Tag Archives: Real Estate acquisition

Settles Report

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 30th to July the 6th.

stats_1Marion 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.

Is a Condo for me, or not?

House4_403_604Urban renewal is becoming more and more popular. Most of the people moving back in to the urban areas are baby boomers and executives with some free time on their hands. For this reason most of them are choosing to live in a condo. The trend of turning former apartments or an old factory in to condos has helped to turn around some of the urban areas. You can find great homes for reasonable pricing or a top notch location for a higher end price.

Before you buy a condo you should do some research into the condo rules and regulations? Each community will have their own fees and rules. You should familiarize yourself with each of these to understand what rights and responsibilities you as the condo owner will have.

Find out who is enforcing the Condo rules and regulations? Is it a homeowner association? A management company?

Most of the time condo owners are responsible for everything on the interior and the association is taking care of everything on the outside of the building. In some cases you may have an assigned parking space in an underground parking garage. When the condo is on a lake you may have a boat dock you can lease.

Some of the condominium associations might charge you an additional fee that helps them to offset any exterior repairs they might encounter and that fee is most of the time part of the condominium fee you have to pay, in addition to your mortgage and insurance payment.

Some other things to consider is that when your condo is on the 38th floor, are you willing to run down 38 flight of stairs in emergency? You may also have other restrictions due to the building or condo associations rulings.

The nice part with a condo is that you are only responsible for the interior of your condo and the condo association is responsible for the exterior of the condo. You don’t have to worry about cutting the grass, fixing a roof leak or making any other exterior repair. The downfall is that the exterior maintenance upkeep is only as good as the condo community management company.

Either way, like with everything, there are positive and negative things you need to consider when choosing a condo to purchase. When you have any additional questions about condos feel free to contact the Settles Team.

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.

 

Are you in the market for a Retirement home?


Here are 5 key factors you should take in to account when looking for a home.

1-      When you are planning a relocation to a community outside the State you are living in consider vacationing in the area during both the busy season and off-season. Many communities have different ‘feels’ to them depending on the time of year. Some people make the mistake of buying a home in a town that they have only visited on vacations once or during the peak summer period.

2-
DSC_0002 During your vacation stay find out where medical care is located. According to AARP, more than 60% of Americans ages 50-64 have at least one of six chronic conditions such as hypertension, high cholesterol, arthritis, diabetes, heart disease and cancer. Once seniors reach the age of 65, more than 80% are affected by one of these chronic diseases. Close proximity to hospitals, doctors, and medical facilities should be considered when retiring.

3-
Think about gas prices and other conveniences. Your new home may be located far from family and friends and there may be no public transportation. You may end up spending a lot of money on gas and tolls. Twenty percent of people over 65 do not have a driver’s license. Many who do drive prefer not to drive at night or in inclement weather. Cost of living and the closeness of conveniences should be factored in as well.

4-
Determine how much living space you are comfortable with. Not having a family at home, your space needs will diminish. When looking at homes pay very close attention to how wide the door frames are. Does the home have stairs and if so how many? Do I need a basement and if so how will I get into the basement? Consider a garage attached or detached and whether they have stairs in the garage and attics when looking for a home. Also look for handrails or the possibility to put up handrails in areas like the bathroom or shower. The average size of a home for people over the age of 55 is 1,800 square feet.

5-
Look into social aspects of the area. If you like people, dining out, and shows, you may not want to opt for a remote location. Think about the activities you enjoy both during the day and at night. Many active-adult communities offer entertainment, bus trips to tourist attractions, and on-site shows and programs.

For help to find your perfect retirement home or any other real estate question contact the Settles Team!

When shopping for Home insurance, know what is in your policy.

Before I continue with this information let me give you a disclaimer; I am not an insurance agent or an attorney. For legal advice or any advice regarding this topic contact your insurance agent or legal counsel.

shoppingIn one of my blogs I discussed how to keep your home insurance low, but have you ever thought about what should be listed in your policy?

I get it. Some of the polices are written with such fine print that it would take a microscope to read it. How many layman really understand the legal mumbo jumbo contained in their insurance policy. A great Insurance agent can help you navigate the legal wrangling of your insurance contract.

Some things you should look for when you compare insurance policies.

Flood insurance: Many insurance policies do not cover floods of any kind. Even when you are not in a flood zone you might consider adding flood insurance to your policy. Floods not only happen naturally but also could be side effect of developments or construction in the general area.

Does your policy cover to “bringing your property up to code” in case of damage? Why is that important?

If your home was built 10 to 15 years ago it is possible that it may not meet current local code requirements. During the last 10 to 15 years many zoning ordinances and building codes have changed. To bring a home back up to zoning ordinances and building code standards could be a very expensive out of pocket expense when it is not covered by insurance. Typically, during the rebuilding process, buildings must be rebuilt to the new codes.

Man's Hands Signing DocumentAnother thing to look for in your policy is liability coverage that covers not only accidents, but also assault and battery. Regardless of how much we like our neighbors, friends, and family, when we invite them over to our home they may bring with them their personal life we might not know about. If they decide to duke out their disagreement on your front lawn you could be liable for damages or injuries they sustain. You need to make sure you are covered.

I would like to add another thought. Just because you paid off your mortgage does not mean you should drop your insurance coverage. What you should do is send a “paid in full letter” from your mortgage company to your insurance company so they can take your mortgage company off the policy. In some cases they will reduce your payment as long as you are personally occupying the house.

