End in Sight for Housing Slump?

While no one has a crystal ball, there are many indications that the housing slump MAY be nearing its useful life. I have seen showings pick up on listings. I've had several buyers write acceptable contracts on homes. Inventory of houses is going down and so are days on market. John Tucillo a nationally-recognized authority in the real estate market and former National Association of REALTORS chief economist in a speaking engagement for the Indiana Association of REALTORS last Wednesday said that he thought that by the end of this year, Indianapolis should be coming out of the housing slump along with much of the rest of the country. That is great news for homeowners, buyers, and real estate agents.

Along with this prediction, as well as lowering interest rates and the national election, we should have a fairly busy winter. Oddly enough, every time there is a presidential election, the housing market slows considerably in the weeks leading up to it, but then picks up right after the winner is announced. This could end up being a decent 4th quarter.

Visit www.Welcome2Indy.com for some great resources in the housing market.

Where Are The Buyers?

This is a question I am hearing a lot lately. Sellers are wondering where the buyer traffic is and why they aren't getting many showings. Real estate offices around the city are significantly slower than usual at this time of the year. Agents who work with buyers just aren't seeing many of them.

I ask, "Where are you, buyers?" Interest rates are around 6.5% for a 30-year fixed-rate mortgage. Historically, that is an excellent rate as the 40-year average is over 8.0%. If you are a first-time buyer, NOW is the time to buy. The market is not going to get much better than it is currently. It can't. Jump in with both feet and take advantage of this outstanding buyer's market before it is too late.

If you have a house to sell and are upgrading, more than likely you will get a better deal than you will have to give, further making sense to jump into the market. The real estate market isn't for everyone right now, but with good, solid, objective advice from a good real estate consultant, you can decide if it is the right time for you and, if so, jump in and take advantage of this once in a lifetime real estate market. For information on the market and to assist you with your research, visit www.Welcome2Indy.com.

Good luck!!!

Economy update

Unless you have been living under a rock for the past 2+ years you know the majority of the real estate market has been going through several challenges lately. In central Indiana alone our market has depreciated 11.3%. Not every neighborhood has seen this kind of depreciation-some have and some haven't. That is why it is critical to speak with a real estate professional to determine exactly what your neighborhood has seen as far as market conditions.

We aren't out of this yet, but the predictions I have seen recently is that the re-sale market is rebounding in the 3rd quarter of this year to as late as the 2nd quarter of next year. New homes are expected to rebound late 2009 or early 2010. Bottom line, with the low interest rates of around 6% and the high inventory of homes in central Indiana (11,000+), there is no better time than now to buy a home. There is a 9.7 month inventory of homes right now. The adage of, "buy low and sell high" clearly applies to buynig a home, too.

Visit our website at www.Welcome2Indy.com for lots of tools to help with your decision-making process and best wishes!

Indianapolis Real Estate Update

Well, the legislature finally got something right.  Effective with the 2009, pay 2010 taxes our property tax cap will be in place at 1% of the home's gross assessed valuation.  That will save homeowners potentially thousands of dollars each year in taxes and allow many to stay in their home.  As a result of the property tax cut, we have a 1% increase in our sales tax to a 7% total sales tax rate.  While this isn't a perfect option, it will give the greatest good, in my opinion to people who can be more discretionary in their spending.

This will make many more areas of Indianapolis, especially older homes much more affordable and help to make these homes more attractive to potential buyers.

This is an incredible time to buy a home with near record-low interest rates, lots of inventory, motivated sellers and extremely well-staged homes.  The phrase, "buy low, sell high" is very applicable here.  If you are even considering buying a home, now is the time to do it as the market is expected to start to balance out the 3rd quarter of this year.

For more real estate information, please visit www.Welcome2Indy.com

Happy house hunting!!

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!!

The Real Estate Market is Back!!

There is no doubt the spring real estate market has made an early appearance!! Yea!! Buyers are surfacing again and sellers are coming out in droves to list their houses. With interest rates at near record lows, inventories at record highs, and pent-up demand, there is no better time to buy a house than in 2008! That's right, this is YOUR year if you are looking to buy a home in or around Indy.

Sellers are still giving great deals and if you have a house to sell as well and are looking to buy another house, you will most likely come out okay since you will probably GET a better deal than you will have to GIVE, especially if you are upsizing.

If you have decent credit, banks and investors still want to lend you their money, so that is not an issue. We should have a resolution to the tax situation in Marion County in the next few months and most economists are predicting 2008 to be the bottoming out of this correction. Indy is predicted to come out of this the 2nd fastest in the nation.

