U.S. Home Prices on the Rise: What’s Next?

The Indianapolis Star reports that the average price of homes in the U.S. is steadily rising when compared to where they were a year ago. The most recent data, from May, shows a 12.2 percent jump from the 2012 averages.

For regular readers of this monthly newsletter, this is no surprise. There has been consistent good news on housing, like last month’s piece on home-sale agreements, or the 20 consecutive months of home sale improvements. In many places around the country, and even here in Central Indiana, it is starting to turn into a seller’s market — though buyers can still find fantastic deals and historically low interest rates.

After years of a down market, we are seeing signs of growth faster than we have in previous years. So what do you do next?

Well … it depends. If you’re looking to sell, now is a great time to list. There are still a few months left of the peak buying season, and if you move quickly, you can still show off your home with green grass and beautiful landscaping. If you’re looking to buy, rising interest rates should motivate you to contact me today and begin the buying process, which includes determining the kind of home you need and getting pre-approved for a mortgage.  I even have lenders that I can recommend to you.

Even though the peak buying and selling season is winding down, continued growth is showing that this year’s gains will continue into fall and winter. But who wants to look for homes in the snow when you can do so now in this beautiful weather? And if you wait until next Spring you will most certainly see higher interest rates.

Contact me today to get started.

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.

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!

Home Sellers: A Deck May Make the Difference

With spring in the air, the exterior of a home becomes even more important when putting your house on the market because buyers now will spend more time outside looking at your property and envisioning what their summer barbeques and family playtime will look like.


The addition of any amount of usable real estate to a property increases value. Customized decks and personalized outdoor living areas are a hot trend in home improvement upgrades, and a great-looking deck may entice more people to come see your home.

Building or updating an existing deck isn’t simply a great investment; it also provides opportunities to personalize your backyard and customize the look to your taste. And with many families staying home this summer to save money, why not think about creating the perfect location for entertaining?

Deck experts agree that multi-level decks are the most popular now. These are a series of decks connected by stairways or walkways, which are aesthetically pleasing and can be used for different purposes. One level can be used to catch the sun, one level can be positioned for shade and another can be set close to the house for entertaining and barbequing.

Wood decks have always been the most popular, but caring for them is tough. They will rot over time, are subject to insect infestation and require a great deal of maintenance to keep the wood from fading. Accordingly, people are embracing composite materials for their decks, which cost significantly more but will last longer with less maintenance.

For those homes that already have a deck, it’s important to make sure that it’s still in good shape and adds to the attractiveness of a property. You can change your deck’s appearance with interesting balusters to match other decorative accents on your house or in your yard and really add unique touches to make the deck a personal haven. Meanwhile, railings offer a good opportunity to pull in color and ornamental detail that complements the house.

By designing your deck with accents, lights and unique accessories, you can transform your backyard into an outdoor retreat one will never want to leave. Whether you’re catching up with friends over a grilled dinner in the evening or are curled up with a book in a lounge chair on a sunny afternoon, a deck is the perfect place to be.

‘Tis the Season for Tax Breaks

With April 15 rapidly approaching many are scrambling to complete their taxes. For those who have recently bought or sold a home, there are a number of tax deductions that that may be available to them.

Real estate broker’s commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs and may be used to reduce one’s taxable capital gain by the amount of the selling costs. That could result in a big savings depending on the final sale price.

Interest that is paid on a mortgage is also tax-deductible, within limits. A married couple filing jointly can deduct all their interest payments on a maximum of $1 million in mortgage debt secured by a first or second home.

Buyers may also be able to deduct some of the interest they paid on a home equity loan or similar line of credit.

One deduction that many buyers often overlook is points. Points or origination fees on a home loan that were paid during the purchase of a home are generally tax-deductible in full for the year in which they were paid.

Refinanced mortgage points are also deductible but only over the life of the loan – not all at once. Homeowners who refinance can immediately write off the balance of the old points and begin to amortize the new.

If your lender required private mortgage insurance, the PMI premiums are tax-deductible for mortgages taken out from 2007 through 2011.

Making improvements to property prior to the sale or once one moves in might qualify for an interest deduction on your home-improvement loan. Qualifying capital improvements are those that increase your home’s value, prolong its life, or adapt it to new uses, such as adding a porch or installing energy-efficient windows.

Many times during a sale, the seller will send the local tax collector’s office a check for real estate taxes prior to the closing. In many circumstances, however, the buyer will pay a pro-rated portion of the taxes for the year at closing. This tax deduction also gets overlooked.

For those working from their new home: If a room is used exclusively for business purposes, they may be able to deduct home costs related to that portion, such as a percentage of your insurance and repair costs, and depreciation.

