Tag Archives: finance

buying, commitment, Communication, education, Inspiration, planning, Team work, tips

Stop trying to buy a home you can’t afford!

June 16, 2020 Settles Team

Just because your best friend just bought a home does not mean that you are financially ready to purchase one yourself.

You do not know their full true financial situation and unless you have set down and written down all your own expenses and income, you do not know if you can afford buying a home yourself. Just because you think you can make a certain house payment does not mean you can.

Moving Day — So, before you start looking for your dream home you need to look at your personal financial information.

Yes, I understand you want to move out of your apartment or parents’ house and finally have your own house, but you first need to look at your own financial plan before purchasing your brick and mortar home. So, before you start looking for your dream home you need to look at your personal financial information.

What are my bills? This includes your monthly expenses like utilities, rent, insurance, credit cards, food, gas, clothing, automotive repair and maintenance expenses, and any other monthly expense you have. When you need to pay child support or have judgments you are paying on, you need to include them. Garnishments will show up on your paycheck as deductions.

What is my income? Pull up at the minimum 3 months of current and consecutive paychecks. This will give you a good average of your income situation.

Have you looked at your current credit report? I don’t mean looking at your credit score. I mean looking at the things that are listed in your credit report. Every time you are late with any form of payment it is being reported to the credit reporting agencies.

After looking at your entire financial situation, you can then determine if you can afford a mortgage payment of no more than 25% of your monthly take home pay. That mortgage payment needs to include the insurance and taxes on the home you are planning on purchasing. If the proposed payment of a house you are considering causes you to need a 30 Year mortgage, you may need to consider the size of home you will purchase, or you need to pay off some of the current expenses you may have.

Why should anyone try to acquire a 15-year mortgage for your home purchase? Very simple. You should be able to own your home free and clear and not have a mortgage payment for the rest of your life.

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The Settles Report

July 30, 2014 Settles Team Leave a comment

Every week we pull information for the Central Indiana real estate market and look at the last week’s market condition for central Indiana. To simplify the process we are pulling the information for three counties that are part of the Central Indiana real estate market.

We used Marion, Hamilton and Johnson County for our report that is for 07/14 – 07/21/2014.

That week Marion County had 361 new listings with an average list price of $132,731. Hamilton County had 349 new listings with an average list price of $237,182 and Johnson County had 85 new listings that were made available with an average list price of $184,623.

Clay Township, within Hamilton County, had the most listings that were made available with 54. Taylor Township was not far behind with 35 new listings. In Johnson County Pleasant Township had the most new listings with 34. Right behind is White River township area with 31. Marion County had the most new listings in the Washington Township area with 61 and right behind it was Warren Township with 54.

During that same week Hamilton County had 125 properties where the sale is now pending (in escrow). Johnson County had 42 properties that the sale is now pending (in escrow) and Marion County had during the same week 229 properties that have a pending sale offer (in escrow).

Marion County during that same week had the most closings with 281. The average sold price for Marion County was $113, 645 for that week and the average marketing time was 85 days. Johnson County had 63 properties that closed during that week and the average sold price at that time was $191,972 with an average of 81 days of marketing time. Hamilton County had the fasted marketing time of 45 days with an average sold price of $236,427 during that week.

When you are looking for a real estate firm who understands their clients and the market, contact the Settles Team. We are here to assist our clients in fulfilling their real estate dream.

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Facing the financial aftermath of a divorce, Part 1

July 18, 2014 Settles Team Leave a comment

No matter how you twist and turn it, starting over after a divorce is not easy. Not only will be the assets divided but also the liabilities most of the time. Many times, it will hit a woman much harder than a man. Traditionally the man is the one who holds all the credit because traditionally they are the “bread winners” of the household. This does not hold true 100% of the time but it is close to 95% of the time.

Continue reading Facing the financial aftermath of a divorce, Part 1 →

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Why is my house not selling?

