Wondering what the real estate market in Lexington Ky is like right now? This house here is a prime example. This place came on the market on 11/9/09 for $217,500. It sat there, was reduced to $212,900, then $209,900, and finally sold on 8/20/10 for $209,500. On top of that, the seller paid $3911 in the buyer’s closing costs, so the “Net” sale price was $205,589…….It just sold in 13 days for $219,000. That is a gain of almost 7% in less than 2 years!
I was in this house before it sold in 2010 and have studied the pictures to see if the seller put any money in improvements. I also looked at the disclosure to see if the roof or HVAC had been replaced since the sale. Nada. Same flooring, same cabinets, same counter tops. About the only thing the seller did was landscaping. The house was vacant when it sold last and was fully furnished for this sale. I might say 1-2% of the appreciation could be due to those reasons. But one thing we do know, taking almost a year before selling in 2010, the buyer didn’t get a bargain. Houses that were bargains even back in the worst of the past several years still sold quickly.
Now that the market is improving, here is where we are: The most sought after neighborhoods have already gone up in value. The rest of the market is still pretty flat. It is like a train starting…..first the locomotive moves and pulls the first car, then the locomotive AND the first call pull the second car, then the locomotive, first and second car pull the third, and so on until the whole thing is moving.
You are late to the party if you were wanting a deal in one of the most desirable neighborhoods in Lexington. There is still time at the moment to grab a deal in other neighborhoods though. I usually recommend the best neighborhoods for resale potential, but if you can get a good enough bargain, I think there is room to come out ahead as the market continues marching back to the future.