Let's Talk About It

I live on Indianapolis' east side and drive to and from downtown Indianapolis via East Washington Street, Michigan Street, New York Street and East 10th Street. My wife spent much of her childhood living around the Willard Park area.

In the recent past, this area was an area that you really didn't want to have to walk through, even during the day due to the drug and gang activity. I have recently been showing some property in this area and I am beginning to see a rebirth of the area

Indianapolis is hosting the Superbowl in 2012 and the City of Indianapolis along with many for profit and non-profit organizations have pledged millions of dollars to improving and revitalizing this area. I have shown several properties recently near Tech High School and I am excited to talk to the neighborhood organizers and residents alike and feel the energy they are feeling.

Just looking at some of the plans and concepts is exciting enough; The NFL quality practice facility that will be built on the Tech campus, the redevelopment of the PR Mallory site and Sherman Commons just to name a few.

Read more about NESCO here and look at the plans and the quality of life plan here. As a Realtor, I would love to be able to say 5 years from now that I had a small part in bringing homeowners back to this area to live, work and play safely.

Contact me if you would like to see what is available and see some of the work already being done.

Yes, we are in a buyer's market when it comes to purchasing real estate in the central Indiana area, we are and typically, always have been.

Yes, there are a large number of foreclosed properties on the market. What you don't see is how quickly the good ones are selling. I work with "regular" buyers and investors. When a decent foreclosure comes on the market, we look, they drag their feet, even a day or two, and when we do put an offer together, we find the home has multiple offers. I have experienced this way too many times.

Come on buyers and investors...where is your sense of urgency? Do you think you are the only one looking at this particular property? If it fits what you are looking for, make an offer now and make a reasonable offer, not one that is low "just to see how the bank responds". You do this now and you missed your opportunity.

Get real and act quickly and act reasonably.

I had one of my lender partners contact me today to let me know he has joined a broker coop that has allowed him to have access to some pretty good mortgage options.

He claims to be able to get a buyer with a credit score as low as 530 financed for a FHA loan.

He also does VA and USDA (Rural Housing) loans. Call me or email me if you have been sitting on the fence because you have been told your credit scores are too low to buy a home today.

First time home buyers, I am waiting word from my lenders about using the tax credit at closing as part of your down payment and closing costs. The way I read the HUD Mortgee Letter, 09-15, the buyer is still required to have 3.5% of their own money for the down payment. The tax rebate monies can be put toward additional down payment and closing costs.

A few weeks ago, HUD said yes you could, then a few hours later, rescinded the statement. They now have a rivised program that should allow you to use the tax credit now, instead of waiting for the money later.

Call me or email for more info.

I love numbers. When I read the startling news that home prices are down almost 20% in March, year over year, I decided to look at our area. Keep in mind that the numbers below are all of Central Indiana, (MIBOR), all homes.

March 2008
     # Sold - 2454
     Avg. Sale Price - $140,547
     Avg. Days on Market - 103

March 2009
     # Sold - 2010
     Avg. Sale Price - $123,098 (-12.4%)
     Avg. Days on Market - 105

Below are the figures for January through March, 2008
     All homes
     # Sold - 6169
     Avg. Sale Price - $136,451
     Avg. Days on Market - 104

     Foreclosures only
     # Sold - 1285 (20.8% of all sales)
     Avg. Sale Price - $60,918
     Avg. Days on Market - 87

     Not Foreclosures
     # Sold - 4884
     Avg. Sale Price - $156,324
     Avg. Days on Market - 107

Here are the figures for January through March, 2009
     All homes
     # Sold - 4940
     Avg. Sale Price - $119,671 (-12.3%)
     Avg. Days on Market - 101

     Foreclosures only
     # Sold - 1325 (26.8% of all sales)
     Avg. Sale Price - $59,773 (-1.9%)
     Avg. Days on Market - 79

     Not Foreclosures
     # Sold - 3615
     Avg. Sale Price - $141,625 (-9.5%)
     Avg. Days on Market - 109

To buy a foreclosed property today, you can expect to pay an average of 88% of the list price. To buy a non-foreclosed home, you can expect to pay an average of 97% of the list price.