July 16, 2014 Settles Team Leave a comment

Have you ever driven though a neighborhood and noticed For Sale signs coming and going but there is that one house that has not sold and it is still sitting there waiting for a buyer?

I spoke to a friend of mine the other day who actually sold his home as a for-sale by-owner and he had his house sold within 4 days. His neighbor’s house has been on the market already for several months.

Most the time you hear agents speak about location, location, location.

Many times you cannot control the location of your home unless you are willing to pick it up and move it. With trending neighborhoods, a good location might turn into an undesirable location and an undesirable location may turn into the new hot spot. Location is one of those things you cannot control so focus on the things you can control.

What is under your control?

Cleanliness of the inside and outside
Yard maintenance
Property maintenance
Interior decoration

Have your ever gone to the grocery store with the intention of picking up only one item and discover when returning to your car you had many items, but not the one you wanted? Think of your home like that grocery store. It is up to you and you’re listing agent to spark the interest of a potential buyer to as many characteristics of your house as possible.

In a store, the end caps at the end of each isle have a specific purpose and your end cap is the exterior of your home. The purpose for the end cap, and your exterior of your house, is to entice the buyer to take a look inside. The stores use high profit items to lure you to the end cap and all of the sudden you are inside the isle and see other things you think you would like to have.

Each item in each isle is strategically placed on the shelves. Have you ever noticed the more reasonable priced items are on the bottom shelve and the more lucrative items are right at eye height? Your isle is the interior of the house. So let’s put the more “reasonable priced” items like personal pictures, trophies and additional clutter on the very bottom of the shelve (storage) and put the more buyer appealing items at eye height. And remember, sometimes less is more.

The next time you go grocery shopping check out the lighting in the store. Have you ever noticed that the store has different types of lighting? Some areas have a more cool looking lighting and others have brighter lighting. Now translate this to your house you want to sell. The more inviting the lighting is in your house the more appealing it looks to the buyer.

Keep this in mind! Think of your home like that of a grocery store. It is up to you and you’re listing agent to entice the buyer to make them shop.

When you have any questions, or would like to have the Settles Team help you make your home look more appealing to a buyer, contact the Settles Team.

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Settles Report

July 15, 2014 Settles Team Leave a comment

To make things simpler we are focusing only on three Counties that make up the central Indiana BLC for our report for the time between July the 7th and July the 13th. When you are looking for information on additional counties that are part of the Central Indiana MLS contact the Settles Team.

Marion County had the most properties listed during that week totaling 404. Hamilton County had 203 properties that where made available for sale and Johnson County had 70 properties that were made available to the public.

For Marion County Indiana, Washington township was the area where most of the homes where made available for sale with 67 new listings. Lawrence Township was not far behind with 62 new available properties. Average list price for Washington Township was $245,488 and the average for Lawrence Township was $205,026.

In Marion County 185 Properties had an accepted offer (in escrow) and 230 closed during that same time. Washington Township had the most closings totaling 41 with an average sold price of $223,859. That was about 5.5% below the asking price.

Lawrence and Perry Townships both had 30 closings each week. Perry Township had an average day on the market of 66 days and Lawrence Township had an average of 62 days on the market. The average sales price for Lawrence Township was $184,741 which was 2% below the original asking price and Perry Township had an average sold price of $116,282 which was 4% below the original asking price.

Johnson county Indiana also had a busy week. Not as busy as Marion county, but Johnson County was not sitting still. White River Township was the listing leader with 27 new available properties and Pleasant Township was not that far behind with 21. The average list price for White River Township was $249,248 and Pleasant Township was $164,333.

37 properties in Johnson County had an accepted (in escrow) offer and 45 closings occurred that same week. Pleasant Township had the most closings totaling 20, and White River Township during that same week had 14 closings. Pleasant Township had an average sales price of $120,696 which was 3% below the original asking price and White River Township had an average sold price of $260,316 which was 6% below the original asking price during the same time.

