Home Inspections

I wanted to write today about home inspections because they are such and important part buying process. 1) Do NOT ever buy a property (even a brand new one) with out getting a home inspection. 2) Understand what the seller is willing and contractually responsible for repairing. 3) Use an inspector that works well with your Realtor.

1) Do not ever buy a property with out getting a home inspection. The overall expense compared to the possibly long term unknown expenses is so minimal that it is silly not to have one for each real estate transaction that you are associated with in your lifetime. When buying a new home (new construction) it is even more important to have an inspection and much easier to have items repaired when they are found. Most home builders that we work with look at the inspection as a simple "punch list" and repair ALL items with no questions asked.

2) In the market today (a buyers market) many buyers are under the impression that the seller MUST repair all items found in the inspection process. This is absolutely NOT true. Remember that this is a home that is being re-sold NOT a new home.

"If the buyer reasonably believes that the Inspection Report reveals a MAJOR DEFECT with the Property and the Seller is unable or unwilling to remedy the defect to the Buyer's reasonable satisfaction before closing (or at a time otherwise agreed to by the parties), then this Agreement may be terminated by the Buyer or such defect shall be waived by the Buyer and the transaction shall proceed towards closing. Under Indiana law "Defect" means a condition that would have a significant adverse effect on the value of the Property that would significantly shorten or adversely affect the expected normal life of the premises." -taken from the F.C.Tucker Company, Inc. purchase agreement.

Now does this mean that in this market that the buyer should not ask for more? It just simply states that the buyer needs to be aware of what the seller is responsible for.

3) I believe that this is the most important. An inspector that has a relationship with the Realtor of your choice will make the process move along much smoother. I believe this 100%! The inspector that I use will squeeze my clients in at a last minute notice. He will answer questions that I and/or my clients have on the day of the inspection or forever after. He is efficient, responsible, reputable and experienced in his field. His report is accurate and easy to read. The inspector that I prefer my clients to use is Lou Buehler with 1st Choice Home Inspectors. If you ever need an inspection on a home (even if you are not my client) think about using 1st Choice you will not be disappointed.

How to figure your property tax

This is a question that I am asked pretty frequently by people that are purchasing homes. Most of the time it is people that are relocating (I guess the people that live in Indiana already realize that the answer will be blurry) from another part of the country.

Today my goal was to find out that answer specifically so I could post it here. Well look at the time of this post- the work day is over or at least coming to an end- and I still do not have an accurate answer or specific formula.

It was funny the first time I was asked this question I did not have a good answer I felt quite intimidated or not educated on a topic that I felt like I should be educated on. I answered the question of "how are the property taxes figured on this home" with I am not sure but I will get back to you with a good answer. Now, I do not think that is a bad answer and many times due to most real estate transactions being somewhat different from the next I do give that answer and then go find (research, ask my mom, ask a manager, ask my dad) and then get back to the person but on this day, on this topic I came back to that person with really no good answer and that has continued through to today.

On that day, I called my dad (my dad is an appraiser and we talk a lot- another good blog topic) and I asked him the property tax question. The reason why I asked my dad is that is VERY analytical (Type A) and I assumed he would email me some spreadsheet with how to figure property taxes in different parts of Greater Indianapolis and that would be that. I would take that email and forward it on to this client and then come up with some good document to forward on to other clients. Nope! He said that property taxes are figured on assessed value of the property and then multiplied by some figure for that area. This is not the clear cut answer I was looking for. How is that property assessed? When is reassessed? What is that figure that it is multiplied by? How is that figure determined? These were all unanswered questions.

So for today I am no closer to getting a PERFECT formula for property taxes in this area but I will look again tomorrow and let you know what I find.

Current Property Tax News

Thursday, Nov. 20 was Organization Day at the Indiana State House. Organization Day is usually a mostly ceremonially day that officially starts the legislative session with the real business not starting until the first week in January. But the on-going property tax crisis and recent election results set a new tone with the legislature getting a head start on it’s work.

Several bills addressing various property tax matters were introduced and hearings will begin in December instead of January.

To date, there have been three major proposals unveiled to address property taxes.

1)Governor Daniels was first to present a plan that would reduce most homeowners’ bills by about a third. The Governor’s plan calls for the state to take over child welfare and school operating expenses and paying for those with a 1% increase in the sales tax. The plan calls for assessment reform by eliminating township assessors and proposes capping property taxes at 1% for homeowners, 2% for rental property, and 3% for business through a constitutional amendment.

