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!

Q1 Data Is In...

...or possibly out!  MIBOR released Q1-2013 data this week and just as we thought things are hopping like we haven't seen since 2008!  The quick facts for the entire area for March show an increase of 23.4% quarter-over-quarter in number of closed sales and a 2.1% increase in median sales price.  Home inventory is down 15.8% over Q1-2012.

More specifically, Hamilton County you are seeing a 27.5% increase in sales with a decrease of 8.6% in new listings for the month of March.  Can anyone say low inventory??  Average sales price through the quarter has remained steady with a 1.1% increase over 2012.

The big news for Marion County is an increase in sales price of more than 7% with a 10.6% increase in sales and a 5.3% decrease in new listings.  Keep in mind, this is Marion County as a whole and as any buyer looking in Meridian-Kessler, Buter-Tarkington or the Broad Ripple area can attest, homes are flying off the shelf!  If you have something to list in that area, you need to get it on the market while the market is still in overdrive.

Hendricks County is not quite as hot but still recovering nicely with sales up 21.2% in March.  New listings are down 15.8% but we are seeing a nice rebound in pricing with a 5.5% increase in median sales price.  Hendricks County homeowners, now may be the prime time to get that home on the market.  With interest rates in the 3's and 4's,  and home prices going up, there could never been a better time to jump in the market.

Looking for more specific data?  Just contact me and I will be happy to set you up.

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.

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.

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.

Why Pricing Is So Important

Trying to value a home to sell in any market is confusing for most sellers. In this market it is even more crucial. A colleague of mine, Greg Cooper, tells us why pricing is so important.

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.

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.