Hi, I'm Todd Kornack with Schuler Bauer Real Estate Services. After a lot of showings, kitchen table talks and late night texts, I have noticed the same questions come up again and again. Here are my plain answers.
How much do I need for a down payment?
Less than most people think. Some loan programs allow a small down payment, and VA and USDA loans can allow zero down for buyers who qualify. Twenty percent is not required, though it does avoid mortgage insurance on a conventional loan. The best first step is talking with a lender, who can tell you exactly what fits your situation.
Should I get preapproved before I look?
Yes. Preapproval tells you what price range is realistic, and it tells sellers your offer has weight behind it. It also keeps you from falling for a house you cannot buy.
Who pays closing costs?
Both sides pay some. Buyers usually cover costs tied to the new loan, like lender fees, the appraisal and the start of the escrow account. Sellers usually pay to deliver clean title, and in Kentucky that includes the state transfer tax of $1 per $1,000 of value. A lot of this is negotiable, and in today's market asking a seller to help with your costs is very much on the table.
Is now a good time to buy?
It is a better time for buyers than it has been in a while. My November update counted roughly 3,500 active listings across both sides of the river, and the median sales price was right around $300,000 in Greater Louisville and near $285,000 in Southern Indiana. Rates are higher than buyers would like, but more choices mean more room to negotiate on price, repairs or a rate buydown.
How much should I offer?
It depends on the house, not a rule of thumb. I look at recent nearby sales, how long the home has been listed and whether the price has been cut. In Clark County in September, homes that sold closed at about 96.9% of list price. In La Grange, homes sold at about 98.5% of asking over the summer. Those numbers help us decide where to start.
Do I really need an inspection?
Yes. An inspection is your chance to learn about the roof, the furnace, the plumbing and anything hidden. On rural homes, add a septic inspection and a well water test.
Can I buy in Indiana if I work in Louisville?
Absolutely, and lots of people do. I am licensed in both Kentucky and Indiana, so I can show you homes in Jeffersonville, New Albany and Clarksville as easily as in Louisville or La Grange.
How long does it take to close?
Usually about 30 to 45 days from accepted offer, depending on your loan and the title work. Cash can be faster.
Have a question that is not on this list? Send it my way. Odds are someone else is wondering too.
Todd Kornack, Schuler Bauer Real Estate Services. Your agent on both sides of the river. Call or text (502) 232 1915 or visit https://toddsellskentuckiana.huzi.site/
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