In some instances, if you have moved because of a new job, moving costs may be deducted. These can include travel or transportation costs, expenses for lodging, and fees for storing your household goods.

Every year the tax laws change and certain tax deductions become available while others phase out. If you have recently bought or sold a home, it’s probably a good idea to seek out a professional tax consultant to do your taxes as missing deductions that you can legally claim can add up to quite a bit of money.

How To Make the Most Out of the $8000 Tax Credit

Three weeks ago, HUD Secretary Shaun Donovan announced a program that would allow borrowers to use the first-time homebuyer tax credit for a down payment or closing costs on an FHA insured mortgage at the NAR Mid-Year Conference. Forty-eight hours later that program was pulled due to insufficient details as to how to implement the program.

Last Friday, Secretary Donovan once again issued Mortgagee Letter 2009-15 detailing the guidelines of that program. Under the guidelines, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However, according to senior HUD officials, loans cannot be used to cover the minimum 3.5 percent requirement. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge-loan to significantly bring down the upfront costs of buying a home, but would still have to come up with the minimum 3.5 percent down-payment.

Secretary Donovan said “We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit.”

If you are a first-time home buyer and qualify for the tax credit this new program may be an option for you. Please keep in mind that you will need to have funds available for the 3.5 percent down-payment and you must close on the home by December 1, 2009. For more information about the tax credit visit my article titled First Time Home-Buyer Tax Credit FAQ's.

If you or anyone you know is interested in purchasing a home I would be happy to help you with your home search, no strings attached. Just contact me and I can have available homes that meet your criteria sent to your inbox, updated on a daily basis.

Downpayment-How Much?

Once you've found the home of your dreams, you'll be faced with financial decisions. Even though you have been pre-qualified, the amount of down payment will be your first consideration.
How much should you put down? And how does the amount affect your mortgage? Should you put down the least amount required, or as much as possible? The following are some tips and information you may find helpful in making the right decision for you.

Of course, you are always dependent on your specific financial situation. Very often first-time buyers are scraping together every available cent to make the minimum down payment. They may consider themselves fortunate to be able to do just that.

If you have more cash available, there are two ways to go. Some experts feel that you should make the smallest down payment that's acceptable to your lender. You will then have cash for emergencies, decorating, and any renovation that you want to do right away. You could also invest the extra funds. Weigh your options in dollars and cents. If you're trying to decide between putting 15 percent versus 20 percent down, and that difference is $5000, go with the 20 percent. You'll then save the cost of the PMI (Private Mortgage Insurance) which can really add up.

Generally, a 20% down payment is thought to be standard. If your home costs $100,000, you would be expected to come up with $20,000 in cash for the down payment, in addition to the closing costs. Many lenders believe that 20% down gives the homeowner a larger equity stake in the property, and thus decreases the likelihood of default.

Lenders today recognize that 20% of the purchase price is a great deal for most first-time buyers. As a result, different mortgage options have been developed to require a smaller down payment. For example, there are several mortgage options that will allow you to put down 10-15 percent. Conventional lenders will allow a smaller down payment if you agree to purchase private mortgage insurance. This insurance is paid monthly, along with your mortgage, until you have earned at least 20% equity in your property.

An FHA loan will require 3.5%-5% down. If you put down 3.5 percent, the FHA will accept a Community Development Block Grant, if one is available and you meet the guidelines, to make up the two percent difference.

A loan from the Veterans' Administration (VA) doesn't require any down payment. These loans are offered at a fixed rate that is set by the government, and the fees are low. These loans are available to honorably discharged veterans of the United States Armed Forces.

On the other hand, there is the argument that the more you put down, the less you pay back. The less the mortgage that you'll take and the less interest you'll end up paying. A greater down payment may eliminate the cost of private mortgage insurance. Talk to your lender, and run the numbers on a variety of scenarios. Then you can proceed in the manner that best serves you.

Copyright PropertySource Network 2009

First-Time Home Buyer Tax Credit FAQ'S

Congress Enacts Bigger and Better Home Buyer Tax Credit

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Who is eligible to claim the tax credit?

First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit?

The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

What is "modified adjusted gross income"?

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.

Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

I read that the tax credit is "refundable." What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).

I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.

Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

For further information click on this link:

http://www.federalhousingtaxcredit.com/2009/faq.php

Provided Courtesy of CENTURY 21 Realty Group

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.

Let's Make a Deal!

I met with a client yesterday afternoon to write an offer. This time it was a pre-foreclosure or short sale on a property. My client has been looking for a new home for some time and we have met and talked about the process of buying, the current market, and this neighborhood in particular on numerous occassions. At the time we met, she wasn't in the position to purchase but we knew that by having some time, we could seriously evaluate the neighborhood, look at market trends and find the best deal possible for her. Approaching retirement, this is intended to be her final home purchase and we wanted to make sure to do things right.

