How to buy and sell a home in today’s market

Almost every day I find myself in a conversation with someone who asks: “How’s the real estate market?” My answer, frankly, is always the same: “I’m glad you asked because it’s a great time to buy or sell a home!” Lately, that answer has been met by surprise, even shock!

                       

After I tell that individual why it’s a great time to be in real estate, they realize the truth: as long as you are properly represented by a real estate agent who fully understands the current market, and you’re prepared to follow their advice, your experience will be a successful one!

So back to the original question: what can you do to successfully buy or sell a home in today’s market?

The best thing you can do is realize is that the market has changed.

A lot has happened since the boom days. We’ve seen a recession, which included a rise in unemployment, a drop in consumerism, and an entire realignment of the real estate and mortgage industries. Distressed properties (Foreclosure, Short Sale and Real Estate Owned or REO) dominated many local markets and clogged inventory, resulting in poorly priced homes sitting on the market for longer than expected. 

Buyers gained additional negotiating powers, and sellers have been creative about concessions in order to sell faster. While it’s not necessarily the right time to buy for everyone, I still find homeowners, or those seeking to own a home, are confusing market conditions with market opportunities. The market is what you make of it and how you approach the process of buying or selling a home.

Buying a home in 2011Buying a home is one of the biggest investments many families make, and you shouldn’t just jump into without considering a few factors:

Know your purchasing power. Lenders have wisened upsince the days when they were handing out loans without proof of income. Before you even start your home search today you should get pre-approved by a trusted lending professional.

Find a knowledgeable agent. In today’s market, you must hire someone who is knowledgeable, professional and ready to negotiate on your behalf. Interview a few agents before you decide, ask them what services they provide as a buyers agent, and what you can expect when you work with them exclusively.


Rick Patton is rated in the top 3% of real estate agents in Central Indiana.   Reach him at 317-702-2200   or   rick@IndianaRealtyOne.com 

A Market Price Targeted To Sell Your Listed Home

Keep in mind your house may be in really great shape, with new carpet, freshly painted, very well landscaped and very eye appealing.   However, none of this matters if your home is listed at the "wrong" price.

Determining your asking price is critical in that a price that starts higher than the market will keep people from even looking at your home.   The idea you can overprice and just cut prices later is not a good strategy.   Potential buyers will ignore your home completely and then the home stays on the market too long, causing buyers to think you are a desperate seller.  This leads to the idea by buyers that there is even more room for negotiation.

How do  you determine a price that will interest buyers yet get you a true market price for your home?

Understand your local market -- Do Research

Nationwide prices are back to 2003 levels thus basing your selling price on what you paid for the home is not normally a good approach.   Check local market pricing as to what recently sold homes in your area were listed for and for which they ultimately sold.

How many homes are for sale in your area?

Check the price points and conditions of homes in your area.   A knowledgeable real estate agent can provide this information with additional insights into pricing your home.  Check the agent's track record and you will see how well he or she is able to be helpful and perform the necessary steps to get your home the correct exposure.  Today, the internet exposure is as important as many of the traditional ways to market your home.  Many real estate agents do not understand the various ways to market your home on the internet.

A home inspection can be helpful ahead of time

Home inspectors can provide what a prospective buyer might look for in needed repairs or areas of concern.

Be realistic!

Rick Patton at Indiana Realty One is in the top 5% of real estate agents in Central Indiana for listing and selling homes in a reasonable time period.   Give him a call or email for information regarding your home.

Rick Patton   (317) 702-2200    Rick@IndianaRealtyOne.com

 

NO QUESTION IS TOO SILLY

VIRGIN Atlantic airline staff have revealed the most bizarre questions asked by passengers on flights, with “Can you turn the engines down, they’re too noisy!” topping the list.

In a survey of 3000 Virgin Atlantic cabin crew, common questions from passengers ranged from “Please can the Captain stop the turbulence?” to “Is there a McDonald’s on board?” It seems many passengers get confused about the delicacies of pressurized cabins, with many asking if windows can be opened. They also overestimate what it’s like on a plane, and have been known to ask for directions to the showers, and where the children’s playroom is.

