Every week we pull information for the Central Indiana real estate market and look at the last weekâs 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.
Tag Archives: Real Estate
Marion County Indiana new rental proposals
Be aware Proposal 195Â which is being introduced to create a Marion County Indiana landlord registry. Landlords have to re-resister themselves on an annual basis as a landlord. The reason given for this registry is that many properties in disrepair and vacant are owned by investors. About 50% or more of them are owned by owner occupants who no longer can pay for their mortgage.
DONâT BECOME A VICTIM AFTER A STORM
Many here in the United State have received a beating by mother nature at some time or other. Some in the path of straight line winds, others tornadoes, and some face flooding.
Let me throw out a warning.
After every storm there will be âhandyman storm chasersâ who knock on your door. Many are not licensed, bonded, and insured in your state. Be aware of these scammers. They are out to take your money leaving you high and dry.
Some of the possible red flags that a contractor is not a reputable contractor are
- Driving a truck with an out of state license
- Cannot give local referrals to call
- âforgotâ their contractors licenses at home
Some questions you should ask for are:
- How long have you been in business?
- Please provide me proof of insurance, bonding, and contractors licenses
- Please give me 72 hours to go over your written contract with my adviser
Donât do anything verbally or through a handshake. Put EVERYTHING in writing!
The best way to find a reputable contractor contract
- your Insurance Company,
- your local REALTOR,
- your State Licensing Agency,
- local Home Builders Association or
- through the National Association Of The Remodeling Industry (NARI).
All of them are glad to help out.
Why is my house not selling?
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 neighborâs 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 youâre 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 letâs put the more âreasonable pricedâ 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 youâre 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.
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.
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.
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.
Demystifying what a Real Estate Agent does in a real estate transaction
âWhat does a real estate agent doâ 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)Â Â Â Â Â 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)Â Â Â Â Â That a Buyer will pay more than the offered purchase price for the Property.
c)Â Â Â Â Â That a Seller will accept less than the listed price for the Property.
d)Â Â Â Â Â Other terms that would create a contractual advantage for one party over another party.
e)Â Â Â Â Â 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 buyerâs 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)Â â 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 â an objective method for determining a home’s value, where a CMA is subjective.
- MARKETINGÂ â Marketing the real property to prospective buyers.
- Facilitating a Purchase â guiding a buyer through the process.
- Facilitating a Sale â guiding a seller through selling process.
- FSBO document preparation â preparing necessary paperwork for “For Sale By Owner” sellers.
- Real estate appraisal â in most states. Other states a broker has to be licensed as an appraiser.
- Home Selling Kits â 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 â In some states the broker has to hold a Property Management certification.
- Exchanging property.
- Auctioning property â 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.
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-Â Â Â Â Â 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 âfeels’ 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-
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.
In 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 âbringing your property up to codeâ 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.
Another 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 âpaid in full letterâ 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.