So, get out there, buy a house and get a great deal. This is probably your last chance for a while.

Happy Holidays!!

Happy Holidays! While this time of year isn't the best for putting your home on the market, it IS a great time to prepare your home to go on the market in the spring. And when exactly is "spring"? Generally speaking, in Indianapolis, the spring market starts right after Superbowl, barring significant snow fall and other inclement weather.

During this holiday season, it would be good to donate or store off-site any clothes or items you don't use anymore. If you have any wallpaper, this is a good time to remove it and give your entire house a fresh coat of paint.

Remove pictures, religious items, and anything very personal. These can be proudly displayed once again in your new home. Begin to pre-pack and box up many items you don't use much. Rent a storage facility to store these items until you are ready to move. Invite your real estate agent or staging professional over to give you objective advice as to what needs to go and what can stay.

Lastly, have your home inspected with a pre-listing inspection and work through the "punch-list" during this "off season" time. You will have to repair many of these items anyway, so why not do them on your own time and you may be able to do many of them yourself saving you lots of money. Then, once repaired, you can market your home as being inspected and repaired. That is a huge advantage over your competition. :-)

For more tips, visit our website at www.Welcome2Indy.com. Good luck with your home preparation!! Merry Christmas!!

Happy Thanksgiving!

We want to wish all of our friends and clients a very happy Thanksgiving holiday. Even though the real estate market has been challenging for most people, we feel very thankful we have been given the opportunity to help so many people this year. For us, this year has been one of the best ever for us and that is solely due to our amazing clients and friends who have worked with us and referred clients to us. THANK YOU!!!

It is truly a blessing to work in a field you love where you have an opportunity every day to changes people's lives. That is a responsibility we don't take lightly and we feel it is an incredible honor as well.

While real estate is certainly not where it was in 2005, and we do still have our challenges, it is much better here in Indy than in many other areas of the country. In fact, Indianapolis recently was ranked 2nd behind Dallas/Ft. Worth, TX as being the fastest recovering real estate market. We are already seeing signs of recovery. So, if you are thinking about buying or selling a home, please give us a call or send us an e-mail. We'd love to consult with you and share options you have to make the most out of this opportunity. Visit us on the web at www.Welcome2Indy.com.

Merry Christmas, Happy Holidays and remember the "true" purpose of this season.

Tax Crisis Averted...for Now

Okay, we dodged a bullet, for now. Governor Mitch Daniels has frozen Marion County taxes back to 2006 levels until approximately mid-2008. During this period a new re-assessment has been ordered, including businesses, which were admitted by the assessors as not be properly assessed. If businesses ARE properly reassessed, it would stand to reason that residential property taxes will go down, however most experts believe that they will only drop by about 25%, still leaving some big increases in property taxes.

If you are selling your house now, there are a lot of questions educated buyers have, which are keeping them on the sidelines until some finality is announced and for good reason. Many buyers, however are still in the market to buy new homes in Marion County and are taking a big risk at having to pay significantly higher taxes.

The real estate market in Indy is still far from 2005 booming standards with 22.6 months worth of inventory on the market and sluggish showing activity, however Indy has been selected by several industry experts as being the 2nd fastest major metro market to recover from this correction, second only to Austin, TX. This is excellent news!!

With a tightening in the lending industry to keep buyers out of the market who shouldn't be buying a house at this time. If you have good credit and at least 3-5% down payment, the tightening of the lending industry will not affect you at all.

Experts predict that our market will notice a positive change in the real estate market sometime next year and that is good news for everyone!

For more real estate resources, visit our website at: www.Welcome2Indy.com

Property Tax Crisis

If you live in Marion County, you are well aware by now of the property tax crisis so many of us are in right now. Because we are in this "perfect storm" property owners are biting the bullet and some are seeing their taxes increase over 100%! Why is this happening and what can you do?

There are many reasons why our taxes are rising. First, this is a "trending" year, which means every two years property owners' home values will be increased due to trending or appreciation. Second, our property taxes are now based on market valuation instead of component valuation, which means taxes SHOULD be more uniform and less subject to interpretation, which is good, in theory. Third, due to rising city costs, increased revenue is needed and property taxes were considered by our legislature as the best place to find it. Fourth, inventory taxes have slowly been phased out since 2003 and that revenue needs to be replaced somehow. The inventory tax was considered to be unfair to many people and businesses paid approximately 60% of the tax burden. This leads to the fifth reason taxes have gone up and that is due to the fact that the legislature decided to balance that more by increasing property taxes.

