Indianapolis/Fishers Real Estate

There is quite a bit of controversy on the Cap and Trade being discussed; this is more than just the regulation of pollution emitted into the atmosphere.  Their is language being discussed around cap and trade for things that we use daily like gas, electric, etc.  I’m not here to debate the issue but to give you some ideas on how it might be used in a conversation about Fishers Real Estate.

We recently had some folks in from Langdon Mortgage Company to talk with the Marchant Team.  Here are some tidbits I picked up:

• You can borrow 5% over the appraised value for energy efficient items such as insulation, windows or furnace for example. 
• You can borrow an additional $2,500 over the above for weatherization items.
• If you spent $5,000 for a new furnance/air conditioner; it would cost you about $28.00 more a month and chances are you would save that in utility costs. 

This is important as we think about both “being green” and about cap and trade.  Reducing the consumption of utilities is going to become more important over time.  This EEM (Energy Efficient Mortgage) isn’t available to JUST new home buyers, exisiting home owners can put the purchase of these items in their mortgage as well.

Want to know more?  Send me a quick email and I will put you in touch with the experts at Langdon Mortgage to see if the program is right for you!

I like to update the Fishers homes for sale statistic in each blog, so as of today there are 677 homes for sale and 136 are under $150,000. 

Search homes for sale in Fishers by Neighborhood

Other Northside Blogs (Carmel, Noblesville, and Geist)

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

I am seeing a lot of Fishers Homeowners in the $130,000 to $175,000 price starting to look for a “move up” home.  They have spent maybe two or three years and are ready to sell their home due to the strong first time buyer’s market for their home.

It was of course, easier when they bought that first home and knew exactly when their lease would be up to time the purchase of their new home perfectly.  It is much harder to determine when their current home will sell, so the option of a first right is being utilized more frequently.

A first right or contingency offer is when you agree to terms (purchase price, closing costs, possession, etc) on the new home, but the purchase agreement does not go into effect until the buyer sells their current home. 

The benefits to the buyer are that they have some valuable time to get their home on the market and sell it to avoid double mortgage payments.  The downside to the buyer is that they may end up taking less for their current home to be able to execute the first right and they will probably pay a little extra to get the home they want.

The benefits to the seller are that they have a willing buyer and if their realtor does their job, will be able to give them a good idea of when the buyers home may sell.  Another advantage is that the seller will probably get a better price by allowing the buyer extra time.  The downside for the seller is that their home will probably not show much after the first right is entered into the system if at all.  As realtors, we often encourage our clients to not select a home with a first right because their is already another party interested in the home.

Alternatives to a first right that avoids the downsides might be an extended closing date.  Normally a home closes in about 30 days; but a delayed closing could go out 60 days.  The buyer then has quite a bit of time to list and sell their home.  If they wrote a purchase agreement today (June 15th) and put August 15th close day on the Purchase Agreement; their first payment on the new home would not be due until October 1, 2009.  You skip a month when you purchase a new home.  This might give the buyer just enough “cushion” to feel comfortable moving ahead allowing them to negotiate more on the new home.

The seller may like this if they need time to pack or find their next home.  So, it can be a win-win for all the parties.

If you would like these concepts explained in greater detail, be sure to give your Fishers Realtor a call or email me directly.  Also be sure to check out other real estate terms I have explained to understand the real estate market better.

Search homes for sale in Fishers by Neighborhood

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

Appraised values of homes are definitely a barrier to a successful close in today’s market.  While the Fishers Indiana Real Estate Market remains strong, there are pockets of declining values in various Fishers neighborhoods.  Appraisers are only going back three months currently and picking up those declining values in appraising current sales. 

I want to talk about the definitions of Assessed Values and Appraised Values and how they both differ from a CMA (Competitive Market Analysis).  An Assessed value is the value put on your home by the town’s assessor and it is used for tax purposes.  It is much more global in nature.  The Assessor will not enter any homes and will not consider any updates or lot premiums.  They typically use a much more global look at the properties.  In many cases, they are not updated on any regular basis.

An Assessed value “may be” close to the market value of a home if it is in a Fishers neighborhood with very similar homes such as Woodberry or Brooks Chase.  However, it is not of much value where there are a variety of homes and lot premiums or where there are older homes that may have updates.