For more information on insurance related items contact your insurance agent or when you are looking to lower your rate contact one of the agents listed on our resource page. For any Real Estate related questions or concerns contact the Settles Team. We are never too busy to answer any of your questions or address any of your concerns.

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.
// ]]>

DIFFERENT TYPES OF LISTING CONTRACTS THAT ARE AVAILABLE TO SELLERS


Every seller has the right to sell their home without the help of a brokerage firm and that is called a For Sale By Owner (FSBO) listing. You as an owner make the decision of accepting or rejecting an offer from a buyer represented by a real estate professional. Many times, before the buyers real estate representative will present an offer to the FSBO owner, they ask the FSBO owner to sign a commission payment agreement that guarantees the broker a commission at the time of closing. This in many states is also called an OPEN LISTING.

Man's Hands Signing DocumentThere are many types of listing agreements that can be used in the sale of residential real estate.

Another form of contract is the EXCLUSIVE AGENCY LISTING. The huge difference between this and the EXCLUSIVE RIGHT TO SELL is that when the agent or cooperating agents brings a buyer to the transaction the seller would have to pay for the commission. When the seller brings the buyer to the transaction the seller does not owe the agents a commission at time of closing. Many real estate professionals are reluctant to work on EXCLUSIVE AGENCY LISTINGS due to the lack of control.

An EXCLUSIVE RIGHT TO SELL listing is used close 95% of the time when it comes to listing residential real estate for sale. With this type of listing contract, no matter who brings a willing and able buyer to the transaction, the agent will earn a commission. In most markets when the buyer is brought by a cooperating agent the commission is split equally between the cooperating brokers. The length of time a listing contract runs is negotiable. It can be as short as 30 days and as long as 6 months. It just depends on your local market.

Another form of listing is the NET LISINTG. In many states the net listing might not be legal. Many times with the NET LISTING, the seller tells the real estate professional what their net price is for the home and the agent adds their commission to the net price later when they have a buyer. There might be a conflict when this situation when the agent has an offer that is much higher net than what the seller requested. In this case the seller might feel cheated. On the other hand, when the net is much lower than the seller anticipated the agent might not earn a commission and is reluctant to present the offer. In my state, Indiana, in order for a NET LISTING to be legal, the maximum amount of commission must be stated in the listing contract and has to be disclosed up front and agreed to by the seller.

When you have any questions feel free to contact the Settles Team.

INVESTING IN REAL ESTATE BY USING OTHER PEOPLE’S MONEY

My preferred way to invest in real estate is cash. Many investors do not have that option or they do not have enough cash on hand to finance their investment. For investors like that there are other options out there to make their real estate investment dreams happen.

I am sure you have heard the saying ”using other people’s money” to invest in real estate and that is what I am talking about. Many of you would think of using the banks or credit unions money but creative financing has been a long time a tool in the investor’s tool box. There are other ways out there to finance your investment dreams.

Keep in mind that any form of investing comes with risk and before you begin investing you should educate yourself about the different forms of financing. With any real estate transaction it is also advised to contact an experienced and competent real estate attorney and CPA.

When you have found a property to invest in, and you have already found a buyer for the property, before you closed on it you might consider doing a double closing before you get a loan. During the double closing you buy and sell the property at the same time.

Macro focused in on "In God We Trust"One of the options could be seller financing. During the closing not all of the money is collected that is due to the seller. The seller is taking a promissory note and the title is still transferred to the buyer.

Another option is to take over the seller mortgage. Where the buyer agrees in writing to make the sellers mortgage payment directly to the seller’s mortgage servicer. The mortgage servicer has to agree to the arrangement.

You also can use private money to finance your investment. With all of the restrictions that are put on a mortgage servicer for them to be able to write loans, a source of private money would come directly from wealthy investors who are looking for another way to invest their money other than a bank or the stock market.

Another form of investing is the lease option. The key to this form of financing is to already have a second lessee lined up before you finalize your original lease option agreement. This will keep your money out of the deal. How it works is that you lease the property with an option and you turn around and lease the property to another potential buyer. Both of you have the option to purchase the property for a set price within a certain amount of time. Some investors also call this having a note.

When you already have other investment property you might be able to leverage the other property to get a loan to purchase your investments. It has been very popular in the past and not so much in today’s market.

When you have any question about investing in real estate feel free to contact the Settles Team

PLANNING TO START TO INVEST IN REAL ESTATE?

stock investmentGetting started in Real Estate acquisition could be a scary and daunting undertaking. When you break it down into small action steps the elephant in the room can get smaller and smaller.

Before considering any Real Estate acquisition, especially for investment purposes, consider first building your real estate advisory investment team. On our Settles Team website we have some great information listed for experienced or first time Real Estate investors.

After you have your advisory team in place you need to make some crucial decisions.

For example:

  • How to pay for the investment?
  • Are you planning on holding or turning the investments?
  • When you hold the investments who will manage them?
  • How to take title of the property.

 

There are many more questions you should consider before looking and buying any investment property.

You need to take real estate investing serious and you should consider it as a full time job and not a hobby. Make a business plan with goals, action steps, and an exit strategy.

When you are planning to get into Real Estate acquisition for investment purposes contact the Settles Team. We will be happy to help.