August 2013 IAR Monthly Housing Report

(INDIANAPOLIS, IN) - The number of existing, single-family homes sold last month statewide increased 13 percent when compared with August 2012. The median sale price of those 7,566 homes is $125,000 – a 2.9 percent increase from the same month of last year. This is according to the monthly Indiana Real Estate Markets Report today released by the state's REALTORS®.

Other year-over-year, statewide comparisons from the report show -

• The average sale price of homes increased 3 percent to $150,728
• The percent of original list price received increased 2.3 percent to 92.7 percent
• The number of pending home sales increased 6.9 percent to 6,573
• The number of new listings increased 12.4 percent to 11,045

August 2013 was the 26th consecutive month of year-over-year gains in the number of closed home sales, and marked these other consecutive year-over-year gains –

• The median sale price of homes has increased for 21 months
• The average sale price has increased for 20 months
• Sellers received a greater share of their original list price for the 18th month
• The number of pending home sales has increased for 23 months

"The traditional summer selling season ended on a high note in Indiana," said Kevin Kirkpatrick, 2013 President of the Indiana Association of REALTORS®. "The idea that mortgage rates may rise further is likely spurring some of the demand we are now seeing in early September. With the limited inventory we have, buyers should be prepared to first submit their most competitive offers.

"Whether housing continues to be a bright spot in the nation's economy depends on real employment and wage growth, as well as consumer sentiment, which can be swayed by rising gas prices, stock market shifts and global economic happenings," Kirkpatrick concluded.

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

Zestimate, Schmestimate!

What is Zestimate?

 

Zestimate is Zillow.com's "proprietary" home valuation tool. It appears in your home’s page on Zillow.com, whether it is for sale or not.

 

How is my Zestimate Calculated?

 

Zestimate values are calculated from county tax documents, which are public record. Essentially they are your county’s tax assessment of your home.

 

Is Zestimate what my Home is Worth?

 

NO! Your home’s worth is equal to the most someone is willing to pay for it! Market conditions dictate that. For instance, right now home inventory is low in the Indianapolis area, meaning there are fewer homes available relative to home-buyers searching. This means if your home is desirable, more people are going to want it, and of course, value goes up! It’s all about supply and demand.

 

Should I have my Home Re-Assessed to Raise Zestimate?

 

NO! All you will do is raise the property taxes you are paying currently, and what the eventual buyer will have to pay. Taxes are included in mortgage payments. An increase in taxes mean an increase in payment. An increase in payment means higher debt-to-income ratios, meaning less people will be able to get a loan on your home! No bueno!

 

How can I get a Fair Market Value of my Home?

 

Contact me, or another Realtor! We work in this market every day. We know what it is doing, what other homes have been going for, and can base our valuation off of market trends in your specific neighborhood. Pricing a home is as much of an art as it is a science. We consider numbers, and trends, but often times it is more of a feeling, or an instinct.

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

For Sale By Owner

If you want something done right, you have to do it yourself.

I believe that myself. Especially today. Google has made us all a lot smarter. With a few simple searches you can get information on any subject. There are how-to guides, DIY youtube videos. I'm a pretty smart guy. If I can find this expert advise online, I can learn how to do it myself, and save myself the money a so-called expert will charge.

I'm going to tell you about two of my past experiences doing it myself, and explain how that relates to the FSBO process.

Filing my Own Taxes

If you check my resume, I have a Bachelor's Degree in Financial Management. Any self-respecting human with this degree would be shamed to have someone else do their taxes, right?

That's what I thought. I decided to do my own taxes. I did the research, printed out the forms, filled in the paperwork, sent in the proof, and mailed all this to the IRS.

Putting that envelope in the mail, I felt pretty good about myself. I puffed my chest out, thought about the money I saved, and remember thinking, "Who needs an Accountant?"

A few weeks go by, I'm back at the mailbox, and get a letter from the IRS. I open it expecting a confirmation letter saying they received my documents. No! They received my documents, but there was a certain way some of the exemptions I claimed needed to be worded, and I ended up owing a lot more than I expected.

So, I caved, took the letter and what I filed to an accountant, he fixed it, and lowered my tax bill substantially. His service charge was definitely worth more than what I owed.

Representing Myself in Court

So, a few years back I got my driver's license suspended. I was driving a rental car on business, got a speeding ticket while driving it, and the insurance I had at the time wouldn't send in proof to the state, leading to a suspended license.

So I started doing research online, and found out that I would qualify for a hardship license. I contacted an attorney, and they would charge me about $1,000! I thought that was crazy!

It seemed like a simple process, so I decided to do it myself. I again did the research, constructed the court documents, filed them at the courthouse, and scheduled the hearing.

At the hearing, I explained what happened, told the judge I need my license for work, and risked losing my job if I lost my license. Should have been an open and shut case.

However, it seems there were a few different Indiana Law Codes you can petition the court under for this, and of course I picked the wrong one, and they denied my case.

So again, I walked back to the attorney's office with my tail tucked between my legs, and paid him to represent me. He did, got it done for me, and got my license back.

Expert are Experts for a Reason

There is a certain level of expertise people gain from doing the same thing over and over again on a daily basis. Think about the job you do. When you started it, you didn't know all the ins and outs, but as you kept doing it, you encountered different situations that arose, and figured them out. As time went by, you were ready for almost anything.

The same thing is true in real estate. Good Realtors buy and sell homes everyday for other people. We learn what to look for, what can make a deal go south, how to make the most out of a deal. We know the ins and outs. We know how to handle inspection responses, what turns buyers on and off, what upgrades are worth it, and what upgrades aren't. We can save and make you a lot of money.