Call or email me if you want more information or specific numbers for a certain area or neighborhood.

My congratulations go out to Helio Castroneves for his third win at the Indianapolis Motor Speedway today. Helio, you are a class act and a true role model to young and old alike, race fans and non-race fans. You are an inspiration to me, thank you for being human.

Roger Penske deserves a hand shake as well; 15 times to Victory Lane here.

To all the race fans visiting Indianapolis; you have been terrific this year. I think this is the first year in a long time that I have felt the energy surrounding the month of May that was so prevalent in years past but didn't seem to be there recently.

Just a reminder to anyone who qualifies as a first time home buyer; the $8,000 tax credit is only good until December 1, 2009. That means that you have until then to find a home and close before that date.

Some buyers take that long and longer to find the perfect home for their family and lifestyle, so it is not too early to start searching. The inventory of homes is still good, but is shrinking and prices have stabilized and may even start rising soon. I have noticed that banks are less likely to negotiate on their foreclosed properties. This signals that they believe the market has stabilized and is on the upswing.

Concerned about repairs and how to finance them? I can help you find a home and find a lender who will loan the money for the home and the repairs needed, all in one loan and one payment.

If you wait much longer, you will be kicking yourself later...call or email me now to get going.

I had a very unexpected visitor a few day ago. The visit made my day and I know it was delightful for my visitors.

Just as I was finishing mowing the yard, I noticed a lady walking around the side of the house from the front. She was saying to an unseen companion, "Here he is Aunt Rosie". Since I never had an Aunt Rosie, I was immediately curious as to who the strange people were.

Aunt Rosie and another young lady emerged from around the front of the house and they introduced themselves. Aunt Rosie was the second owner of the home I am currently living in. I found out that Aunt Rosie is 82 years young and the other two ladies were driving her around to some of her former homes. They asked if they could look around outside and take a look at the back yard. Naturally, I invited them in.

Without boring you with the small details of family gatherings they had and certain childhood memories that one of my visitors had of the home, I will tell you that I think I enjoyed the half hour visit just as much as Aunt Rosie. I think the changes and updates I have done to the home were approved of and I think she is at peace knowing that "her" home is being taken care of and is being enjoyed just as much as she enjoyed it some 50 years ago.

Aunt Rosie, if you read this, you are more than welcome to spend as much time here as you like. My home is your home.

That is the question my wife keeps asking me. In fact, she has been asking it for the last 2 years and I don't blame her for wanting to know.

I got back in the real estate business just as the so called boom was ending. I did it, not because I thought I would get rich quick, but because I was active in the business about 10 years ago and loved what I was doing.

When the bottom fell out of the market nationwide, my paychecks have dwindled to a trickle; a trickle that has been barely enough to pay my light bill. If it wasn't for her working, we would be, well, let's just say not living where we are.

Anyway, the real reason for this blog. I have always been optomistic about the market, I have to be to stay in the business. In recent weeks, there has finally been positive medial coverage about real estate. Here is a link to an article that Richard Essex at NBC affiliate, WTHR Channel 13 (I think I recently blogged about another reporter at the same station giving a positive report) did.

Here is a quote from an article on CNNMoney.com by Les Christie:

"Anecdotal evidence indicates that trend (reduction in inventory) may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties. Plus, pricing has become sharper, according to Sherry Chris, the CEO of Better Homes and Gardens Real Estate.

"Overpricing seems to be ending," she said. "Properties are coming onto the market and selling quickly."

And buyers are feeling a little more urgency, she added. In many markets, buyers have not felt any pressure to make an offer. "They said to themselves, 'I don't have to act immediately. It will still be on the market two weeks from now,'" she said."

Part of the Economic Stimulus package signed by President Obama is geared toward helping communities with large numbers of foreclosed properties get them into the hands of willing and able homeowners.

The Indiana Housing and Community Development Assistance (IHCDA) program does just that in conjunction with the Neighborhood Stabilization Program. It provides funding to purchase the home, down payment assistance and closing cost assistance. Here is a brochure that explains a little about the program. There is a web link in the brochure to help you determin if you qualify and if the property you are considering qualifies for the financing.

The purchase must be for owner occupied properties...no investors.