Crew members also revealed they have been asked to book in massages for Barbie dolls, entertain rowdy children, and even help find a missing glass eye.

I found that to be an interesting news story that I read recently. Have you ever felt frustrated that people are asking you too many questions about stuff you think they should know? We all have. The key is this, as far as I can tell, the more you get people thinking about, or talking about your product, the better it is for you. I get many people who are embarrassed to ask what they consider to be basic questions, but I am always quick to encourage them to ask – what’s to say it’s a silly question.

I challenge you this week to ask more questions and encourage those you engage in discussion to ask as many questions as they can – who knows, it might just be a successful strategy. Remember you heard it first from me (well sort of!)

Thanks to Neil Richmund

http://neilrichmund.com/no-question-is-a-silly-question-really/

Summer Energy Saving Tips

SUMMER 2011 ENERGY SAVINGS TIPS

Summer brings certain things to mind: BBQ’s, festivals, parades, camping, fishing, swimming – any way to enjoy the outdoors and the beautiful weather summer offers across the country. But, summer also means hot weather, which can run up your energy bill. To keep sky-rocketing energy costs from ruining your fun summer plans, follow these easy guidelines below to keep your energy costs down, and your spirits up!

10 Quick & Easy Energy-Saving Summer Tips

1. Limit fan use to only when you are in the room with them. Ceiling, oscillating and standing fans give you the feeling of being cooler without actually changing the temperature of the air.
2. Use compact fluorescents, which burn cooler than regular bulbs. Not only will you save year-round, up to $40 over the life of the bulb, and in the summer you'll reduce the heat generated into a room.
3. Use evaporative coolers and whole-house fans. Both are cost-effective methods of keeping a house cool without spending a lot.
4. If you have central air conditioning, keep your thermostat at 78 degrees. Each degree above 78 can knock off an additional six to seven percent off your cooling costs.
5. Get rid of hot air. Use an exhaust fan to blow hot air out of your kitchen while you’re cooking. The savings on your cooling costs far outweigh the electricity used by the fan. Also, take lukewarm showers and baths to avoid humid air, which holds more heat.
6. Turn your water heater down to 120 degrees. This saves you money and is a safety measure if you have children in the house.
7. Hold off on doing laundry and dishwashing until nighttime to avoid generating extra heat in your home. Also, consider taking advantage of the warmer air and dry your laundry outside.
8. If you have a pool, turn off your filter overnight when the pool is not in use.
9. Use your microwave or smaller, countertop appliances for cooking instead of the oven or stove.
10. Close blinds, drapes and shades during the hottest part of the day. This keeps the strong sunlight from heating your home.

Bonus Summer Safety Tips!

• When possible, avoid outdoor activities during midday, when the sun's rays are strongest.
• Keep perishable food cool on longer trips. When outside, keep the cooler in the shade and continue to replenish the ice!
• Check for hazards in the yard during thunderstorms. Secure any unstable items on your house or in your yard that could be blown away or knocked over.

Keep Cool This Summer

Keep Cool & Beat the Heat

No matter what your personal policy is on how often or how strongly to run your air conditioner, chances are there will be times when the only thing you are in control of cooling is yourself.

"Air conditioning" your person is worth noting, because the more you can do that, the higher you will be able to set your thermostat while still maintaining some level of comfort. Check out these personal cooling tips and run your AC less:

• Wearing light colored clothing which does not absorb the sunlight can help you stay cooler
• Taking a quick 10 minute cool shower can also do wonders and help you stay cool for hours
• Keep kids cool by filling a backyard wading pool, or letting them run through the sprinkler
• Staying hydrated with plenty of cool water is also essential in the battle against summer heat
• If you are spending time in an environment that is casual enough, wearing your shirt slightly damp or braiding hair when it is still wet are both excellent ways to stay one step ahead of the heat

Cool down with these money saving AC tips

Air Conditioner

We all like to be comfortable, and having air conditioning in our home can be a big relief as summer temperatures climb. However, running the air conditioning can get expensive and many search for ways to beat the heat without going broke on energy bills.

