Rising Mortgage Interest Rates Signal Time to Act

Central Indiana residents looking to buy a home this summer will be watching mortgage interest rates start to climb. Though rates remain at historically low levels, the national averages for interest rates are on the move.

According to bankrate.com, the benchmark 30-year fixed-rate mortgage was around 4.48 percent earlier this month. This is compared to around a 3.87 percent rate last year at this time.

Overall, the rise of interest rates signals a stabilizing economy that will need less caretaking from economic industries. This is good news, but for people looking to buy a home in the next few months, it could be a signal to act.

According to some experts, the steady growth in mortgage interest rates will keep moving along. This does not mean you have missed the opportunity to buy a new home, as rates are still remarkably low and home prices in Central Indiana are still affordable.

What these rising rates means, however, is that potential homebuyers should think about searching for their new home and listing their current property soon, as there could be an increase in home-buying activity as people try to lock in low rates.

Of course, every situation is different, and you should never rush into selling or buying a home. But for those residents who are interested in learning more or beginning the process, contact me today and learn what deals you can find, and get up-to-date information on mortgage rates and trends.

Potential Home Buyers: How Much Can You Afford To Spend?

 Having a finger on the pulse of how much your household brings in each month and also how much money flows out in that time period will be what helps you to understand which price range you should be shopping within.

One helpful tool that can get you on the right track is the Homebuying Calculator from MSN Money. By filling out the fields required on this calculator as accurately as possible, you’ll be given a solid estimate of how much money you can put toward a house.

One area that remains hazy on this calculator, however, is the “Other monthly obligations” item. Here’s a sample of what these items might include:

• Student loan payments
• Healthcare/gym costs
• Monthly utility bills
• Your household’s entertainment and recreation budget
• Food budget
• Clothing budget
• Savings budget
• Transportation budget

In addition, first-time homeowners must realize that it costs a lot to get a home up and running. Items you may want or need to invest in include:

• Furniture
• Large appliances — washer, dishwasher, refrigerator, etc.
• Furnishings and home accessories — lighting, dishes and cookware, window dressings, rugs, etc.
• Outdoor items — lawn mower, ladder, outdoor furniture, etc.

Tally up the amount allotted to all these items — as well as any other areas where you have payment commitments — to get the best estimate possible for your home-buying budget.

Once you’ve squared away how much you can afford and are ready to begin shopping for a home, contact me to get the ball rolling on your home search!

Home Sale Agreements are Still Rising

For people into numbers, there are plenty of good stats coming out about Central Indiana’s real estate market. For people who aren’t into math, the key takeaway is that the nine-county Indianapolis-area real estate market is selling more homes than it has in years.

The Indianapolis Business Journal reports that year-to-date home sales are nearly 20 percent ahead of the 2012 pace, and the average sale price is more than 5 percent up from last year — through June the average sale price was $161k. Even high-end real estate is increasing, as seven $1 million homes were sold in June.

June saw 2,637 purchase agreements on existing homes. Marion County agreements are up 5.5 percent from last year, while Hamilton County saw an 8.3 percent jump.  If you are interested in more detailed information about home sales in your neighborhood, please let me know.

An active market is a healthy market, so if you’re looking to buy a home, now is a good time to start.

Let me know if you’re ready to buy or sell a home in the Indianapolis area, and we will work diligently to put you in the home of your dreams.

How Do Some People Sleep At Night?

From time to time we hear of local real estate scams going cropping up. Most of the time they are of the nature of something to do with repairs to homes, especially when summer storms roll through.  More often than not, the victims are unassuming elderly individuals who have been convinced that the services are needed. When I hear of such reports I wonder how these individuals can sleep at night? 

The following alert was sent out by the office of Attorney General Greg Zoeller.  Apparently there have been numerous complaints regarding this.  While this "service" is not illegal it is highly unethical.  

If you ever have questions regarding anything to do with property you own please feel free to contact me.  I am your trusted resource for all matters Real Estate!

"Watch out for mailings offering copies of deeds"

News reports and consumer calls confirm that the “Property Deed Scam” is still hitting

home with Hoosiers.  The mailing is often from a private company, with a government-

like name, offering certified copies of your land deed for an excessive fee – up to $87.