Hamilton County Indiana had not been lazy during that week. Clay Township had the most listings that were made available during that week totaling 58, and with 46, Fall Creek Township was right up there as well. The average list price for the Clay Township was $390,620 and Fall Creek Township was $ 315,685.

111 properties in Hamilton County had an accepted (in escrow) offer and 140 closings during the same week. Clay Township had the most closings totaling 38, and Fall Creek Township during that same week had 28 closings. Clay Township had an average sales price of $379,146 which was 4% below the original asking price and White River Township had an average sold price of $260,316 which was 2% below the original asking price during the same time.

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Settles Report

July 11, 2014 Settles Team Leave a comment

For this report we looked at the active, pending (in escrow), and sold stats for Marion, Johnson, and Hamilton Counties for the week of June 30^th to July the 6^th.

Marion County was the county having the most properties offered for sale during that week. There were 389 properties listed with an average list price of $129,680. Washington and Lawrence Townships were the leading townships with 62 new listings each. The average list prices for Washington and Lawrence Townships were $218,531 and $213,983 respectively. During that same week, the entire county had 189 properties having an accepted offer (pending sale, in escrow) with an average 67 days of time on the market. 335 other listings closed that week.

Hamilton County had 176 homes entering the market that week. The average list price for Hamilton County was $299,368. Clay Township had the most properties offered for sale through the local BLC. The average list price for Clay Township that week is $322,314. Clay Township led the county with 44 new listings. Noblesville followed with 41 new listings. The average list price for Noblesville was $289,037. During this time Hamilton County had accepted offers on 100 properties (pending sale, in escrow) with an average marketing time of 66 days. 194 made it to the closing table.

Johnson County had 67 new properties entering the market through the local Central Indiana BLC. The average list price during this time was $231,843. Pleasant Township had the most new listings with 25 and White River Township is following with 22 new listings. Pleasant townships average list price that week was $124,680 and White River Township was $263,185. Johnson County had 38 accepted offers (pending sale, in escrow) after 105 days of marketing. 58 properties closed during that week.

For more detailed information on sales within your area contact the Settle Team for more information.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Demystifying what a Real Estate Agent does in a real estate transaction

June 30, 2014 Settles Team Leave a comment

“What does a real estate agent do” is a frequent question that is being asked. Let me see if I can demystify what a Real Estate Agent does during a transaction.

Many of the things a Real Estate Agent does are many times done outside of the public eye. What the public sees mostly is the interacting directly with our buyer or seller clients.

Depending on in what state you are buying or selling your real estate, you may have different types of real estate agents involved in the transaction. Each one of them may have different obligations they need to fulfill during a transaction that is either governed by local, State, or Federal laws/rules.

None of them are allowed to disclose the following information to either party, whether it is to a buyer or seller, unless agreed to in writing by both parties.

a)      Any material or confidential information (except adverse material facts or risks actually known by Licensee concerning the physical condition of the Property, and facts required by statue, rule, or other requiring entity).
b)      That a Buyer will pay more than the offered purchase price for the Property.
c)      That a Seller will accept less than the listed price for the Property.
d)      Other terms that would create a contractual advantage for one party over another party.
e)      What motivates a party to buy or sell the Property?

Most commonly, everybody knows the Buyer or Sellers Agent. That could be either a Broker or a Salesperson (some states). More and more, there are now also Transactional Agents that formerly where dual or limited agents. A Transactional agent does not represent a buyer or a seller. They are a neutral go between for both parties to help them complete a transaction.

A buyer’s agent is ONLY representing a buyer and not a seller at the same time! A buyer and seller are represented by the same Agent during the same transaction is commonly called a dual/limited agency and it is not legal in all states. In many cases the dual/limited agent has been replaced with a transactional agent and it has to be understood and agreed to in writing by all parties.

Feel free to contact us and ask for the Agency relationship brochure that explains the difference between a Buyers, Sellers and Dual/Limited Agents.

Due to the different in the governing bodies that govern what a Real Estate Broker/Agent is allowed to do, you need to check with your State directly. There are basic functions a broker does that is pretty much within reason the same in every state.