One of the first things to do is make sure your air conditioner is operating as efficiently as possible. If you are at all in the market to get a new air conditioner, it might be time to take the plunge. Older models of air conditioners are likely running on an energy efficiency much lower than the current recommended SEER (Seasonal Energy Efficiency Ratio) of 13 or higher. Older models usually run at around a 10 SEER, while new models are currently manufactured with a SEER rating of up to 19. The higher the SEER rating the more efficient your AC will be, which translates into both savings and summer comfort for you. Estimates suggest that running newer model air conditioners saves 30-40% on cooling costs, which could offset the initial cost of replacing your current air conditioner sooner than you think. However, if that is not possible, at least be sure the air conditioner you currently have is running at its best. To do this, make sure the unit and filters are cleaned out at the beginning of the season. In order to keep your air conditioner running optimally all summer, continue to replace or clean the filter at least once a month.

Fan Yourself

The next thing to consider is your personal priorities when it comes to comfort versus saving money. It was once suggested that keeping the AC running was the most efficient, but with appliances in general being more energy efficient than they once were, this is no longer the case. Fans will use up far less energy than air conditioning, so when you can get by with using them exclusively, or along with your air conditioner set at a higher temperature, you will save money.

Ceiling fans run with the air moving downward (usually counter clockwise) is the most efficient for creating a wind chill factor in your home and helping you stay more comfortable. However, when using ceiling and other fans, it is important to remember to turn them off when you leave a room. Unlike air conditioners, fans do not actually cool the air, but they will cool the surface area of your skin, making you feel more comfortable.

Time It Right

For those who don't want to worry about turning the air conditioner up and down or on and off using a timer is a good way to balance value and comfort. By setting the temperature on your air conditioner 10 degrees higher while you sleep or during your work day you can save 5-15% on your energy bill. Most newer models of air conditioners have a built in programmable thermostat, and even if your air conditioner doesn't have this feature, it is worthwhile to replace the thermostat, even if you can't replace your whole unit.

Maintenance

In addition to using fans there are also some other tactics that can make not running the air conditioner bearable, especially on those borderline days. One of the things you can do is limit the sunlight that is going through your windows or shining directly on your outside compressor unit. By drawing the drapes before the full sun hits and opening windows on cool nights, you allow cold air to circulate in your home you can keep cool without the AC for longer periods of time.

Shading your outside condenser unit and rinsing the outside coils can also help make your air conditioner run up to 10% better. A small portable gazebo placed over the unit may be enough to do the trick. You don't want to share your condenser so thoroughly that you cut off the flow of air, as that would be counter-productive. In fact, be sure to keep the grass around your condenser trimmed and the area free of debris in order to achieve the best efficiency.

Staying cool, with or without the AC, is a balancing act, but it's definitely something that is attainable without causing you to go broke.

Searching for the Correct Contractor

Summer is a good time to complete home improvement or repair projects.  The following is a brief list of things to look for in choosing a contractor.

Decide exactly what you would like to have done, gather an idea of how you want the completed project to look, with magazine pictures, or maybe photos of friends homes that are similar.  Pick the type of materials and then begin to contact a possible contractor.

Finding a dependable contractor can be a chore if you let it.  Talk to friends, check out work possibly being done in your area, check with local building officials for suggestions and or check with credibility lists online.   Certainly your REALTOR should have a few contractors they can recommend, that other clients have used,

• Multiple estimates give you a good idea of how various contractors price projects.  Remember the lowest bid may not always be a bargain.  If the bids are far apart, get more bids.

• Check contractors past jobs and maybe even check past permits to see if there is any litigation history.   Possible complaints might show up also.

• This one is critical in my mind.  Make sure their present workload allows them to start on time and complete the work in a reasonable time.  Ask them specifically those questions.

• If the contractor offers a finance package, have your lawyer or trusted adviser review the financial documents.

• Ask for and check a few references and always be sure to require a detailed written contract that includes a starting and ending date.