There are more reasons why taxes have gone up, but time and space prevent me from discussing further. However, what to do now? Have your taxes gone up significantly? First, what was the gross assessed value the assessor states on your reassessment card? Does it seem reasonable? If it does, you are stuck paying those taxes. Do you have all of your exemptions filed? The two most common are homestead (you can have one of these only on only one property in the state) and mortgage (if you have more than 11 payments remaining on your mortgage or if you have a home equity line of credit you have have one of these). If you don't have these or others filed--file them!!

If you feel the assessor has your home valued too high then get a couple of broker price opinions (BPOs) to support your belief complete with comparables and a letter explaining the reason for the valuation. This valuation should be based on 2005 values as that is the last year for which the assessor has sold data on which to base your assessment. You have 45 days to go to your local assessor's office and file a protest letter. Attach your BPOs as evidence and, in many cases the assessor will change your assessed valuation right on the spot, if he/she agrees with your reasoning. If he/she doesn't agree, you can appeal to the next level and you will need to get that information from the assessor.

Should you have any further questions, visit our website at www.Welcome2Indy.com or call us at 317-558-6817. Good luck!!!!

Buyer Market in Indy?

Summer is here, but where are the buyers? Indianapolis is not unlike many other cities right now, which is in the dead-center of a buyer's market. There are approximately 26,000 homes for sale in central Indiana. Builders have experienced a 36% decline in sales this year and are offering some huge incentives to buyers as a result.

Sellers are struggling as inventory continues to soar and buyers can afford to be picky. Houses, which are selling right now are ones that are well-staged, in good locations, with good floor plans, and most importantly, are priced very competitively. Quite frankly, buyers don't care what you paid for your home, how much you put into it, or how much you "need" to get out of it. Buyers will pay you what the current market will support and that may not be very kind to you financially. Your option is not to sell.

If you must sell in today's market, be ever vigilant of your competition and price and stage your home accordingly and you will eventually be successful. Some sellers are fortunate and sell their home in a couple of days, but they are the exception, not the rule. The absorption rate for homes in Indianapolis right now is 8.2 months, which means if no other homes went on the market it would take 8.2 months to exhaust the current supply. The average is 6 months for a balanced market, believe it or not.

Feel free to contact us for more information or visit our website at www.Welcome2Indy.com for more resources.

Spring is Here!

Spring is here in Indianapolis, but we aren't home free yet. There are still 7.2 months of inventory currently on the market and builders aren't moving their inventory nearly as quickly as they would like. Most are down 20% in sales last year alone! A balanced market is 6 months of inventory. So...we are still in a buyer's market, which is great for people in the market for a home without one to sell.

For the first time since 1980-81, real estate in Indianapolis experienced a 5.2% DEPRECIATION in 2006. We expect to see us come out of our "correction" by the end of 2007 and builders should see their inventory shrink back to "normal" levels by mid-2008.

If you are in the market for a home, this is the time to buy. Interest rates for a 30-year fixed rate mortgage are around 6.125%, which is excellent!! If you have been waiting for the right time to buy, this is it!!

The Market is Heating Up!!

Believe it or not, the market is heating up in Indianapolis!! Not every agent will agree, but from what we've seen, buyers are looking (and buying) and sellers are putting their homes up for sale during the holidays. What does this mean to you, you ask? We have, for the first time in a long time during the holiday season a market in full swing.

If you are thinking of buying or selling, now is a great time to do it. Give us a call to find out what your options are and to discuss your specific situation--www.Welcome2Indy.com.

Happy Holidays!!!

Holiday Home-Selling Tips

Welcome to the most wonderful (and stressful) time of the year--especially if you are trying to sell your house. What are your options to help make your sale quicker? You always have options and there are many which can help you sell your home faster. If it is vacant, this will be a little more difficult, but necessary to be sure.