Comparative Market Analysis (CMA) — an estimate of the home’s value compared with other properties located within the same neighborhood or within a certain distance of the subject property. (competition for the subject property)
Total Market Overview — an objective method for determining a home’s value, where a CMA is subjective.
MARKETING — Marketing the real property to prospective buyers.
Facilitating a Purchase — guiding a buyer through the process.
Facilitating a Sale — guiding a seller through selling process.
FSBO document preparation — preparing necessary paperwork for “For Sale By Owner” sellers.
Real estate appraisal — in most states. Other states a broker has to be licensed as an appraiser.
Home Selling Kits — guides to how to market and sell a property.
Real Estate consulting – based on the client’s needs.
Leasing for a fee or percentage of the gross lease value.
Property Management – In some states the broker has to hold a Property Management certification.
Exchanging property.
Auctioning property – unless the state requires an auctioneer license.
Preparing contracts and leases. (not in all states)

When you have any questions about this or any other Real estate related topics, feel free to contact the Settles Team. We are never too busy to help you with any of your real estate related needs.

buying, commitment, Communication, education, Inspiration, planning, Team work, tips

2014 Home-A-Rama, Westfield IN

June 20, 2014 Bettina Settles Leave a comment

Just as in previous years, Home-A-Rama 2014 again has some great custom builders showcasing their craftsmanship. This time they are in the Brookside Neighborhood by Langston Development located in Westfield IN.

Brookside is one of Westfield’s premier neighborhoods with a variety of custom homes. Due to the variety of custom builders building in this Neighborhood you never will have a house that looks the same as your neighbors.

This year the Home-A-Rama 2014 features G&G Custom Homes, Bedrock Builders, Hoss Homes, M/I Homes – Showcase Collection, and Heartwood Custom Homes.

The Brookside neighborhood itself is a very diverse and stylish neighborhood with home prices ranging from $600,000 to $1.7 million. Just minutes away from all major conveniences like recreation, shopping, and schools. Brookside is located on 161th Street East of US 31.

Every one of the builders being showcased at the 2014 Home-A-Rama had a very unique style. I found that high vaulted ceilings and open floor plans are still popular.

Even when you have an open floor plan you still can find corners that will be quite enough for conversation or relaxing. Hideaway spaces like a hidden game room or reading /play room found itself into their design as well.

Pocket and barn doors have finally made their way back into the Midwest building style. It makes a stylish addition to a home and also will make room for other amenities. Clean lines and simple but stylish décor design helped showcase the builder’s craftsmanship.

For more information about this or other neighborhoods, the builders, or the area in general contact the Settles Team.
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commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Let’s Tackle The Financial Past

June 5, 2014 Bettina Settles Leave a comment

Many of us are still working through the aftermath of a short sale, foreclosure, or some other financially devastating event. Rather than buying another house you need to rent till you get back on your feet.

Yes, the current mortgage rates are great and it would be a great time for buyers to get into the Real Estate market but when you are still working through your aftermath of a possible divorce, short sale, death, or have a lot of late payments, or even judgments at this time against you, you would be better off to rent rather than buying. Even with many lenders now loosening their lending guidelines, many of them are still looking for a 1 to 3 year clean credit record. This does not mean it has to be absolutely perfect but when you are constantly late on utility bills or have reoccurring judgments showing up on your credit report, you could still be a credit risk to the lender and they might not be willing to give you a loan until you show that you are a truly responsible consumer.

You need to be prepared that your potential landlord will run a credit check and there is the chance that you might not get to rent the house or apartment due to what is on your credit report.

Either way it is time to tackle the financial past and finally kick the bad ratings out of our life. Unless you tackle them they will haunt you for the rest of your life and they will affect everything you do from renting, buying another vehicle or house, or possible employment.

When you would like to have more information on how to get started kicking your financial past out of your life please contact us for an absolutely free and confidential meeting where we can discuss your individual situation.