Steve & Jack's March Home News

We are one month closer to spring!!! Apparently, the real estate market has gotten wind of this and has started 2018 with a BANG! We hope you are staying well, which this year, it seems is more of a challenge than ever!

Thank you to all of our friends, clients, and referral partners for attending our monthly Happy Hour last night at Matt The Miller's. We had a great time and always enjoy seeing you. Please join us for our next Happy Hour on March 21st from 5-6:30PM. We are looking for some sponsors this year as well, so if you are looking to get some additional exposure for your business at a very low cost, please let us know. We are filling spots now.

Our biggest and most exciting news is that we have an addition to our family! We are proud to announce that Julia Hayes has joined our team as a buyer/seller specialist. Julia has helped us several times when we have been out of town and has worked in our office for some time. She worked previously for a builder, so she is acutely aware of the building process and will be a great asset to our clients. Julia grew up in Carmel and swam for their record-setting State Championship Girls Swim Team and then also was a scholarship swimmer for IUPUI. Julia brings so much talent to our team and we are excited to have her helping us deliver an even higher level of service to our clients. Julia lives in Fishers and has two children. Please welcome Julia as you connect with her. Her e-mail is Julia@Welcome2Indy.com.

Kylie is simply amazing and keeps our team running so smoothly. She is the most organized person I know and our clients love how she keeps things on track. She is doing well and so are both of her boys, who keep her busy while not at work.

Jack and Mary Anne are doing great and we are so proud to announce that Mary Anne's knee replacement surgery was a complete success! She is recovering well and has exceeded all of her PT goals. She is walking around pain-free, but still has more work to do on healing before she is back to 100%. She would appreciate any continued thoughts and prayers.

Steve & Brigid are keeping busy, as usual. Brigid is very busy with work, not only doing pharmaceutical sales, but also is her region data analyst for her regional manager, which takes her out of town more often and adds quite a bit to her workload. She enjoys it and the opportunities it is providing. Ana and Tali are both doing great in school. Ana is enjoying singing in the Indianapolis Children's Choir and preparing for their next concert in March. She is also preparing for her 3-week European Tour this summer and has to learn 17-songs on which she is diligently working! Tali has continued to excel in gymnastics with several first-place finishes and is looking forward to going to her first out-of-town meet next weekend. We are all looking forward to a short vacation to Disney leaving today. A little sun and fun will go a long way!

The market is white hot right now with inventory at an all-time low. If you or someone you care about are thinking about moving, please call us. There is a lot of information we can share to educate you about your options, so you make the best decision possible. Check out the January stats from MIBOR comparing January 2018 to January 2017:

New Listings-2,483 units-DOWN 3.8%
Pending Sales-2,216 units-UP 3.1%
Closed Sales-1,901 units-UP 5.3%
Median Sales Price-$158,000-UP 10%
Average Sales Price-$192,732-UP 5.6%
Percent of Original List Price Received at Sale-94.7%-UP 1.3%
Total Active Listings Available at Month End-7,070 units-DOWN 18.4%!!!
Months Supply of Inventory/Absorption Rate-2.3 months-DOWN 20.7%!!!

Look at those last two lines above. Those are HUGE declines in inventory. We need more! Now is the time to sell before interest rates continue to go up. They have increased 50-basis points since January to 4.687%, the fastest increase since January 2006.

Thank you to all of our clients for your reviews on Angie's List!!! We have once again been honored for the 3rd consecutive year as a Super Service Award winner. We have also been honored for the 5th consecutive year as a 5-Star Real Estate Agent. Those are both the Top 5% of agents in the city. Thank you for your reviews and your trust and confidence in us. We will continue to work hard to earn it! Be on the lookout for a new referral-reward program for some cool new prizes!! So, send in those referrals. :-)

Do you like to golf? We are Corporate Partners with Heritage Place, which is a not-for-profit organization that services seniors through education and activities. We have been on the planning committee for the golf outing for 3-years now and sponsor a hole as well. We need more golfers! It is at Broadmoor Country Club on Thursday, June 28th and the fun begins at 9:30AM. It is a scramble, so more fun than serious. This is a private course, so if you have wanted to play, now is the time. Please contact me if you would like more information.