2)A second plan was presented by the State Tax and Financing Policy Commission led by Senator Luke Kenley. The Commission’s plan contains various proposals, many of which are similar to the Governor’s plan, and are expected to reduce homeowners’ property tax bills by nearly 50%.

3)A third plan was recently presented by Representative David Orentlicher that proposes raising both the sales tax and income tax by 1%. Representative Orentlicher’s plan is estimated to reduce property tax bill by 62%.

With three different proposals, and more expected, there is much room for debate and compromise. While there is great hope for bringing meaningful reform, there are also many concerns. Some of these concerns have been avoided so far such as imposing a transfer tax on all real estate transactions as a replacement revenue source. But several concerns still remain, such as the different caps for rental property and a potential new tax on services.

The first public hearing on the Governor’s proposal, HB1001, is scheduled with the House Ways and Means Committee in the House Chambers of the State House at 10 a.m. on Dec. 3.

Property Taxes

This topic is huge! It seems there is always discussion around property taxes in the business that I am in. For good reason since I help people buy and sell homes and part of that home selling or buying thing is the taxes that are paid on that property.

This is my opinion as a professional in the real estate market.

1) DO NOT ever buy or sell a home or decide on a specific area due to the taxes on that property or area. Until Indiana has a better way to assess and re-assess taxes, property taxes on a specific home or area can increase or decrease pretty randomly.

2) When you buy a home you are given property tax dollars at closing from the seller. Many times this amount is a nice chunk of change. Take this money immediately after closing and put it towards the principle of the mortgage or deposit it into your escrow account. DO NOT spend it!

More on both of my opinions later this week.....Stay tuned.

Choosing a Realtor

A REALTOR® can assist homebuyers and sellers with many time-consuming and complicated tasks. Some services include guiding you through the process of selling your home from beginning to end, providing comparable information about the prices at which other properties have sold, and sharing information about your home through the Broker Listing Cooperative™ (BLC™) listing cooperative and on the Internet.

After a home is listed, the REALTOR® will qualify potential buyers to make sure they would be financially able to buy the property, negotiate a sales contract, and help you prepare for a smooth closing of the transaction.

In other words, the benefits of using a REALTOR® are numerous. But how can consumers find the right REALTOR® to meet their personal needs? MIBOR recommends that potential homebuyers and sellers look for an agent that:

Is a member of the local board of REALTORS®

Explains and discloses agency relationships early on in the process, including the role of the agent, and who they are representing.

Advises how to prepare your home for the market .

Shows enthusiasm for your property, listens attentively, instills confidence, operates in a professional manner, and has a complementary personality style to yours.

Has already researched your property in the public records and the BLC™.

Brings data on nearby homes that have sold (or failed to sell) recently.

This information was taken from the Indiana MIBOR site. MIBOR is the professional association representing central Indiana's REALTORS® Founded in 1912, MIBOR was established by 43 charter members and today serves the needs of more than 7,500 members in Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Marion, Montgomery, Morgan, and Shelby counties. In addition to serving these counties, MIBOR also provides a Broker Listing Cooperative™ (BLC™) listing cooperative to REALTORS® in Decatur, Madison and Putnam counties.

Giving Thanks

One of the many things that I like about blogs is that you get an insight to the authors more personal side. So here is something personal about me. If you are reading this you probably already know that I am an only child and I work with my mom. If you did not know that, well now you do. I have been so blessed to be able to work with her on a daily basis and gain so much knowledge from her many years in the Real Estate business. This week that has been a challenge....we are also still mother/daughter as well as business partners and this week some of the mother/daughter stuff got crazy. This is what I wrote to my mom and dad about today.

I want to give Thanks for what we have because we have so much.

I want us to be Thankful for our family because it is OUR family and many don’t have families- sisters, sons, parents, cousins, aunts, daughters, grandparents even if they come late or leave early or decide not to come at all. Even if they say things that we think they should not or if they say too much or not say enough.

I want us to be Thankful for our health because MANY do not have good health but have cancer or sickness or mental illness.

I want us to be Thankful for our homes because many do not have homes even if our homes are not PERFECT.

I want us to be Thankful for the food that we have because many do NOT have food at all.

This is what I want. I just want us to be a family (the family that we have) and be good to each other for at least one day.

-I also wish this for you and your family today (Thanksgiving) and every day. I hope you have a great day!

Find a Lender you Trust, It is Essential

The mortgage market is an ever changing industry that even I find hard to keep up with. When you purchase a new home one of the first steps you should take (after finding a Real Estate agent) is to find a lender you trust. THIS is important!

Here is some information about new lending regulations that came out this week.

