How to sell a house by owner in Kentucky

Selling a home without a Realtor in the Bluegrass State offers some enticing benefits. For one, it lets you call the shots and take the lead throughout your sale. But more importantly, the “for sale by owner” (FSBO) route can save you thousands of dollars in real estate commissions. The trade-off, however, is that these types of sales require a significant amount of work. If you think you’re up for the challenge, keep reading to learn what’s involved in selling a house by owner in Kentucky.

Selling a house without a Realtor in Kentucky

When you sell a house without a real estate agent by your side, you’ll assume all of their typical duties. Here are some of the main responsibilities you’ll take on as a FSBO seller: 

Choose an asking price

One of your first tasks will be to determine how much your home is worth — and, based on that information, set an asking price. As of October 2024, Redfin data shows that Kentucky’s median home sale price was $265,000. But prices could be lower or higher in your specific area: For example, Louisville’s median was close to the statewide figure at $260,000, while in Lexington it was higher at $332,000, and in Owensboro, it was just $217,450.

For an accurate estimate of your home’s value, look up real estate comparables (or “comps” for short) from your area. This will tell you how much similar houses have sold for, as well as how long they’re spending on the market. Then, you can use this information to come up with an asking price that accurately reflects your home’s condition and local market trends.

Create a listing

Once you’ve settled on a price, you can put together your listing. Start by writing a compelling overview of your property, covering all the relevant details, such as: 

• Year built
• Square footage and lot size
• Number of bedrooms and bathrooms
• Special features, such as a barn, stable or swimming pool
• Information about the neighborhood, school district and homeowner’s association (if applicable)

Don’t forget to include high-quality photos of your home’s interior and exterior, potentially with a floor plan and a video tour as well. Eye-catching images don’t just liven up your listing, they can make or break it. House-hunters look online before they even consider coming to see a place in person, and if your listing doesn’t grab their attention, they may just keep scrolling without giving it a chance.

Market your property

Now, it’s time to promote your listing to buyers. Putting it on your local multiple listing service (MLS) is the most reliable way to make sure it’s seen by the widest pool of homebuyers. This compilation of for-sale properties in a particular area is usually only accessible to real estate agents, but as an owner-seller, you can pay an online service (often called flat-fee companies) to list your home on the MLS for you. In Kentucky, these sorts of companies include DIY Flat Fee, Kentucky Flat Fee MLS, Flat Fee Group and Houzeo.

You can also advertise your listing by leaving flyers around town, posting on social media or using community websites like Nextdoor and Craigslist. If you do decide to promote it online, just be mindful of how much personal information you share (particularly if you still live in the house).

Your marketing plan should include in-person home tours, too, either in the form of open houses or private, by-appointment showings. Before anyone comes over, take the time to clean, declutter and lock up any valuables. And use caution when opening up your home to strangers.

Close the deal

If all goes well, you’ll end up with at least one offer. Without an agent to advocate for you, it’s your job to negotiate directly with the buyer or their agent on things like price and timeline. They might also request some concessions (like paying for certain repairs or closing costs), so you’ll need to decide what you’re willing to offer.

Once you’ve reached a deal, it’s time to draw up the purchase contract. These documents are complex and legally binding, so it’s a good idea to have a real estate attorney draft, or at least review, your contract. You’ll need a lawyer to help with closing duties anyway — Kentucky is one of several states that requires an attorney to oversee real estate closings — so it makes sense to have them vet your contract as well.

Required disclosures for Kentucky home sellers

When you sell a residential property in Kentucky, you must complete a seller’s disclosure form. In this five-page document, you’ll provide information about the home’s condition, including any known problems with its plumbing and electrical systems, foundation, water supply or sewer system. If you’re aware of the existence of lead-based paint or radon on the property, you’ll need to explain that as well.

Depending on where you live, there may be local disclosure requirements, too, so be sure to look up the laws in your city and county. In addition, if the home being sold is part of a homeowners association, you’ll need to provide documentation about its rules, fees and financial status.

Pros and cons of selling a house by owner in Kentucky

There are major advantages to FSBO sales, especially if you’re an experienced seller. However, there are drawbacks and risks to consider as well.

Pros

• Commission savings: In a FSBO arrangement, there’s no need to pay a listing agent’s commission fee, which is typically between 2.5 and 3 percent of a home’s price. That represents some substantial savings: If your house sold for Kentucky’s median sale price of $265,000, you’d save between $6,625 and $7,950. (Keep in mind, though, that you may still have to pay your buyer’s agent’s fee. The details of who pays for what should be clearly spelled out in your contract.)
• Full control: As an owner-seller, you make all of the decisions and can create a selling strategy that feels right to you. From choosing an asking price to negotiating with buyers, it’s all entirely your call.
• Less waiting: It’s standard practice for Realtors to have multiple clients at the same time. If you’re one of many, you might face delays in scheduling or response times. But in a FSBO sale, you don’t have to work around anyone else’s schedule.

Cons

• Lack of guidance: Real estate agents are licensed professionals who know their markets extremely well and deal with home sales day in and day out. Without this type of experience to guide you, the selling process can be quite challenging. And in a transaction this big, a mistake can have serious consequences.
• Restricted pool of buyers: Part of an agent’s job is to promote your property — and they usually have large, well-established professional networks to help them do so. As an independent seller, you likely don’t have these sorts of connections, and as a result, your listing may receive less exposure.
• Potentially lower profit: Agents are also skilled negotiators, which helps them bring in more lucrative deals for their clients. Without their expertise working for you, you might not fetch as high of a price as you could have.

FAQs

• Do I need a lawyer to sell my house in Kentucky?

  Yes, at least to some degree. Kentucky is one of several states that require a lawyer to handle residential real estate closings, so while you aren’t required to have legal representation every step of the way, you will need an attorney to close the deal.

• Do you have to pay taxes when you sell your house in Kentucky?

  All home sellers are subject to taxes, regardless of what state they’re located in. In Kentucky, sellers typically cover the state’s real estate transfer tax (though it’s possible to negotiate who pays for this). The rate is 50 cents for every $500 worth of property value, which would come out to $265 on a median-priced $265,000 home. You’ll also need to cover your property taxes up until closing day. And if you earn a substantial profit on the sale, you might owe federal capital gains taxes as well.