Please enjoy this month's newsletter and check out our next Builder Video Series video. Good info!

Click here to read our March Newsletter

Click here to watch our Builder Series Video

Click here to download the most powerful real estate app available

Click here to access coupons and discounts at places you shop every day

Your Friends in Real Estate,

Steve, Jack, Kylie, & Julia

Top Ten Things to Know BEFORE You Build

There has been a lot of press lately about the extremely low inventory of housing across the country, but especially in & around Indy. We are at an all-time low of 3.9 months of inventory and, in some markets are as low as 1.3 months! 6-months is deemed to be a balanced market. As a result, many people are seriously considering building a new home. If you or someone you care about is considering building, here are some things to keep in mind before you first step into a model.

1. Have a clear understanding of how long the builder will take to complete the neighborhood…and then add 1-2 years to be safe. New neighborhoods are nice, but do have lots of construction equipment, noise, & traffic as a result. There will be very few, if any mature trees unless they were saved during initial development & vegetation will take time to mature.

2. Take time to research available lots & choose the best one available. Many people will try and save money on the lot premium, but spend it on upgraded spindles, trim, deck, appliances, etc. Your lot is the one thing you cannot ever change. Pay the premium for the best lot (cul-de-sac, lake, tree-line, nature persevere, etc.) and upgrade other features later, if you need to.

3. Be willing to take time to choose your structural & design center options carefully & stay involved in the building process. Building a new home takes much more time than existing, however you can get exactly what you want. From contract signing to final home delivery, it can take 6-12 months, depending on whether you are building production or custom. Be patient. Be willing to stick with the builder and visit your house during construction at least once/week. Visit the design center several times before making a final decision to ensure you are happy with your choices. Maintain an open communication channel with your builder and ensure you are receiving updates at least 1x/week.

4. New homes are closer to ‘perfect’ than existing, but there is no such thing as a ‘perfect home’. Most likely, your budget will not allow you to get everything you want. Know that is okay and very common. Choose wisely on your options. Know that your builder wants to exceed your expectations, but they are human and mistakes will occur. Good communication will go a long way-so will the occasional snacks & drinks brought to the job site! :-)

5. Pay for a 3-phase new construction independent inspection. Many people make the mistake of not hiring their own inspector who is familiar with the building process to ensure high quality. Builders have a quality control process & the municipalities have mandatory code inspections, but neither are a replacement for having your own independent inspection. Budget $800-$1,000 & make sure your builder knows of your intention to have one so he/she can make accommodations for your inspector.

6. Understand the structural & home warranties. Most builders purchase a 3rd party, 10-year structural home warranty for their clients. This is for structural issues only & the deductible can be $500 or more depending on the type of claim. Builders are required by law to provide a 1-year ‘bumper to bumper’ warranty on their homes, but some provide 2-year warranties. This includes anything mechanical as well as drywall cracks & nail pops. Ensure you schedule a 1-year walk-thru prior to expiration of your warranty to have your builder address any concerns & keep a list of those as they occur throughout the year so you don’t forget any. Many components of your house have their own warranties that last longer, such as furnace, roof, windows, water heater, appliances, etc.

7. Know the HERS (Home Energy Rating System) score. Every year, new technology & building practices improve & homes are more & more energy efficient. You can literally save hundreds of dollars each month in energy costs with a new home versus an older one. When deciding on new or existing, factor this into your budget as it can have a significant impact on your monthly expenses.

8. Take time to research floor plans you like & don’t like & visit builder models. Builder models are a treasure-trove of information. Take time to walk through several and note what you like and don’t like. New homes are designed & built to the needs of today’s consumer (think open floor plans, hearth rooms, outdoor living, etc.) and flow much better than many older homes. If you buy an older home, will you have to make any significant improvements out-of-pocket that you could get included by building new?