The fact is that about 85% of FSBO's end up listing with a Realtor, and most that do sell their homes themselves, sell it for a lot less then they would have gotten with a Realtor. I have worked with a few sellers that tried to FSBO before listing with me. One had their home reassessed by the tax appraiser in hopes of getting the Zestimate of their home value on Zillow increased. This did nothing but raise their tax bill on their home, and eliminate buyers who would have otherwise been qualified due to PMI ratios of payments. Another had spent thousands of dollars on upgrades that did next to nothing to increase the value of the home.

Many times I have been able to sell my past FSBO clients' homes for a lot more then what they had it priced as a FSBO, which paid for the commission, and left them with more profit, even with paying extra commission.

Just like my examples above, even though the experts charged a lot of money, it ended up being worth it based on what they saved me in time, money, and hassle.

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

3 Reasons to Buy a Home Now!

1. Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.

2. Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows.

The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3. It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?
Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

Short Sale Basics

The Basics of a Short Sale

I’ve heard it said that “patience is a virtue.” Nowhere is this more true than in a short sale situation. Some banks are better than others, but none really get in a hurry. To further complicate things, if your home has an FHA insured loan, which most are, you not only have to deal with your bank, but also have to get approval through HUD. Quite frankly, paint dries quicker in the rain!

The main point to remember with short sales is to lower your expectations, and the expectations of anyone involved, especially early on. Most short sales take at least 6 months from the time the process is started, to the time where the bank approves the best offer, and sets it up for closing.

The Short Sale Process at the Bank

Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for the short sale approval that they may feel the need to threaten to cancel if they don't get an answer within a specified time period.

That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.

Following is a typical short sale process at the bank:

• Bank acknowledges receipt of the file. This can take 10 days to a month.
• A negotiator is assigned. This can take 30 to 60 days.
• A Broker Price Opinion is ordered. The bank probably will refuse to share the results of the BPO.
• A second negotiator may be assigned. This can take another 30 days.
• The file is sent for review. This can take 2 weeks to 30 days.
• The bank may then request that all parties sign disclosures.
• The bank issues a short sale approval letter.

Short Sale Seller Basics

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

A few examples of a hardship are:

• Unemployment / reduced income
• Divorce
• Medical emergency
• Job transfer out of town
• Bankruptcy
• Death

The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but -- with the exception of Wachovia, which is the best short sale bank in the world -- the basic procedure is similar from bank to bank. The seller's short sale package will most likely consist of:

• Letter of authorization, which lets your agent speak to the bank.
• HUD-1 or preliminary net sheet
• Completed financial statement
• Seller's hardship letter
• 2 years of tax returns
• 2 years of W-2s
• Recent payroll stubs
• Last 2 months of bank statements
• Comparative market analysis or list of recent comparable sales

 

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

Local Market Review: Strong Activity Continues, Second Month Surge in New Listings Delights Buyers

The May 2013 housing data released by MIBOR today shows a continuing increase in closed and pending sales in central Indiana. According to the MIBOR Monthly Indicators Report, the number of closed sales in central Indiana increased 23.7 percent in the three months ending in May 2013 compared to the same period of 2012. Closed sales rose a dramatic 30.6 percent in in May alone when compared to May of last year.  Pending sales are keeping up by increasing by 24.1 percent for the month of May and 18.9 percent in the quarterly comparison.  The much-watched new listings number jumped for the second month in a row. New listings increased by 15.6 percent in May and 5.6 percent for the three months ending in May.

 

Prices performed better with median sales price up 2.3 percent for the quarter, and up 4.2 for the month of May.  Average sales price was a bit stronger still; 4.5 percent in May and 3.0 percent for the quarter ending in May. The current average sales price in central Indiana is $172,322; median sales price is $138,000. Consistent with last month’s news, months of inventory stands at 5.6 months.

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home sellers and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.

Saint Mom

Thank God for Moms! I especially thank God for my mom! That woman should be up for saint-hood by now! She raised me, my 2 brothers, and 3 sisters to be somewhat successful and functioning members of society. That is a miracle by any definition of the word!

Mom told me a lot of things growing up, a lot of which I ignored and forgot because I thought I knew better. What I will always remember is what she showed us.

Mom showed us the true meaning of unconditional love. No matter what mistakes we made growing up, we always knew that mom would be there. She never gave up on us, even if we had given up on ourselves.

She showed us it is better to give than to receive. She was always there when we needed her to be, no matter the inconvenience. She's helped us out of many pinches and tight spots in our lives.

She showed us that working hard, having faith, and doing the right thing is more rewarding than doing what you want to do, and in the end, gives you what you really want.

She showed us that life isn't about getting, it is about giving.

Happy Mothers Day!

Avery Garrett is a top Indianapolis Realtor serving the Indianapolis Metropolitan area from Coldwell Banker Kaiser. Avery is Zillow.com Premium 5 Star Agent, and is a Member of the Metroplitan Indianapolis Board of Realtors. Contact Avery for a complimentary, no obligation, Market Analysis of your home at 317-721-2274, or SoldByAvery@gmail.com. See Avery's reviews and search for a home at www.SoldByAvery.net.

Avery is proud to help home seller and home buyers in the following communities: Carmel, Fishers, Noblesville, Westfield, Cicero, Sheridan, Lebanon, Zionsville, Brownsburg, Avon, Danville, Plainfield, Mooresville, Camby, Greenwood, Bargersville, Martinsville, Franklin, Shelbyville, Southport, Beech Grove, New Palestine, Greenfield, Lawrence, Greensburg, Nashville and beyond.