Appraisals are performed by a certified appraiser; they most likely will enter the home.  They will notice updates and will give extra $$ for premium items such as additional bedrooms, larger garages or nicer lots.  Typically, they will not give what a buyer would pay for those premiums.  For example, a third car garage will only get you about $2,500 from an Appraisor or a 1/4 acre lot to a 1/2 acre lot will get you an additional $2,500.  However a buyer will often pay more for that third car or larger lot.

When you have a very unique home; sometimes it is worth determining the value from an appraiser prior to listing the home.

I have seen transactions this year where the appraisal has come in less than the agreed upon purchase price; so appraisals ARE coming in low.  There are various solutions I have seen to this problem; let me know if you want more details on those options.

A competitive market analysis (CMA) is performed by a Licened Professional, in this case a Fishers Real Estate Agent.  I will enter your Fishers home and do a thorough walk through and ask you questions about various updates.  One of the major differences for a CMA is that I will consider the competition as well as the pended and solds in the area.  In addition I will look at the absorption rate.  I do this to price a home and to determine the validity of the sale price of the home when I am representing a buyer.  This extensive homework can be used to “argue” the appraisal sometimes so be sure it is done when you list your Fishers home.

I would like to thank one of my readers for giving me this post idea; he had asked me to explain this and hopefully this is a bit more thorough than the email I sent.  I encourage all of my readers to ask as many questions as you can to me; I want to be your resource!

Search homes for sale in Fishers by Neighborhood

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

Several months ago, just about anyone breathing could get a loan to buy a home in the Fishers Real Estate market.  Fast forward to today and you might have to give up your first born to get that same loan.  It is definitely harder to get a loan than it was, but there are things you can do to help improve your chances.  If you have credit score issues, you can have your credit repaired in the next six months and still cash in on the $8,000 first time buyer credit.

First let’s identify what a FICO score is.  It is an abbreviation for Fair Issac Company.  It is a measure of borrowers credit risk commonly used by mortgage people when determining loan worthiness.  It is typically between 300 and 850.  It not only determines whether you get the loan, but often will also dictate the terms of the loan.

Last year a good credit score was between 680 and 720; fast forward to now and it really needs to be in the mid 700’s. 

The score is comprised using the length of your credit history, your payment history, the types of credit you use, the amount you owe and the amount of new credit you have obtained.  These things work together to determine your FICO score.

If your credit score is low; consider doing the following things:

1. Check your credit at https://www.annualcreditreport.com/cra/index.jsp ; this will allow you to check your credit for free; if you want your score there is a nominal charge of around $9.00
2. Fix any errors as quickly as you can by providing the needed documentation to the requesting party.
3. Reduce what you owe, pay on time and do not apply for credit you do not need.

Also, be aware!  Credit card company’s are reducing limits of lots of people, even those with high scores.  It is in the fine print.  If you have a large balance, watch your bill.  If you had a limit of $20,000 and you have a balance of $15,000; they could drop you to $5,000 limit and start adding fees and penalties to your bill. 

Most of this information was provided by Jeff Wills, who works for STAR Financial Bank at 116th and Allisonville.  He is very knowledable about the lending industry and provided insight into the FICO score for me.

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

What does it take to be an expert in buying or selling distressed properties?  This Fishers Real Estate Team has developed not only an expertise, but are witnessing some incredible deals and also some heart wrenching stories.

First let’s identify what a distressed property is.  They can be bank owned, or REO (Real Estate Owned) or Pre-Foreclosure/Short Sale.  They are properties that for one reason or another cannot be sold for their current market value or the amount owed on the properties.  They can happen due to an illness, due a mismanagement of funds, due to a bankruptcy, or for any number of reasons and they are happening more frequently around the Indianapolis Real Estate Market and in the Fishers Real Estate Market as well.  My team currently has a property in the Indianapolis market, two in Fishers and one in Noblesville under contract as a distressed property.  This Fishers Realtor also has one on the market currently in the Moorings that is a short sale. 

The upside of a distressed property is that you will probably get it for a good deal.  You will most certainly have equity at the closing table.  I recently wrote about the Top 10 Short Sales in Fishers and we actually bid on one of those; there were 8 offers and we did not get that one.  We subsequently bid on another one and are currently under contract with that one.  My buyer got the property for $50,000 less than the current assessed value.  We know how to find them and we know how to get to the closing table.  But, it is not without a lot of patience, time, and dialogue with the other agent and the banks involved.  In all distress properties, there is a bank involved.  There may be a seller, but there is a bank.  Banks are on their time tables and have their guidelines.  Banks require documentation from the seller as well as professional opinions on what the home is worth.  So, if you have to be in a home quickly, this is probably not the best choice for you.  But if you are buying it as an investment or can wait to close the transaction, this could be a great option for you. 

