Distressed Properties

There has been so much in the news about foreclosed properties and I received a good question about how purchasing them worked which I answered in another post but I thought it might be good having it in the main blog area. So if you already read this I apologize! One thing I wanted to add was that surprisingly some of the foreclosed homes out there are not only good deals, they are also in surprisingly good shape. I've seen homes in move-in condition as well as some that just need carpet & paint and were 20-30K below list price.
"Bank owned homes – you make an offer on the property just like any other home but it may take longer to get them to respond to the offer. You can make the offer whatever you wish, it does not have to be list price and they may or may not accept it, may or may not counter the offer. Generally, they will not participate in any type of seller financing, zero down programs and they will not pay closing costs. These properties are also sold “as is” and the banks usually are not willing to make any repairs. However, if a major issue shows up on inspection that would make it difficult for them to sell it to any buyer, they may be more flexible. If not, you can back out of the deal and usually get your earnest money back. Many of the bank owned, distressed homes out there are in surprisingly good shape and need little work.
HUD homes are also a good value in many cases, they are usually listed on your local MLS and you bid on them through a HUD approved broker. (Home Run Realty is a HUD approved broker BTW!) They give 1st dibs to consumers wanting a home vs. investors. In the central Indiana area, HUD is currently offering a $100 down payment program to any owner occupied buyers. This is an awesome deal!
If you qualify for an FHA loan, the down payment has to be a minimum of 3% of sales price (3.5% beginning Oct. 1st, 2008). FHA is generally the best way to go for a 1st time home buyer or anyone without a long and stellar credit history as they are a little more flexible on qualifying guidelines.
Closing costs will vary depending upon the area you are in and the type of loan program you get. A lender will need to provide you with a good faith estimate so you can get a good idea of the expenses there.
Zero down programs are still available until Oct. 1st. Some lenders are saying you must be under contract and approved for the loan by October 1st, others are saying the transaction must be closed by Oct. 1st. That is why there is no time to delay in talking to a lender and looking at properties if you have decent credit but no down payment money saved up!
Short sales can be the most difficult transactions for buyers. Banks will tell sellers they will do a short sale with them and to market the home but then not actually be looking at offers for months. Currently, I have a short sale listing where the offer has been in since July 1st and the bank has not responded to the offer. We have called, emailed, left messages and even in rare instances talked to live human beings but have not been able to get them to even give us a timeline. If you make an offer on a short sale, have a firm idea of your timeframe, how long you are willing to wait before you move on to another property.
If you live in the Central Indiana area, The Home Run Realty Team is ready to help you through the buying maze and remember for BUYERS, our services are FREE. If you do not live in our area, call us and we will still help you find a good agent in your area! You can reach us at 1-866-HOMERUN (866-466-3786) X240.

Can't wait for November!

44% of Americans surveyed by Harris Interactive believe the housing market will improve after the presidential election. The survey also showed a strong indication that there are a lot of buyers out there that have delayed their home purchase but plan to make a move within the next 12-24 months.
Of course, this means that buyers who wait will be competing with everyone else and the market will flip to a seller's market. If you have a stable job and owning a home is in your plans. Don't delay, you will be able to build equity faster if you buy on the low end of the scale rather than wait for the market to go back up. We have had less of a price decline in the Central Indiana area than many other areas because we did not have the huge price run-ups that they had but there are plenty of homes currently on the market with motivated sellers because it has been so stagnant.

Communication dilemma...

I've been busy the past couple of weeks sending out emails and calling everyone who has contacted us the past year or so about buying a home to make them aware of the recent changes in the housing market. Many of our clients in the past 10 years have used the Nehemiah program and otters like it to help them into a home. These down payment assistance programs have been cancelled by the new housing bill effective October 1st. At this point, we don't know if this means the transaction has to close by Oct. 1st or if it is in process by that date that will suffice. So if someone has decent credit (doesn't have to be perfect!) but no downpayment money saved, this may be their only opportunity for quite a while to buy a home. Add to this that it is still a buyer's market,with plenty of homes to choose from and low interest rates-there may not be a better time for many people to get into a home of their own.
Anyway, I hope my emails are not annoying people, I have no desire to SPAM anyone. I know many times when I receive an email I may not read it or I may delete it and then realize I need the info it contains. There is such a short window of time for people to act on this, I think it is important enough to be a little bit of a pest.

"Perfect Storm" for Buyers

The new Housing bill signed into law this week has created a short window of time for buyers to take advantage of a couple of important programs. The Housing bill will take away one of the most important tools buyers have had to get into a home-the down payment assistance programs. Non-profits like Nehemiah, Neighborhood Gold etc have enabled many people who would not have been able to purchase a home to buy a home (and no, most of them DID NOT DEFAULT!). The housing bill removes the down-payment assistance programs for FHA loans as of Oct. 1st, 2008. We don't know yet if that means you have to close by Oct. 1st or be pre-approve, under contract etc. They are also planning to raise the minimum down payment from 3% to 3.5%.
A big positive that came out of the bill is a $7500 tax credit for 1st time buyers or people who have not purchased a home in the last 3 years. This is good on homes closed between April 9, 2008-July 1st, 2009. This could mean if you are due a tax refund of $1000 at the end of the year, with this credit you would get $8500!
So between now and Oct. 1st, buyers can still take advantage of the down payment assistance and get the $7500 tax credit. Add to this the low interest rates, and the high inventory of homes for sale, you get a perfect storm situation for Buyers! If you have been considering purchasing a home, do not delay. You need to call your Realtor today to see about getting pre-approved and to start the home search process. Oct. 1st will be here before we know it. If you are not working with a Realtor, call us at 866-Home Run (866-466-3786) and we would be happy to help.