1) Keep the holiday decorations to a minium. If you love holiday decorations, try to pack most of them away to enjoy next year at your new home. Buyers don't need to be distracted by all of the extra "stuff" in your house and some may be offended if they have different religious beliefs.
2) Keep a colorful doormat outside and inside the house to add color and reduce dirt tracked through your house.
3) Pre-pack all unnecessary items and store in a storage facility or garage, if necessary. People have a hard time seeing the house through all of the "stuff" in the house. Your "stuff" is not staying anyway, so start packing!
4) Keep fresh-cut flowers in the kitchen to add some color and fresh smells.
5) Don't keep presents out in the open during showings. That can be too tempting for some buyers or their children.
6) Don't burn a fire in your fireplace, if it will not be attended the entire time. While fires smell great, they are dangerous, especially while unattended. The same goes for burning candles. Use fresh flowers or air fresheners.
7) Keep all blinds open and lights on. This is not the time to be cheap with the utility bills. A light, bright house sells.
8) Fresh paint is the best investment you can make in your home. Remember, keep it neutral and remove ALL wallpaper. Wallpaper is one of the biggest decorating faux pas you can make since most all buyers will want to remove it and they know how time-consuming and boring it is.
9) Play soft music during showings. Tune your radio to an easy-listening station and keep the volume low.
10) Keep the driveway and walkway clear and shoveled, if you are in an area with snow. You want to make it as easy as possible for people to get to your front door, which , by the way should always be clean with the hardware polished and fresh paint on the door.

So, there you have it. Of course, there are many more tips and we would be happy to schedule a private consultation, should you wish. Just contact us via our website at www.Welcome2Indy.com.

Happy Holidays!!!

Market Update

OK, my last post was pretty depressing. I admit it. Has there been any improvement? Unfortunately, no. There are over 18,000 homes currently on the market in and around Indianapolis. That is a 27% increase over this same time last year. Builders are reporting being at least 20% under sales goals for the year.

The best position to be in is still the first-time home-buyer. If you don't have a home to sell, you can take advantage of this buyer's market. But, what if you DO have a home to sell? Here are some tips:

1) Take a good, hard, objective look inside and outside your home and depersonalize and declutter. This isn't easy to do. But remember, you are competing against 18,000 other homes right now. How do you stand out? You will have to pack up your items anyway, why not start now and make it that much easier when it comes time to move? Anything, which isn't absolutely necessary in day-to-day living should be pre-packed and stored in a storage unit or neatly in the garage, if necessary.

2) If you have any wallpaper, remove it. I don't care if you think it looks good. Wallpaper is outdated by the time you hang it. Remove it and paint a neutral color such as white or taupe. In fact, it wouldn't hurt to add a fresh coat of paint to your entire home if it hasn't been painted in the past five years. Same goes for the outside.

3) Shampoo all carpet and replace any worn or dated carpet. If you have hardwood floors either exposed or under carpet, make sure they are freshly polished or refinished, if need be. Hardwoods are extremely popular. Show them off!!

4) Have your home professionally cleaned. Don't skimp on this.

5) Make sure you have lots of color outside your home, such as colorful plants and flowers.

6) Have a pre-listing inspection and repair all items in it. It will save you from doing it after you have already agreed to a price and have to give away more money to make repairs and it is a powerful marketing tactic to market your home as inspected and all repairs made.

These are just a few of the major items. There are many, many others. Hire a professional home stager or buy a staging book and follow its advice.

The bottom line is that there is so much inventory out there right now, that if your home is not in tip-top condition, staged well, and priced very competitively, you simply will not sell your home. Sellers do not command the market anymore and it is not uncommon to see homes sitting on the market for more than a year.

Be fair to this tough market and it will be fair to you. Should you have any more questions, please do not hesitate to conact us. We are always happy to help.

Is The Market Really Slowing?

For months now, we have seen, read, and heard people saying our market is cooling off all over the country. Indianapolis is no exception, unfortunately. We are clearly in a buyer's market with excess inventory, and a limited supply of buyers. Builders are not helping our current market situation with adding to the inventory every day. Interest rates are going up, our appreciation rates are still holding steady, if not declining at around 3%/year, and we are still one of the top foreclosure states in the nation. All of this makes for a very murky real estate market in Indianapolis.

So, what to do? Well, unfortunately not much. If you are a first-time homebuyer, you are in the best position of all since you don't have a home to sell. Buyers are calling all the shots and sellers are giving pretty good deals, just to get out of there and move on. Seven out of ten homes I see are vacant, which usually leaves sellers pretty motivated, as they are typically paying two mortgages.

Our market is going to start slowing up even more after school starts up again mid-August. At that time we will be in the fall market, which is our third slowest. That will continue until approximately mid-November, which the winter market sets in until after Superbowl, when the spring market starts heating up.