Property deeds are public records and your county recorder can provide you a copy for free or at a nominal cost, often times a $1 per page.  Attorney General Greg Zoeller said that while the property deed service is not necessarily illegal, the solicitation can often mislead consumers into believing they need a copy. Homeowners are not required to have copies even when they sell a property.

Zoeller asks consumers to disregard the mailings and help warn family and friends –

especially senior citizens. If you have any doubts about a mailing offering a government-provided service, contact the entity directly to confirm the solicitation’s

legitimacy. If you have paid for this service, but did not receive your deed copy you can

file a complaint with the Attorney General’s Office by visiting www.IndianaConsumer.com or requesting a complaint form be mailed to you by calling

1.800.382.5516.

We have experienced another sign that the market is continuing in recovery mode....the May slow-down!  At least it feels that there is a slow down. While the sales in Carmel remain brisk, we are seeing a tendency toward normal in the market.

In Indiana we have a seasonal selling time for real estate.  The market tends to pick up around the end of February and continues to build steam until June where it is hot and heavy through the month of August when we see a slowing of sales.  This is the time when most families are wanting to make their move and generally speaking, most everyone would rather move during the warmer months that tackle a move during the snow storms or bitter cold of the Indiana winter.  Once the kids get back in school we see continue to see moderate sales as those last few buyers find their new home so they can get settled before the cold sets in.  

However, one caveat to that is the month of May.  Historically, the month of May, for whatever reason...be it graduations, Mother's Day, the end of school...tends to be a slower month for sales.  At least that was the old norm.  Going forward, we'll just have to see if this holds true but I personally want to say this is a sign that we are getting some serious recovery!  And that is great news!

Eleven Reasons to Use a Real Estate Sales Professional When Buying a Brand-New Home

Existing and potential homeowners are looking at real estate from all angles as the U.S. economy and local housing markets continue their recovery. For many, there is strong appeal in buying brand-new homes as myriad builder incentives and low interest rates create significant value.

Today’s new homes boast exciting floor plans and designs tailored for specific lifestyles, complete with a huge array of features and appointments. They include energy efficient products and building techniques, reducing buyers’ utility bills. Of course, new-home consumers love that their properties, from roofs to appliances, will not need replacement for many years.

It might not seem necessary to involve a real estate professional in a transaction where a buyer can deal directly with a builder. Yet by using a real estate professional you gain a skilled professional to protect your interests and guide you along the right path.

Here are 11 advantages to using a real estate professional when buying a newly constructed home.

1. Just as a real estate professional calls on experience and knowledge of an area to help buyers locate pre-owned homes in a community, he or she can also direct buyers interested in newly built homes to developments and communities that match client specifications.

2. A sales professional can suggest builders with reputations for delivering a high-quality product, responding quickly to issues, and being financially sound.

3. A sales professional may be familiar with how a builder prices his products and where there may be room to negotiate price or upgrades.

4. Without representation, you are one buyer purchasing only one home. But a sales professional can significantly impact a builder’s bottom line by providing a steady supply of customers. This leverage may work in your favor at the negotiating table. [Note: The builder may require your sales professional to accompany you on your first visit to the site. Check with the builder.]

5. The lender approval process may go smoother if a sales professional schedules visits, accompanies you to lenders, and helps expedite required documents.

6. What may seem like a simple transaction can grow legally complex and risky. A sales professional is familiar with those complexities and risks inherent in the homebuying process. When such questions arise, we can steer you to the right advisors and services you may require.

7. If your contract includes a contingency to sell an existing home your real estate sales professional assuredly can help, though your sales professional will explain that buying before selling isn’t always in your best interest as it can undermine your bargaining.

8. When relocating to a new area, sales professionals can be particularly valuable resources. In addition to providing local area information regarding schools, day care or elder care services, public transportation, proposed development, and so on, once construction is under way, they can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction.

9. A sales professional can assist you as you face hundreds of design choices and consider which upgrades could potentially add value to the home when it comes time to sell.

