling a home that needs work
• selling parents’ home after death
• selling a house with a state tax lien
• needing to sell a hoarder house
• selling as part of a divorce home sale
• needing to sell a house for a job relocation
• wanting to downsize to a smaller home

Cash buyers generally use Kentucky investor-friendly title companies with a history of closing properties quickly.

Pros of Selling to a Home Buying Company

Homeowners selling to Kentucky property investors have a number of valuable benefits that can add up to real savings.

• You’ll sell your house fast. If you need an urgent sale, an investor can often close in a matter of just days.

• You’ll sell your house for cash in Kentucky. This means no complications caused by the buyer’s need for a mortgage to be able to buy your home. Investors don’t need a mortgage.

• No need to spend your time and money getting the house ready for the market. Investors buy properties in as-is condition.

• You’ll save 2%-5% of the sales price. Unlike real estate agents, investors don’t charge commission fees.

• You’ll also save other home seller closing costs since investors typically pick up those fees!

Cons of Selling to a Home Buying Company

There is one downside to selling a home in Kentucky to a cash investor.

• Cash property buyers in Kentucky typically don’t offer market value for houses.

Why? Because they’re a business, and like all businesses, they need to make money. In this case, they need to buy your house cheaper to be able to resell it at its market value.

Plus, they need to account for any repairs that your home may need and that you won’t be required to do before closing.

There’s something else for sellers to weigh. If you aren’t paying real estate commissions, and your closing costs are covered — that’s money you don’t need to spend.

Looking at that cash savings might mean your final proceeds from the sale are more comparable to the ones from a Realtor-assisted sale than you may think.

How to Find an Ethical Home Buying Company

So, how to sell a home privately to an ethical home buying firm that won’t waste your time or trick you into selling too cheaply? This involves two key steps — finding investors and then vetting them.

Assembling a list of local investors is pretty easy. Start with mail advertisements you may have received. Add cash buyer names from “we buy houses” signs in your city.

Or, simply Google terms like “we buy houses,” “sell your house fast,” or “companies that buy homes.”

Once you have a list, it’s screening time. You want a local company with a list of closed sales, happy clients, and at least three years of experience in home buying.

Check the investment company websites for the background information you need. Look for an “About Us” or “Who We Are” page.

If the websites are missing this information, it’s time to move on. You need to know specifically who you are dealing with.

The next step is to look for happy clients and the absence of unhappy clients. Visit websites that track complaints.

These include Trustpilot, Real Estate Bees, Yelp, and the local branch of the Better Business Bureau (BBB).

If you aren’t seeing negative comments at any of these places, that typically means the investor has satisfied clients.

Vetting takes time, and when you want to sell fast, that time could mean money.

If you want to have a free resource where the vetting has been done for you, check out our website.

The cash investors partnering with us have been screened for expertise, longevity in business, and a history of closed sales. And you don’t pay anything for that screening.

Just fill out a short online form to start getting offers from local investors. There’s no obligation to accept any of them. And you never pay a commission or fee for anything.

Selling a home in Kentucky traditionally has a real estate professional take charge of the entire sales process.

Once you sign a listing agreement, your agent will assist you in preparing your house for the sale, help to set a price, aid in marketing your property, take on negotiating contracts, supervise during escrow and title, and then oversee your final closing.

Who Are Real Estate Agents?

Real estate agents are professionals that handle all aspects of a property sale for you.

They must hold licenses issued by the state. Agents operate as part of a brokerage that supervises all aspects of their work.

Selling a house in Kentucky involves a number of local, state, and federal regulations, and your agent is trained to make sure your transaction meets all of those rules and requirements.

Your agent is your fiduciary. That means they’ll represent you and put your interests first in all stages of the transaction.

Agents using the title of “Realtor” hold membership in the state branch of the National Association of Realtors (NAR), a professional trade group that promotes ethical real estate practices.

Let’s now weigh the pros and cons of using an agent to sell your property.

Pros of Using a Real Estate Agent

• Agents have the experience and expertise to handle the legal requirements involved in a property sale.

• Realtors use proprietary databases to help you set a price that can sell and still meets the market value set by a lender’s appraiser.

• Using an agent when selling a property in Kentucky allows you to focus on your life. They’re your fiduciary, so you’re not on the hook to do property showings and document wrangling.

Cons of Using a Real Estate Agent

• The cost of selling a house with a Realtor takes a serious amount of cash from your closing proceeds.

• Your house may sit on the market for some time, particularly if you’re selling a property in as-is condition.

• Agents frequently work with buyers who need mortgages. To get a mortgage, a buyer needs time. They’ll also need to put you through inspections and appraisals, which may or may not show your house qualifies for a loan.

How to Find a Good Real Estate Agent

There are lots of real estate agents in Kentucky, and that means work to take the time to select the best fit for you and your property.

Start by making up a list of potential agents. Collect names from family, friends, coworkers, and neighbors. Add names from mailers and billboard advertisements.

Once you have a handful of names, it’s time to screen the agents.

Begin by removing names of agents who don’t have a minimum of three years of experience, and knowledge of the properties and prior sales in your neighborhood.

Check the local branch of the Better Business Bureau (BBB) for complaints filed against any of the agents on your list. Do the same search on social media and local real estate websites.