There is a strong likelihood that the FNMA and FHLMC loan limits will be temporarily increased to help purchasers buying above the current $417,000 limit. Initially, the limits were to be increased to $650,000. However, Fed Chairman Bernanke indicated support for a temporary increase to $1,000,000.

The Senate is considering a new FHA bill, which could occur by year end. The key elements are:
Down payment of 1.5%.
Increase the loan limit to $271,000.
Streamlined condominium project approvals.

Risk – based pricing. This will provide lower Mortgage Insurance Premiums for lower loan to values and/or higher credit scores.

This information was provided to me by Stan Marrs with Tucker Mortgage, he is someone I trust.

What did I learn today?

Here are 2 things that I learned today-

1) The Blue Chip Business Awards are cool. I attended the Blue Chip awards today (Thank you to Stephanie Williams with Westpoint Financial for inviting me). The Blue Chip Business Award program celebrates those who successfully faced the issues and emerged stronger.

2) I need to start networking again more. It is so fun to meet new people and to reconnect with people that I have not seen for a while.

Ask me for information

One of my goals is to become a real estate consultant not just a real estate agent but someone you can go to for all of your real esate related questions at any time not just when you are buying or selling. I hope this information below is beneficial to you.

Central Indiana October home sales show some areas of improvement

INDIANAPOLIS – While central Indiana pended home sales continue to fall behind last year’s levels, some counties are showing improvement in home sales and less available inventory, according to data compiled by F.C. Tucker Company.

October pended home sales overall were 12.1 percent less than October 2006. Specific county highlights include Boone County, where October pended home sales rose 27.9 percent compared to the same time last year, and Johnson County, where October pended home sales increased 0.6 percent over last year. By comparison, Shelby County posted the most significant drop in pended home sales in October with a 36.2 percent decrease.

“Although there were some bright spots in October, we are hoping we continue to make progress in reaching normal sales levels,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division. “Our above-average home sales success over the past few years is now balancing out, so homeowners are seeing the natural low that comes from such a historic high.”
Year-to-date real estate sales totals for the nine-county area continue to lag somewhat behind 2006 statistics. So far this year, 25,055 homes have been sold compared to 27,115 during the same time last year, down 7.6 percent. For the second straight month, year-to-date sales in Hancock County are above 2006 figures, up 0.8 percent at the end of October.

On an inventory level basis, Morgan County’s inventory balanced out in October at 666 homes, the same number of homes available in October 2006. Shelby County’s available inventory decreased 6.5 percent in October; Marion County’s inventory rose 9.9 percent.

Editor’s Note: All statistics were compiled by F.C. Tucker Company from a report drawn from MIBOR statistics on Nov. 8, 2007.

If you would like this information for any month in the past or would like me to email it directly to you for future months please let me know.

Best Cities to Live Well and Affordably

I just received a good article from Jim Litten, the president of F.C. Tucker. I thought all of you (since most currently live in Greater Indianapolis) would like to see my summary.

This was pulled from REALTOR Magazine Online.

One of the best ways to live well is to choose a hometown that has access to arts, leisure, and entertainment offerings-plus low cost of housing.

Forbes magazine set out to find those kinds of places by studying housing affordability in the nation's 50 largest metros, using the National Association of Home Builders/Wells Fargo Opportunity Index.

Next, it looked at the 2006 Census figures that measure quality of schools and health care, as well as presence of crime and poverty.

Finally, it relied on Sperling's Best Places to identify the best arts and leisure destinations.

The result was a top 10 ranking of most affordable places to live well. Here is the list.

• Minneapolis
• Indianapolis. Based on the NAHB/Wells Fargo housing affordability index, Indianapolis has a higher percentage of homes available to the median-earning household than any other city. Plus, it has a wide range of arts, leisure and sports activities.
• Cincinnati
• St. Louis
• Houston
• Milwaukee
• Dallas
• Pittsburgh
• Columbus, OH
• Atlanta

To me this means that people think it is cool to live in Indianapolis. I do too.

Have a great weekend!

Real Estate Education

Yesterday I took a day long class on Real Estate business systems (part of the reason why I missed posting yesterday but I was not going to make any excuses-see yesterday's (really earlier today's blog)) and it was so great! There are many reasons why I thought it was an interesting class but really I strongly believe that it is important to be continually educating your self through classes, seminars, discussions, books- I mean really the list could go on and on.