There may be some bright news on the horizon; House Bill 1359 does give us the following language:

Requires a creditor, a mortgage servicer or an agent of a creditor to acknowledge a written offer made in connection with a proposed short sale of property that is subject to a mortgage transaction that is at least 60 days delinquent. Provides that the acknowledgment must be provided not later than 10 business days after the date of the offer. Requires the creditor, servicer or agent to accept or reject the short sale offer not later than 30 business days after receipt of the offer. 

If they do not follow these guidelines; they are fined $2,000.  I am not sure that is enough to change their current behavior, but it is a step in the right direction.

Contact any member of our Fishers Real Estate Team and we’ll go over the process and see what inventory in the distressed properties are available.

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

As January 2009 begins, this Fishers and surrounding areas Real Estate Agent is seeing the market begin to change.  In the last seven days, I have received a dozen calls about either buying or selling real estate.  Most of them have been from buyers!  This is a good sign for our housing market in Fishers Indiana.  I’m so glad I took the time to relax and enjoy my family and the holidays during December, because it looks like busy is back.

I met with a first time home buyer on Wednesday evening.  I love going over the home buying process with a first time home buyer.  There are so many things to know when you initially start that search for a home.  One of the first things a buyer needs to do is call a lender and start the mortgage process.  One of the first things to ask for is a Good Faith Estimate.  This document is an estimate of the closing costs that a buyer will be charged when purchasing their home.  This estimate must be provided within three days of making an application with a lender, but often a lender will provide it if you just ask.  This gives the buyer the opportunity to compare lenders and also to begin saving or maybe to consider asking the seller to assist with paying these costs.  You will typically see an fee for an appraisal, a survey, document prep and underwriting, etc. In addition you will see the accruals and prepaids that will also need to be paid at the time of closing.  It is a comprehensive list of costs associated in the home buying process.  It is just an “Estimate”; so do keep that in mind.

As your Fishers and Indianapolis Real Estate Agent, I know the average amount for the various items on a good faith and can help you understand the differences in those costs versus the differences in rates that are quoted.  The lowest rate isn’t always the best program, just as the lowest closing costs aren’t always the best programs.  Use me to help you decide what makes the most sense for you! 

I would like to take this opportunity to promote some of the lenders I use in the Fishers Real Estate area; they are in no particular order and I’d encourage you to call any of them as you begin the process.

Cori Drudge with Stonegate Mortgage

Warren Harling with MetLife Home Loans

Lynne Coverdale with Stonegate Mortgage

I encourage you to begin the process if you are thinking about buying a home.  The “perfect storm” is brewing with interest rates very low and the sellers more motivated than ever.  There are many other reasons to buy now, call me and I’ll give you one worth $7,500! And don’t forget every month on the last Saturday we hold a First Time Buyer’s Class in Fishers; but you must register.  We look forward to working with you soon.

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775

When a seller puts their Fishers home on the market to sell; the Fishers Real Estate Agent better know the absorption rate.  Kristal Kraft writes a great explanation of Absorption Rate.  Basically it tells us how much inventory that looks like your home is currently on the market and how often homes like yours sell.  It gives us an idea of how long your home may be on the market and more importantly helps us determine the best price for your Fishers home.

Here is an example for Sunblest Farms located at 116th and Holland and also the Sunblest across from the Fishers Ice Rink.  If we look at the number of homes that have sold since January 1, 2008 to current, we see that 58 homes have sold.  That means that about five homes per month sell.  (58 homes divided by 12 months).  There are currently 35 homes on the active market or pending (they have not sold yet).  If 35 are on the market and only 5 sell per month we have a seven month inventory of homes in Sunblest Farms.  (35 homes on the market divided by 5 homes that sell each month).  So if you are planning to put your Sunblest Home in the active Fishers Real Estate Market this is good information to know. 

Of course there is more to pricing than just an absorption rate but it gives the more educated seller and the Fishers Real Estate agent information that can be used to begin the process. 

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775