Eliminate any agents with too many negative comments from clients. Contact the local office of the Kentucky Realtors, the state branch of the National Association of Realtors.

This trade association supervises their agents and handles any complaints filed against their members.

The last step is time-consuming, but it’s critical to finding the best match for you and your home.

Invite agents to do a formal listing and marketing presentation, and then pick the best one!

Selling your house yourself eliminates Realtor commissions, but a “for sale by owner” listing, known as an FSBO, leaves all the marketing, sales, and document wrangling to the homeowner.

The initial property owner challenge is setting a sales price. A home value lookup tool can help you do that.

The next challenge is to assimilate enough background information to handle real estate contract law, escrow procedures, and the steps involved in the closing transaction.

Once that’s done, you’ll need to start the search for potential buyers.

Ways to Market Your House Yourself

• Put out a “for sale” sign that lists your contact information so buyers can make an appointment for a showing.

• Make a virtual tour of your property to share on social media.

• Create a flyer that promotes the attractive features of your house that you can share with potential buyers at the home showing appointments.

• Use websites to advertise “for sale by owner” to spread the word about your home sale.

It’s important for property owners to balance the benefits and drawbacks of taking on a home sale themselves.

Pros of Marketing Your House Yourself

• Saving a part of Kentucky closing costs. You won’t be paying the 2.5% to 3% of the sales price in real estate agent commissions.

• Total control. You make the final decisions for all aspects of the home sale.

• Increased focus. You are your only client, and all your efforts can be directed to selling your property.

Cons of Marketing Your House Yourself

• You need to understand federal, state, and local regulations involved in a property sale. This takes time to prepare.

• You need to provide information to assist your buyers, including handling the complex assessment involved in making sure your sale price matches your buyer’s lender appraisal.

• The small errors you make can delay the closing, but any major mistakes can mean disaster, including the sale falling apart or a subpoena to appear in court.

• Your FSBO closing costs involve a complex mix of negotiations and pricing. And you may even end up with less cash out compared to using an agent when you aren’t real estate-savvy.

The last sales option is one where you have a house, but you’ve found another property that you want to buy.

Selling and buying at the same time is fairly common. You don’t want to sell your home without having a property to buy, so you wait to sell.

While you’re waiting, you discover the perfect home, but that requires quickly finding a buyer, and an even quicker closing.

That’s an unlikely scenario, so you end up making a contingency offer on your new home. That allows another buyer to jump in ahead of you if they’ve already sold their home or have cash to buy.

When you’re in this situation, Kentucky iBuyer companies can help.

An iBuyer will write a contract on your property that gives you the cash equity from your home to purchase your new house.

After closing on your new home, the iBuyer will finalize the transaction of your current house.

Problem solved. A quick, cash sale for your new house, and a speedy sale that uses cash from your current home. No waiting for buyers (especially the ones who need loan approval.)

Now you know how to sell a home in Kentucky. Choose one of the four ways that best fits your personal needs.

Now, let’s focus our attention on the general steps involved in selling a property in the Bluegrass State.

Before Signing a Purchase Contract

Whether you’re selling through an agent or representing yourself in the sale, you’ll need to get your house ready for touring potential buyers through the property, and also establish a sales price.

Real estate agents require a formal listing contract and other forms of disclosures that include real estate agency agreements.

Regardless of the method you elect to sell, you’ll need to complete several property disclosures for the house that describe current damage and any potential health risks.

These need to be given to potential buyers. You can find additional information regarding the disclosure by reading how to sell a Kentucky house in as is condition.

Marketing the Property

Developing a marketing plan is next up on the to-do list for Kentucky sellers.

Your plan will need to adapt to local market conditions, seasonal weather, and national finance trends, including interest rates and changing lending policies.

It may take weeks, sometimes months, before your marketing plan pays off and you find a buyer.

Investors, however, don’t require marketing efforts, and they purchase property in any season or market.

Accepting an Offer

You may receive a single offer, or multiple ones, on your property. This step involves reviewing the price and terms, and writing counter offers on some or all of the contracts.

It can take some time before you have a final agreement. The offers will include an earnest money deposit that will be put into an escrow account when you accept the offer.

Buyer Due Diligence Period

The due diligence period allows your buyer time to hire professional inspectors and arrange for financing.

The average time to close is 30-90 days, but if your buyer has issues found during the inspections or has trouble with a mortgage, it could take longer.

This is also the time your buyer takes out hazard insurance, and may also sign up for a title insurance policy and open a homeowner escrow account.

Investor sales don’t require these delays, since they use cash to buy. They can also close in just a few days.

Closing

Before the formal closing, your escrow officer will review your costs and fees. Your debit column will include various closing costs and real estate commissions (if you use an agent).

Selling to an investor typically doesn’t include commissions, and your cash buyer will also pay your closing costs.

Before collecting the final signatures for the transaction, your buyer will walk through the property to ensure it’s in the condition described in the sales contract.

The last step is signatures, document filing, and turning over the keys to the new owner.

Those are the steps for the most common types of home sales in Kentucky. The next step is selecting your sales method and contacting agents, iBuyers, and investors.

Contacting a cash buyer is easy! Request cash offers from the investors partnering with HouseCashin right now.

There’s never a fee to pay for this, and you’re never under any obligation to sell to any of the investors who made you an offer. It’s fast, easy, and free!