Welcome to My Relocation Clients

I just had the privilege of working with two wonderful families moving into Indiana. One camefrom California and one from Massachusetts. It is always a pleasure working with nice people but there is a special joy in sharing the city and state you love with newcomers!
Indianapolis is the most affordable housing market in the country which makes us a draw for families interested in more living space for their money but I think we also offer a great quallity of life. There is plenty to do, the city is easy to navigate and the natives are very friendly!

Downtown Indy Pics

These are some pictures I took a couple of weeks ago after attending a seminar at the Etiljorg Museum. Downtown Indianapolis offers so many great views. I am admittedly a rank amatuer when it comes to photography but I'm going to try to keep taking pics and posting them. If you have never been to Indianapolis, maybe you will see something that will inspire a visit! (or even a move!)

Locality

There is a saying in real estate that all markets are local. This is brought home to me frequently these days as we deal with the unrelenting media coverage of the "housing crisis" and all other things dire. I am working with a great couple that were interested in buying a ranch home on the NW side of Indianapolis. We looked at acoupld the first day we went out, and while both were nice, one of the homes had an outstandingly landscaped back yard. My clients wanted to digest what they had seen and meet with their lender again before making any decisions.We talked and I told them that since the home showed really well, I didn't think it would stay on the market long but since the media has drilled it into everyones that it is a "buyer's market" and nothing is selling, I think my clients thought I was exaggerating. We called a couple of days later to schedule a second showing and surprise, the home was under contract. We scheduled showings on six more homes a couple of days later and made an offer on one. It got two other offers the same weekend! We made an offer on their next choice and they got it, for 97% of list.
There are many great properties available now and there are motivated sellers as well as REO and distressed properties but buyers should be aware that depending on the neighborhood and the condition of the home, they are selling.

Why No One Should be Bored in Indy!

I have lived in Indianapolis since 1978 when I moved from my childhood home in Muncie, IN. I loved it from the beginning but there have been so many positive changes that have made it a home to be proud of. Here are just a few of the things I love about Indianapolis :
• The new library addition downtown. It is so open and filled with light, and offers one of the best views of the downtown skyline as well as an impressive mix of new and old architecture. It is a fitting representative of Indianapolis, an appreciation of the old and embracing the best of the new!
• Fall Creek Place- the revitalization of this neighborhood has been a joy to watch. Public and private money and tax incentives have brought a run down, crime ridden neighborhood back to its former glory. Older homes were rehabbed and new homes were built with their exterior architecture designed to blend in with the old.
• Downtown-so much to do! The new Colts stadium, Conseco Fieldhouse, Victory Field, Circle center Mall, White River state Park, The Zoo, The Indiana State Museum, The Eiteljorg Museum. Walking along the canal, enjoying the many festivals at Military Park, walking or riding bikes around the Circle. Visiting one of the great restaurants, walking the War Memorial Plaza.
• Mass Ave.-the theatres, the art galleries, the restaurants and the cool new condos
• The Monon Trail, the new Cultural Trail , the tow path and all the great biking and hiking trails that will take you from one end of the county (and beyond) to the other.
• The Children’s Museum, sometimes more fun for adults without their children! After all, kids tend to have a short attention span and there is so much to see and read and do!
• The Indianapolis Art Museum, with its new addition and fabulous grounds it is a wonderful place to spend an afternoon any time of the year but you can’t miss the Penrod Art Festival in September. Great art, music, food and a perfect Fall Day-what could be better?
• Broadripple Village-long the home of the young and hip and the Baby Boomers who are or were once young and hip too! Stopping in at one of the bars or restaurants with outdoor seating after a run or walk with the pooch on the Monon Trail. Visit one of the unique shops, stop in at the health food store that has been there since the 70”s, feed the ducks along the Canal.
• Meridian Street-driving along the street that divides the East and West sides of the city is a treat. True mansions dating from the early 1900’s including the past and present governors mansions.
• Indiana University-Purdue University at Indianapolis-wow, how this campus has changed since I graduated from there in 1980! I transferred from Ball State University in Muncie to finish my last two years at IUPUI. This was before the Natatorium, the Track and Field Stadium and the rest of the incredible expansion which has made it a full fledged urban campus!
• Concerts at White River State Park and Verizon Music Center, not to mention smaller venues like The Murat & Egyptian Room, The Vogue, The Music Mill and others.
These are just some of the reasons to love living in the Indianapolis area, come visit or come and stay!