As we looked over paperwork, I realized that although we had talked numerous times about the buying process, this particular situation was one we hadn't discussed before. We were going to be working with the bank on this one. There was not going to be an emotional seller involved. No hurt feelings at what we were asking for and what concession we were hoping they would make. No other offers on the table that we were aware of, just a builder who was needing to unload a property. This was strictly a business decision on the part of the seller and although my client has bought several homes, this was unchartered territory for her.

As I explained more about the process of working with a bank I felt that I was having deja vu. I just went through that the week before with another buyer. Ahh!! Hello folks! This is the market we are in today.

Buying bank owned or foreclosed properties isn't difficult. It just takes a little perserverance and some education on the part of the buyer. Recently I have talked with agents who have been in the business of real estate for a number of years who have never made an offer on a bank owned property. The basics are the same, Realtors just have to make sure that they have educated their buyers how the process works.


THE BUYER'S AGENT
As for education of the real estate agent, I would say that it is imperative for the buyer's agent to talk to the listing agent about the property. The agent will not place the property as pending or activeB or such until after it closes and as the buyer's agent you may not know that they have 16 offers on it until you submit yours. Make sure that your agent has talked with the listing agent to get the low down on the property. Banks are usually willing to work with buyers and give some concessions. I would say it just depends on how badly they are wanting to unload the property. See what you or your agent can find out.


THE OFFER
As your buyer's agent, we will submit an offer similar to any other offer, keeping in mind that since the property is bank owned it is being offered in "As Is" condition. Meaning, the bank will not pay for any repairs that need to be made; they won't fix anything. Okay, but if we're getting a really good deal, we don't care. When the bank receives the offer they will look it over, see what it will net them and decide whether they want to take it or not. If they have a counter, they will contact the listing agent who will verbally counter back with me. Unlike the "real" world of real estate, banks won't mess with paper counter offers. Once we come to an agreement on the price, the bank will send back their version of the purchase agreement along with their several page bank addendum for the buyer to sign stating what they want in terms of closing, time for inspections, etc.


THE INSPECTION
We always reserve the right to have the property inspected...and I can't stress enough how imprortant it is. Just to warn you, this can be a pricy endevor depending on the size of the house. Inspections themselves aren't that expensive and are well worth the money spent but if the home has been winterized, it is imperative that a de-winterization and rewinterization be done. Most bank owned homes are going to have the utilities turned off. Rarely are they disconnected, ususally they are just turned off. The utilities will be have to be restored before the inspection can take place, but IT IS IMPERATIVE THAT NOTHING IS TURNED ON TO THE HOME EXCEPT BY THE INDIVIDUAL DOING THE DE-WINTERIZATION!! Your worst nightmare would be for the water company to come out and turn on the water just to have that water come barrelling out of open faucets in the house with no one there to stop it!!!

Costs for the winterization process is determined by the number of baths in the house, so those of you buying those homes with 4.5+ baths will pay for it! When you contact the inspection company, let them know that you need to de-winterize and re-winterize the property. Most companies provide that service. If they don't, find someone who will.
Unless the inspection shows a major defect with the property, we are good to go. Now we know what does and doesn't need to be fixed and we know where we stand with the condition of the home.

I always caution my buyers to make sure to schedule the home inspection early in the process. This will allow time for us to make sure that all inspections can be done in the alloted timeframe without having to ask for an extension. If the inspection takes place at a time when the roof can not be safely inspected due to snow or rain, then the inspection company will come back out to complete the inspection at a later date if asked. I have also had cases where although the home was winterized, there were none operating faucets in the home and the inspector returned to verify that there were no leaks or broken pipes in the home. I also caution buyers not to wait until we receive the bank signed documents back to schedule the inspection. Sometimes that can take a few days, especially if we are dealing with the weekend. If they only have a week to get the inspection, it needs to be scheduled immediately after we know that we have a deal with the bank.


THE CLOSING DATE
One derivation that I do make for bank owned properties is that I normally set the closing date about 45 days out rather than the normal 30 days. Banks often will charge a per diem if the closing does not take place on the scheduled date and I want to make sure to allow ample time for the mortgage process so that we don't get caught having to pay extra fees. We can move the closing up without penalty, just not set it back.


THE PROCESS TO CLOSING
The rest of the process to closing is very much the same for a bank owned purchase as it is for a nornal purchase. As your buyer's agent I will make contact with you to see that the process is going smoothly and to check to see if you have any questions. Once everything is ready for closing, your lender or I will contact you with the amount of funds needed at closing and then we go have fun signing on the dotted line.

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.