9. HGTV is not real! HGTV is great to watch and you can get a lot of good ideas, but it is sensationalized and fictionalized. You only see what the producer wants you to see. There is far more to the story that what you see. Please don’t set your expectations according to what you see on TV.

10. Professional representation does not cost you more. Having an experienced agent who is well-versed in building is a huge asset. They can help guide you through all of the above & assist in making wise decisions as well as take a lot of pressure & stress off your shoulders. Contrary to popular belief, builders do NOT charge less if a real estate agent is not involved. In fact, in many cases, agents can help you get a better deal than not having one involved. Real estate agents are involved in new home builds between 75-92% of the time, depending on the builder. Our fees come out of their marketing budget & have nothing to do with the price you pay for your new home. The best time to involve a real estate agent is at the very beginning of the process before you set foot in your first model home. Builders are very happy to work with experienced agents, but they need to know you are working with an agent at the very beginning of the process & it is best if they accompany you to the model for the first time. All builders have registration forms they will ask you to complete. Make sure you write the name of your agent on this form and your relationship with your agent will be protected. We have built our own homes as well as almost 100 production & custom homes for our clients over the years and have earned the Certified New Home Specialist designation (along with 10 other certifications & designations) held by the top 3% of agents specializing in new construction. We have saved our clients tens of thousands of dollars & countless headaches.

If you or someone you care about are even considering building, give us a call today so we can sit down and consult with you about your options and help you make a truly informed decision, including which area/neighborhood is best for you, which builder is the best fit, lot choices, upgrades/options, & an overview of the entire building process from beginning to end. We specialize in selling homes that are contingent on selling before your new home is built. This is one of the biggest concerns people have when deciding to build. Let us walk you through some solutions and see which one best fits your needs.

We are honored to have earned the Angie’s List Super Service Award for 2015 & are a 5-time recipient of the 5-Star Real Estate Agent award, both recognizing exceptional commitment to client service. Finally, come join us at an upcoming Happy Hour! They take place the 3rd Wednesday of each month from 5-6:30PM at Matt The Miller’s in Carmel. Food & drinks are on us!!

Call us today to schedule your private, no-obligation new construction consultation!

Your Personal Real Estate Consultants…for Life!
Steve & Jack Rupp
Keller Williams Realty
www.Welcome2Indy.com
317-573-1880
Steve@Welcome2Indy.com

Negotiating with Builders

OK, we have all heard that builders are hurting right now and that isn't far from the truth. Some are hurting more than others, to be sure. What are your options if you are looking to build a new home or are considering buying a "spec" home (one that is already built or is about finished)? First of all, enlist the help of a knowledgeable real estate agent who is familiar with the building process and builders in the area. There are many nuances with each builder and knowing these could save you (or cost you) a lot of money.

First of all, find out whent the fiscal year of the builder ends, or when their sales quarter ends. They will be under more pressure to sell a home at these times than any other. Enlisting the help of an agent will show the builder you are serious and won't cost you any more. The commission the agent makes comes out of the builer's marketing budget and has nothing to do with the price of the home you are purchasing. You will NOT be able to save more money by bypassing the real estate agent.

Be willing to close quickly. Time is money for builders. A quick close is extremely important to builders. Equally important to builders is buyers NOT making the purchase of their next home contingent upon the sale of their existing home. If you can swing these items you are ahead already.

Most builders will pay your closing costs, but ONLY if you use their lender and title company. Be prepared for some road bumps by using their lender, however this can save you several thousands of dollars.

Next, no matter what the sales rep says, make an offer lower than the price of the home. They will have to take it to the VP of Sales, but he/she will take a look at their bottom-line and tell you whether or not they can accept your terms.

The worst that can happen is they will say no, but this is what we can do. Either way, you are ahead.

Check out our website at www.Welcome2Indy.com for other resources or contact me with any questions. Gook luck!!