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Settles Report

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.

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

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“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.

FHA flipping rule waiver still in affect


I am finding a lot of confusion and different interpretations when it comes to flipping homes using HUD/FHA loans. The last time I heard and read on the Federal Registrar website, was that HUD still has a waiver in place until the end of December 2014 that is applicable to all single family properties being resold after the 90-day holding period after acquisition.

There are some stipulations that are still in place even with the flipping rule waiver.

  • The property was openly marketed and was available for any type of buyer.
  • The property was not repeatedly flipped over the last 12 months
  • The transition needs to be an arms-lengths transition.

When a property is marketed for more than 20% of the current sellers purchase price there will be additional stipulations before the property can close with an FHA loan.

  • Property will need a second appraisal and the buyer is not allowed to pay for the additional appraisal. It has to be paid for by the investor.
  • Investor has to justify and prove the value of the increase in pricing by the additional appraisal and supporting documents.
  • An FHA approved inspector has to inspect the property and any needed repairs or updates need to be completed prior to closing by the investor and those repairs have to satisfy the FHA inspector.

From what I can see on my end, you still can flip a property within the 90 day period and have a FHA buyer. Just when the property is priced 20% above your original purchase price you have to jump though some extra hoops to get the property approved for the FHA.

Attached is the FHA flipping waiver ruling for your review.

When you have any questions about this or any additional Real Estate questions, feel free to contact the Settles Team.

 

Easy “no cost” seller ideas to use to sell your home when you are in trouble.


When you are faced with being forced to sell your home and you do not have the money to invest in repairing it, you may then have to sell it “AS-IS”.

Here are several things you can do to give your home the best chance to sell quickly even if it needs repairs.

Think of what you can do and not what you can’t do



None of these ideas cost you money and it is possible they may make you some money! (OK one maybe will but only if you have no other option)

In the sellers disclosure identify what needs to be repaired. Better to disclose than to hope the buyer will not see the areas that need attention.

  1. Start clearing out and start selling items you do not need. Look in every nook and cranny.
  2. Remove all your personal pictures and notes from the walls, desks, tables and refrigerators. Buyers are not interested who is in the house they want to know about the house.
  3. Vacuum the carpets all over the house, under the bed, under the couch, and the chairs.
  4. Deep clean all of the bathrooms, and the Kitchen. Do not forget behind the stove and under the refrigerator. People will pull the shower curtain to see how clean the shower is.
  5. Take a damp sponge and clean off all the finger smudges of the walls by the light switches and other places you can find. Don’t scrub hard be very gentle.
  6. Clean out overstuffed closets. Put the excess in to storage or sell it.
  7. Organize your kitchen. Get rid of the junk drawer (we all have one).
  8. Clean off the kitchen counter top. If you keep it cluttered, you are telling the buyer that you do not have enough storage room for your items.
  9. Clean out the garage. If you have to sell some of the stuff you have then do so!! Otherwise put it into storage. Do not use the garage as storage unless you are planning on telling the buyers that the house is too small and does not have enough storage.
  10. Clean up the yard!!!
  11. Mow the yard and keep it trimmed!!!
  12. Ask friends or family members if they have some plants you could plant in your yard when you have none.
  13. Clean your windows and open the curtains to let light in!!!

All these ideas, except for putting some of your items into storage, will cost you no extra money you would not be spending anyway. What you will be spending mostly is your effort to get it done.

The faster you can sell your home, the faster you can get back on track, and the faster you might be able to get in to a new home. The longer it takes, the larger the shortfall will be. In this case time is money!!!!

2014 Home-A-Rama, Westfield IN


G&G Custom HomesJust 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.

20140606_140355Brookside 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.

20140606_145017_1This year the Home-A-Rama 2014 features G&G Custom Homes, Bedrock Builders, Hoss Homes, M/I Homes – Showcase Collection, and Heartwood Custom Homes.

20140606_141705_1The 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.

20140606_143419Every 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.

20140606_142924Even 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.

20140606_145845Pocket 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 dĂ©cor 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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Let’s Tackle The Financial Past

Stressed Over MoneyMany 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.