Here are some reason why I thought the class was cool. 1) It was fun! The person who was teaching the class was a lively fun person who while we entered the room was singing the song "Fame". 2) I learned a ton. Now will I implement everything I learned from the class today or tomorrow or maybe ever but from every situation my goal is to pull some useful information from it and there sure was a lot of useful information to pull from. 3) This class will make me more organized and a better agent. The class was about refining your system of selling real estate. Our job as agents is to make your job as a buyer or seller as easy and stress free as possible. Meaning WE need to organize, understand and interrupt the endless amount of paperwork that goes along with each transaction so you do not have to.

So, thank you to Joan Lonneman with Joan's Team at F.C. Tucker Haverstick office for teaching the class. It was well worth my time!

"We have a hunger of the mind which asks for knowledge of all around us, and the more we gain, the more is our desire; the more we see, the more we are capable of seeing" - Maria Mitchell

Interested or Committed

Okay, so I missed my first blog posting! When I started this BLOG journey last Friday I told myself that I am committed to writing an entry in my blog on a daily basis (not including weekends) and yesterday I did not accomplish that task. There are a million excuses that I can give you for me not posting but none of that really matters. What matters is that I am committed to doing this to not only grow my business but to educate people on the real estate process and the many aspects that surround that process. So today I am posting TWO entries to make up for yesterday.

See more on being Interested or Committed. Are you committed or interested in your business, your family, your life?

Staging Works!

When you list your home with ME, an Accredited Staging Professional (ASP) Real Estate Agent you expect me to market and sell your house.

When I market and sell your house, you'll be moving....and when you move you'll need to pack....so just pack up early!

BECAUSE....

Staged homes will usually sell for more money and in a quicker amount of time.

Working with an Accredited Staging Professional Real Estate Agent will give you the Staged Home Advantage!

As you can see, I think Staging a property works. If you would like more information about staging your property you can contact me your personal ASP or you can go to Staged Homes the only accredited Staging company in the country.

Room for Improvement

It may sound strange, but did you know that some home renovations may decrease the value of your home? Money magazine suggests avoiding these four renovations at all costs:

A swimming pool. Unless you live in a hot climate, a swimming pool can be a liability, not an assets. The cost of insurance and pool maintenance can be a buyer turnoff. Families with small children especially avoid homes with pools.

Home addition. Sure an addition to your home will add inside space. But how it will look from the outside? Many home additions can look boxy or unnatural with the rest of the house. If you go for an addition, make sure it is well designed.

Trendy finishes. Don't fall for the latest style or trend when it come to renovating. As soon as it's out of style, it will stick out and look bad. Stick to timeless, classic renovations.

A jacuzzi. Nothing beats a good soak after a long day. But not everyone loves a giant tub with multiple jets. Instead try a rain shower head if you want to add some luxury to a bathroom.

The bottom line is if you are thinking about renovating consult a professional real estate agent that you trust sometime during the planning stage to make sure that you will not cut out a segment of your market when you do decide to sell your home. If you need a good agent, I think I know of just the right person.

Today is the Day!

My good friend and business accountability partner Raquel Richardson really is passionate about blogging. Much like I am passionate about guiding people through the Real Estate process, she believes that blogging is really what needs to be done to expand your business in today's market. I will tell you it has taken my a while to get on board but Today is the day!

You see, Raquel is not only my accountability partner but also a very smart Marketing Guru. She owns a company called Silver Square , please take time to not only go to her web site but to go to her blog and sign up today. I find the information in her blogs to be very informative in helping my business grow.

Okay so now about Real Estate. Each day I will give you a tid bit about Real Estate concerning the greater Indianapolis market.

Indianapolis is riding a few trends that are bringing about an early recovery in its real estate market. While Indiana's capital city did join in the housing boom this decade, prices didn't reach the stratosphere. Indianapolis still suffered through the downturn, though: Building permits for new homes dropped 30 percent from their peak in 2005. But the housing market hit bottom earlier here than in most parts of the country -- during the last quarter of 2006. Now, with the local economy poised to grow faster than the national average over the next two years, house prices are projected to post a respectable gain.

Indianapolis's low unemployment rate has made it a destination for people fleeing cities like Fort Wayne, Gary and Terre Haute. It's also relatively cushioned from slowdowns in the national economy because more than a third of its workforce is employed in stable sectors like professional and business services, health care, education, and government. Those white-collar corps also helps boost Indianapolis's median household income to $50,500 a year. Given that you can buy a four-bedroom, 2,000-square-foot home for less than $200,000, this makes the place the nation's most affordable major metro.

Information published by CNNmoney.com and given to me by Stan Marrs with Tucker Mortgage.

I hope you enjoyed my first blog posting and will come back for many more to come!