10. A sales professional can accompany you at the site while you okay the plumbing and electrical locations prior to dry walling, as well as on the walk-through or builder orientation.

11. Lastly, most often the builder pays the sales professional’s commission. You enjoy individual attention and support at no cost to you.

Builder incentives and heightened affordability have many real estate consumers considering brand-new homes. Rather than rely on builders’ agents – who are paid by the builders – savvy shoppers are hiring real estate sales professionals to help them through the buying process and on to the American dream.

Floor the Competition

When people enter your home they usually look down before up, so that first step is vital for attracting a homebuyer and making a great first impression. This is one reason why more people are installing hardwood floors in their homes.

Hardwood flooring enhances the look of any room and can create a classic ambiance that will beautify the interior design of your home. Residential real estate agents agree that homes with wood floors hold their value better, sell faster and fetch higher prices.

Last year, 99 percent of real estate agents responding to a national survey conducted by the National Wood Flooring Association agreed that homes with hardwood floors are easier to sell. The survey also found that 82 percent believe that homes with hardwood floors sell faster and 90 percent said they would sell for more money.

The American Hardwood Information Center adds that restoring hardwood flooring in the home is one of the best long-term investments to be made.

“Hardwood floors are environmentally friendly, forever fashionable, and will last for generations,” said Pembroke Jacobs, president of the Hardwood Manufacturers Association. “Plus, with an expected life span of up to 100 years for certain premium hardwood flooring, you can be assured that that the hardwood really is a one-time investment with a very long-term payoff.”

Real estate agents also agree that carpeting does not impress potential buyers, but hardwood floors are always a draw. Engineered wood floors impart warmth, depth and richness to a home’s decor that cannot be matched by carpeting, tile or vinyl flooring. Despite the existence of modern architectural trends in flooring, hardwood can still compete with floor tiles and other artificial materials. It comes in a variety of colors and grains; light, medium, or dark shades; and a variety of sizes, styles, finishes and species.

Maple, mahogany and oak are the most popular woods, but some homeowners are investing in exotics such as Brazilian cherry and purpleheart.

The Environmental Protection Agency has said that indoor air quality is one of the top health threats and wood floors can help contribute to a healthy living environment. In fact, a recent EPA study found that pesticides used in gardens and homes accumulate on floors and other surfaces in the home, but that wood floors greatly reduce the accumulation of such toxins. Hardwood floors also do not trap or harbor dust mites or molds.

Though wood floors will probably need to be refinished at some point, when properly taken care of they are much easier to maintain than other floor surfaces.
The NWFA recommends regular sweeping of hardwood floors with a soft-bristle broom or dust mop to remove surface dirt and debris. If your floor contains beveled edges, it recommends using a vacuum with a soft bristle brush attachment to remove dirt and debris from between the floorboards.

Having hardwood floors could be the difference between selling your home or watching a potential buyer walk out the door on a less-appealing type of flooring.

Homebuyer Tax Credit Changes FAQ's

Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit:

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.

Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.

Please feel free to contact me if you have any additional questions about the tax credit changes.

(Information provided by NAR)

The First Step in Buying a Home-YOUR CREDIT REPORT!

All too often I am approached by a prospective home buyer who asks to look at a home they have fallen in love with only to have them end up in the situation where they can't get the home. The culprit....the dreaded credit report!!

The first step that a buyer should take when beginning the search for a home, before they talk to a Realtor, before they talk to a lender, even before they think of pulling up CENTURY21.com or Realtor.com, they should pull up their credit report. Consumers have the ability to pull up a free credit report online through sites such as FreeCreditReport.com and should do just that.

I recently read that over 70% of consumers reported that they have found errors in their credit report, with 25% of them being serious enough to either deny the consumer credit or significantly delay the process. With over 54 billion credit updates annually, it is very likely that you may have an error on your credit that you are not aware of. Many times these errors are negatively impacting your credit in such a manner as to deny your ability to get credit or to cause you to pay excessive interest expenses.

All consumers should routinely pull their credit reports to look for errors and have them correctly immediately. They need to be proactive in protecting their credit and become educated and understand how credit works. When a questionable activity is identified, it needs to be correctly immediately. Usually the first step in doing so is to notify the applicable credit reporting bureau.