• Ask for at least three references from former customers and check them. Verify that the contractor has the appropriate level of worker’s compensation and liability insurance. 

Pre-Approving a Mortgage Becomes a Huge Advantage in Home Searches

Connecting with a knowledgeable, qualified lender that is dedicated to clients is very important.  We can help suggest lenders that have earned our trust over the years.   These professional lenders will help review your financial position and help you determine a price that suits your capabilities to pay in a comfortable position.


The lender will offer you the various alternatives and help you determine the best fit to your specific path to your home purchase.  


Many advantages are yours in the home buying process with a pre-approved mortgage:

1.  You get to select your most advantageous loan package without any time pressures   


2.  Advance knowledge of what your monthly payments will be is very helpful


3.  This helps save time by looking at homes within your budget

4.  Sellers feel more comfortable knowing you already have your financial package in order  

5.  Pre-approving in almost all cases does not cost you any money

We at Indiana Realty One are always dedicated to helping you the buyer with the professionals that you can have confidence in for coaching you in the mortgage process.

Rick Patton Owner,  Arnie Goldberg VP Marketing... give us a call or an email for more details   (317) 819-8585     rick@IndianaRealtyOne.com    arnie@IndianaRealtyOne.com

Area Sales Are Down.. Yet We Are Selling Homes In 14 Days

Summer Stats are in and showing area sales down by a big percentage over last year; however we at Indiana Realty One are selling homes for our clients in very reasonable times.  In fact we sold two homes recently within the first fourteen days from the listing date.

Keep in mind interest rates are lower than they have been in over 50 years, and sellers are very motivated, so if looking to purchase a home or invest in a home as an investor, give us a call today.


Even though media reports are negative talking about a tumultuous and volatile housing market, we at Indiana Realty One are preparing more homes for the market than previous years, and the homes are selling in record times.  This shows there is a good demand for fairly priced homes and aggressively marketed homes.

In today’s world, a real estate professional is just nice to have around at the click of your computer.

    

     If you would like to know what prices houses are selling for in your area go to www.IndianaRealtyOne.com and click on market snapshot.  View similar homes that recently sold or are currently for sale in your neighborhood.

Click to reach our website and click on Market Snapshot

Arnie Goldberg VP Marketing,   Rick Patton Owner    arnie@IndianaRealtyOne.com   (317) 660-5191

KNOWING WHERE TO BEGIN - FIRST TIME HOME BUYERS

The purpose of this blog post is to provide first time home buyers with useful information.

Personal Experience – our first home purchase (Arnie & Diane)

We bought our first home in 1967 after returning from the Army. We were very excited to finally have our own home for our family.  We were a little scared and had the following questions. 

• ·         How can I be sure that I can afford this home?
• ·         What’s my credit score?
• ·         What’s a first time home buyer loan?
• ·         How does it work?
• ·         Who can I turn to for reliable help?

     We were 26 and 23 years old, married two and half years with our baby girl a year old.   I had a good job but we had no money backup in case of situations.

     At least we did understood that renting just added to the landlord’s own weath.  We realized we could be making our own home payment, not that of the landlord. 

     Thank goodness, we did have a knowledgeable REALTOR that helped us find the home and “coached” us to answer all the questions in our minds.  

     Sorry to be rambling down memory lane.  Want to learn more, checkout the following information:

Why this blog post?

Our office likes to help those purchasing their first home and find it very rewarding. 

First of all we help you find a reliable and knowledgeable loan officer, as there are many out there just wanting to make a “fast buck.”

We try to pass on the  many hours of experience with other buyers and sellers over the years so we can help your experience be a really good one. 

We will help you save time, money and avoid mistakes too often made by new home buyers.  Getting into a bad loan can be continual aggravation and we need to avoid that for sure.

You are looking for:

1) Best mortgage for first time buyer

2) First time home buyer assistance programs

4) Understanding your credit report

5) How much home you can afford

6) And much more!

 Watch for additional blog posts with home buyer information

www.indianarealtyone.com     Arnie Goldberg  VP Marketing,  Rick Patton, Broker Owner