If you do have a house to sell now in Indianapolis, your best best is to make sure your home shows incredibly well. Have a pre-listing inspection and make the necessary repairs. Stage it well and stage it to sell. Then, price it competitively and market it well! You have about 18,000 other homes on the market competing with you at any given time right now in Indianapolis.

Let me know if I can help with your real estate needs. Best of luck!!!

Seniors & Real Estate

For those who are 55+ years of age and still wanting to buy a home here in Indianapolis, which meets their lifestyle needs, you may be a little disappointed with your options. As usual, Indianapolis is way behind the times in keeping up with new trends and the changing needs of Baby Boomers are no exceptions.

From my experience with my clients who are over the age of 55, they haven't found many options, which suits their wants and needs in new housing. Many of my clients are looking for quality-built homes on one level with storage space such as a basement (finished or unfinished), or spare bedroom(s) near community activities and many want to be near their physician as well.

Many of the quality homes offered here in Indy are 2-story and very large, which is not what these clients want/need or are entry-level ranches with little quality. Another option available is a seniors' community such as Robin Run Retirement Village on the northwest side of Indianapolis off of 62nd Street between Georgetown & Zionsville Roads. This unique community offers fee-simple (you own it) garden homes with a multitude of activities and all exterior maintenance provided as well as some interior maintenance. They have medical staff on-call 24-hours/day and they even have apartments available for residents who need more assistance. This is a great hybrid option for many people.

Builders are just now starting to build more seniors' communities here in Indianapolis, but they are many years away from becoming commonplace. For more options available to you here in Indianapolis to serve this wonderful time in your life, please contact me and I can guide you through the options and what choices you have. Both Jack and I are Senior Real Estate Specialists who specialize in the 55+ age-range.

Good luck with your decisions!

Taxes

Let's talk about property taxes! In Indiana property taxes are a little different than in every other state except Arizona. First of all, property owners are taxed in arrears, which means that the taxes you owe for 2005 were actually incurred in 2004! It is for that reason that sellers generally provide buyers with a pro-ration tax credit at closing to cover the taxes for which they are responsible, but have not yet paid. This is typically equal to approximately one year's worth of taxes depending on when during the year you close.

Another important aspect about Indiana taxes is that just two years ago we experienced a tax reassessment. This reassessment reallocated how different sectors of our economy pays their share of taxes. For example, corporations ended up with less of a tax burden and homeowners ended up with more of a tax burden.

Older homes, which historically enjoyed lower taxes started seeing up to 300% increases in their annual property tax bill! This created a shift in valuation in these older neighborhoods and much lower appreciation. Some such neighborhoods in Indianapolis, which experienced these significantly higher taxes include: Broad Ripple, Butler-Tarkington, & Meridian-Kessler. As a result, sales prices have not risen as much as in the past and we are seeing many more houses on the market as homeowners are not able to afford the higher taxes and choose to put their houses up for sale causing a glut in the market and a further devaluation of home prices.

For more information about taxes and real estate in Indianapolis, drop me an e-mail at Steve@Welcome2Indy.com.

Happy New Year!!

Welcome to 2006!! Industry experts are predicting the real estate market will continue to be strong again this year making for happy buyers and sellers. Our spring market usually starts around the beginning of February, weather permitting. Indianapolis real estate should be expanding around then allowing buyers to find more options and sellers more buyers for their homes.

In the Indianapolis-area, our listings sell for approximately 97-98.5% of the last listed price, so there isn't a lot of negotiating of prices here. If a home isn't priced well, it will sit for a long period of time.

During the winter months, sellers usually take their homes off the market, wait until spring to put their home on the market, or just hunker down without much expectation of garnering a sale until springtime. This can really work to the buyer's advantage equating to a 1% or so price reduction the seller is usually willing to give to get the house sold versus hold onto it until the spring market. However, there is much less inventory from which to choose as well. Always a double-edged sword.

Feel free to e-mail me with any questions about the Indianapolis, Fishers, Carmel, Noblesville, Westfield, or Zionsville markets. We work those areas exclusively and are happy to educate you on the areas and real estate in general.

Make it a great 2006!

Spring Time is Near!

Are you ready for the spring market? We are seeing some strong signs of it already. Many people think the spring market doesn't start until April or May, but by then the beginning of the market is already past. We are seeing a strong increase in buyer and seller traffic and are gearing up for another very busy spring season. If you are thinking about buying or selling this year, now is the time to start thinking about it as, according to MIBOR 76% of all homes sold during the year are sold in the first six months. So, get ready, get set, go!! Give us a call...