If you are wanting to buy a home, do this and then call me to help you find that perfect home. If you have questions regarding your credit, contact me and I will help you answer them.

NEWEST REALTY GROUP TOOLS TO BETTER SERVE OUR CUSTOMERS!!

CENTURY 21 Realty Group has just unveiled some new and exciting tools designed to better serve their customers with their home search in the 21st Century regardless of whether they are going mobile or Internet surfing. This is way cool stuff that no other realty company in the state has.

We now have provided for us one of the best and most up to date online sites in which to host properties for sales. Each of our listings has a unique website dedicated to it which not only includes the visual tour but also gives links to tons of information about the area, schools, what is close, community demographics, great mapping tools and more. When driving by a property Buyers can get more information about the property instantly on their cell phone via a simple text code. If viewing online, they can download a flyer which has all the information about the property. To see epropertysites in action check out my featured property.

Do you ever drive by a home for sale and wish you could get more information about the home without calling your agent? Then I have the tool for you. CENTURY 21's Going Mobile will allow you to download an app to your smart phone that will allow you do just that. Using GPS capabilities it will pinpoint the area where you are and pull up all the listings in that area. And the best thing??? CENTURY 21 Realty Group it pulls from 10 MLS boards and covers most of the Central Indiana/Kentucky area. So if you are looking for a home, or just curious, contact me and I will set you up.

To Buy or Not to Buy?

Yesterday I stood freezing my toes off with a client looking at three different condos trying to decide if this is the right time for her to buy. The conditions are right. My client is wanting to buy, she doesn't have a house to sell, has good credit and has a sizable downpayment. If you know anything about the market you're probably screaming, "OF COURSE IT IS, WHAT ARE YOU WAITING FOR!!" So, what's the issue here?

The area that she is wanting to buy in is with a builder that is ceasing operations in Indiana. My client is concerned about what will happen with the neighborhood and since it is a condo community, who will be receiving the monthly maintenance fees, take care of the property management, handle any necessary repairs, etc. Even though those are very valid concerns I told her not to worry. My client is very fortunate in that the community she is buying in is a finished community. All of the lots have been sold, the homes built and the community has been turned over to the Homeowners' Association who has hired a property management firm to handle the day to day operations of the association. I assured my client that she probably wouldn't notice any difference in her specific community in the ways things are being handled now that the builder is no longer in operation than if that builder was still actively building in the area.

So, is my client going to buy? I'm not sure. My advice to her is that the property is a very good deal. We might be able to find her another similar condo but the price could be substantially more than what she would pay today to purchase this one. Probably this is a deal that might be too good to be true, but all Realtors know that we don't have a crystal ball to tell us what will happen with the market.

Welcome To the New Year!!

Okay, sure it's the 14th and the new year is well underway, but this is my first post of the new year. So, Welcome!!

As I sit and watch the snow pile up out my office window I have reflected on the current condition of the real estate market. We hear a lot of negatives through the media and around the office cooler. Yes, times are trying. But when things get trying, opportunity presents itself. Opportunities for a lot of things to happen. Opportunities to grow. Opportunities to get better. It doesn't matter what the circumstance is, when we get pushed outside of our comfort zone things can happen. It's just up to you to determine what the outcome will look like for you.

12 FREE DAYS OF INDY CHRISTMAS

Looking for FREE things to do to celebrate the season in Indianapolis? The following is a list of free activities in and around Indianapolis this Holiday Season. These Indianapolis area attractions have come together to give you the gift of FREE ADMISSION to their attractions on the date scheduled.

