NY Post On Why It May Be A Good Time To Buy

The article is here.

Indianapolis among Top 10 “Best Bang for the Buck” Cities

Frankly I’m not surprised it’s not listed higher, and that Texas ranks so highly. The story is here.

Coldwell Banker announces 10-Day Sales Event

An innovative idea implemented by national real estate company Coldwell Banker, it’s a promotion designed to garner attention to Sellers making price reductions for a limited period of time (10 days…).  With national TV, radio and Internet promotion, the idea is to expose these homes at lower prices and generate offers.  We’ll see how it works, but I think it’s a great idea!

$7500 Tax Credit for First-Time Home Buyers

Designed to stimulate the housing market, the government is offering a $7500 tax credit for first-time buyers, the definition of which extends to those who have not owned a home for three years. A tax credit is not a deduction but rather a full credit added to the bottom line of your tax return! If you owe $1000, you can receive $6500. If you have a refund, add $7500 to it! 

This credit is really a 0% interest loan that is repayable over 15 years, $500 per year. Still, it sure beats the terms of your average “12 months same as cash.” This is 180 months same as cash!”

While there are no real Zero Down Payment loans any more, I can think of at least one creative way to use this credit to buy a home. When using an FHA loan (3% down, 3.5% down starting in January), the down payment can be a “gift” from a family member. A parent, for instance, could provide the down payment, and the buyer could “make a gift” to the parent at tax time with the proceeds from the tax credit. Who do you know that could benefit from this limited time offer from the government? By the way, the credit is retroactive to any purchases made in 2008 so tell anyone you know.

Little decline in apprecation in Indiana and the Midwest

Check out the map to see that the depreciation of home prices in Indiana is very modest, falling in the range of 0 to -2.5% appreciation.

National home price depreciation is decelerating

While still declining, the pace of the decline is decelerating, hopefully signaling the approach of the bottom of the market. See the full report here: http://www.housingwire.com/2008/09/24/home-price-declines-not-getting-worse-report/

Reporting the local market conditions

Wow. It seems this summer is nothing but bad news. I have decided to report things going on in our local real estate market. The national real estate market on average is bad, of course, but Indianapolis is not average. We did not see the huge artificial appreciation of home prices that the coasts did. Most of our foreclosures have come in the $100,000 – $150,000 range, not in $600,000 + homes where people were using “exotic” loan products to qualify because no other homes were available.

So while we may have an overall decline in home values, it’s a relatively small number. I guess that’s the upside of our conservative market – no, you likely won’t get rich with double digit annual appreciation, but you won’t get double digit depreciation either.

Holiday Sales!

No, I’m not talking retail sales… Home sales! Perhaps buyers are in the holiday spirit, but count ‘em – three of my nice listings sold within 10 days of Christmas!  Each of these was over $500,000, further evidence for my theory that the perception of the Indianapolis market is worse than it is.  In the price range I typically work ($200,000 to $600,000) buyers with jobs and decent credit can still easily get a loan at a great rate. Thanks to Indy being so affordable, people don’t have to stretch to afford a nice house, so the number of foreclosures in this price range is not what it would be in more expensive areas. But, people read the bleak national real estate news, decide it’s a bad time to buy, and consequently the demand for homes is down. It’s a self-fulfilling prophecy.Indy does not have the ups and downs of more volatile markets.  I think 2008 in Indy will see stronger sales, similar to those of the first half of 2007.  There are some good buys now, though, and if you’re thinking about it, contact me.Happy Holidays! 

Coldwell Banker the Top Real Estate Franchise again

When I’m talking with potential sellers about marketing, I typically downplay the importance of the real estate company.  After all, it’s not the companies who are taking the all-important photos, writing the narrative property descriptions or footing the bill for the print and online promotion.  And it’s not the companies who make the endless phone calls, negotiate and bring years of experience to the table.  We are independent contractors running a business within a business.  Yet, it is important to have a brand behind us that consumers and agents trust.  I know when I see a home listed with Joe’s Discount Real Estate Shack, it doesn’t inspire confidence in getting a deal done.  So, it’s nice to be affiliated with Coldwell Banker, a brand that consistently ranks as the number one real estate franchise. 
The 2007 Franchise Times Top 200 issue came out and Coldwell Banker is again the number one ranked real estate brand for the eighth year in a row.  The brand is 12th overall.* Below falls the top 15: 

1. McDonald’s

2. 7-11

3. Carlson Wagonlit Travel

4. KFC

5. Ace Hardware

6. Burger King

7. Subway

8. Pizza Hut

9. Wendy’s

10. Circle K Convenience Stores

11. Marriott Hotels, Resorts & Suites

12. COLDWELL BANKER

13. Hilton

14. Taco Bell Corp.

15. Holiday Inn Hotels & Resorts

Down Payment Assistance not gone yet

I haven’t written a post here in a while. Believe it or not, I have been busy trying to keep up. I’ve got many folks wanting to sell homes and I’m working hard to expose their home to the now smaller pool of potential buyers.

There is some good news for people needing down payment assistance:

“At the request of AmeriDream, HUD has voluntarily agreed today that the HUD rule banning seller-funded down payment assistance will not be effective with respect to AmeriDream until February 29, 2008. HUD will recognize all applications that have a signed sales contract prior to the effective date according to Congressional testimony provided by HUD.

This agreement applies only to AmeriDream. AmeriDream will be able to fund gift applications received until February 29, 2008, and will be only one of two entities that may offer seller-funded down payment assistance after October 31, 2007.”

- AmeriDream press release 10/29/07

This is a seller funded down payment assistance (gift) program targeted at low to moderate incomes and first-time buyers. It appears there is a limited time this will be available, please email me for more information.

Additionally, I was able to negotiate a sale (at over 98% of list price!) for $397,000 and the buyers are financing 100% of the price with good credit. This is a Fannie Mae conforming loan. With all the recent bad real estate news it may be surprising that these loans still exist, but they do. It’s probably also surprising that a buyer in today’s market would pay close to list price – I like to think the Seller had a great real estate agent… ; )