Day 1; Sat, Dec 13-Indianapolis Motor Speedway
Day 2; Sun, Dec 14-President Benjamin Harrison Home
Day 3; Mon, Dec 15- Indy Wine Trail
Day 4; Tues, Dec 16-Indianapolis Arts Garden and James Whitcomb Riley Museum Home
Day 5; Wed, Dec 17-Morris-Butler House
Day 6; Thu, Dec 18- Indianapolis Museum of Art and Lilly House
Day 7; Fri, Dec 19- Indiana Historical Society
Day 8: Sat, Dec 20-Indiana Medical History Museum
Day 9; Sun, Dec 21-Eiteljorg Museum of American Indians & Western Art
Day 10; Mon, Dec 22- Indiana State Museum
Day 11; Tues, Dec 23-Free dessert at participating downtown restaurants
Day 12; Wed, Dec 24-Children's Museum of Indianapolis

OTHER INDIANAPOLIS HOLIDAY CELEBRATIONS:

A Christmas Carol
Indiana Repertory Theater
Now to 12/28/08
http://www.irtlive.com/

Christmas at Lilly House
Indianapolis Museum of Art
Now to 1/11/09
http://www.imamuseum.org/

Winter Solstice
Indianapolis Museum of Art
12/18/08, 5:30-9 pm
http://www.imamuseum.org/

Duke Energy Yuletide Celebration
Indianapolis Symphonic Orchestra
Hilbert Circle Theater
Now to 12/23/08
http://www.indianapolissymphony.org/

Gingerbread Village
Conner Prairie
Now to 12/30/08
http://www.connerprairie.org/

Jolly Day Winter Wonderland
The Children's Museum
Now to 1/4/09
http://www.childrensmuseum.org/

Marsh Christmas at the Zoo
Indianapolis Zoo
Now to 12/27/08
http://www.indyzoo.com/

Santa's Holiday Breakfast
Indiana State Museum
Saturdays now to 12/27/08
7:30-9am, reservations required
www.in.gov/ism

The Polar Express: an IMAX 3D Experience
IMAX Theater
Now to 1/4/09
www.imax.com/indy

This information was provided to this agent compliments of Chicago Title.

2008 WAS A BIG YEAR FOR HUNTWICK!

Having sold two homes in the neighborhood in the past year I understand the value of the homes in the neighborhood. Currently there are 5 homes for sale, one of which is a HUD home. List prices of the homes range from a high of $134,900 to $113,000 with a median price of $120,000. This puts the average price list price per square foot at $79.65.

Sales for 2008 were brisk with 12 units sold in the neighborhood compared to 8 the previous year. The average sales price for 2008 was $115,833 compared to $106,300 in 2007 with the average Days on Market of 80 for 2008 versus 133 for 2007. The average sales price per square foot did decline somewhat in 2008 from $81.19 to $74.85 but fares much better than the average for the Indianapolis metro area of 20%.

If you are interested in more detailed data for Huntwick or are interested in data for your neighborhood, please contact me. I'll be happy to provide it for you.

What's Happening in West Wood?

Wondering what the housing market is like in West Wood? As of December 15 there are 13 active listings with sales prices ranging from $111,500 to $170,000. The average list price per square foot is $78.29 with the average days on market of 172 days.

To date, 14 properties have sold this year ranging from $80,500 to $160,000 with an average sales price per square foot of $64.40. Those figures compare to a range of $68,000 to $163,000 for 2007 with average SP/SqFt of $68.84, with 15 units sold.

There has been some discussion in the neighborhood about the number of foreclosed properties in the neighborhood. While it is somewhat difficult to pin down that information, some of it can be gathered from readily available real estate data. Six of the 14 homes sold in 2008 were bank or corporate owned homes which compares to six of the 15 homes sold in 2007. One of the homes sold in 2008 was a property that was agent purchased in 2007 and resold in 2008 as a rehabbed or "flipped home" in a sense reducing the number of foreclosed homes sold in 2008 to 5.

If you wish to have more indepth data or would like to receive current information about new listing in your neighborhood, please let me know. I would be more than happy to provide that information for you.

Welcome to my blog!

Join me as I begin this new adventure into the world of blogging. I'm not sure why it has taken me so long to take this step because I love technology. I love to use the computer, love my iPhone, love my iPod, loved leading computer training sessions and am linked in continuously, I never have taken the time to explore this method of communicating with the world.



Join me as I explore this realm and enjoy sharing my thoughts and insights with you, my readers, as it relates to the world of Real Estate, the economy and the world in general. Thanks for stopping by and I hope you both enjoy my posts and pick up some information along the way.