It's December 3 and 70 degrees in Indiana!!

Who would have thought a Hoosier could play golf, in Indiana, in December?  Harbour Trees golf course was busy this past weekend and today they are open for play, thanks to the awesome weather.  If it didn't get dark so early in the day, I would be out playing, despite the wet ground.   I sure hope many of you are taking time to hit the links and enjoy this spring like weather.  Who says you can't play golf year round in Indiana??

Harbour Trees to host 2014 USGA Women's Mid-Amateur

Pretty cool that my home course is hosting a USGA tournament.  Congratulations Harbour Trees! 

http://www.usga.org/news/2012/November/2014-Women-s-Mid-Am-To-Harbour-Trees/

Buying a lifestyle, not a just a home

When we moved to Noblesville, we purchased a house that offered a certain lifestyle.  Mike and I enjoy golf - the peacefulness of being on the course, the beauty, the friendships, the competition, the respect, the integrity.....it is more than just a game.  Buying a home on a golf course gave us the opportunity to live and breath what we love.  We hear the clanging clubs as golfers pass by, we see the beautful course (and watch someone else cut the grass) 24/7, the kids sometimes sneak out and run on the open fairway, we waive to friends as they pass by and while out playing our house is a convenient pit stop when nature calls.   A little slice of heaven....each and every day!

Knowing how much we enjoy our lifestyle, it only makes sense to help future homeowners find their dream lifestyle.  My passion is showing golf course homes and neighborhoods near and around the clubs.  There is something for everyone - price ranges that meet the individual budgets.   Find family homes, retirement homes, 2nd homes, homes on near the tee box, on the fairway, near the green, overlooking a pond - you tell me what you are looking for and I can help you find it. 

Considering a move?  Ask yourself what are you buying - a home or a lifestyle?  

Stony Creek Golf Course - 2013 Indiana Course of the Year

One of Noblesville's fine public golf courses was named 2013 Indiana Course of the Year - Stony Creek Golf Club.  Offering beginner, youth and junior programs, summer golf camps, a par 3 course as well as a full 18 hole course, Stony Creek is an affordable and enjoyable course.  They also host the Hamiton Southeaster Girls Golf team. 

To read more about Stony Creek, just click the link below. 

http://www.stonycreekgolfclub.com/

Cost vs. Price Explained in simple terms

I am a little bit of a chart/numbers junky so the link below really pumped me up.  It is a great visual that explains how just .5% jump in interest rates can impact your monthly payment. 

Cost vs. Price Explained  

BUY NOW....while the rates are low!!!

Benefits of having a Buyer's Agent represent you

No need to make buying a house harder than it has to be.  Don't think you have to track down every agent for every listing that you want to see.  You may waste a lot of time trying to reach agents.  Find an agent that you like, an agent that you trust, and then partner with them.

Every buyer could use a good Realtor partner.  And like any good relationship, commitment only makes it stronger.  Be honest about what you want, trust that the Realtor is working for you and will keep your best interest at heart, and ask questions.  Your agent can help you track down homes, set up showings, give you information about neighborhoods and market values.  A good Realtor will work with you and only enhance the buying process.  

If building is an option, take your Realtor along.  Did you ever consider that the person sitting in the model home is working for the builder?  They absoluetly are working for the builder.  That doesn't mean they won't work with buyers, too, but it does mean their loyalty is to the builder.  It doesn't cost a buyer ONE CENT to have representation.   So if it doesn't cost you anything, why not have a licensed agent represent you?    (Builders will not, and can not, charge buyers with representation more or offer discounts to buyers that don't have an agent.  So don't think you might get a better price if you negotiate on your own.)

So if you are just thinking about buying a house, start looking for a business partner.  Interview agents, check out their web presence - you can learn a lot about a person via the internet, find someone you are comfortable working with.  Make it a fun experience!

Radon - What is it and why test for it?

More and more homeowners are considering radon detection a "must" - and with good reason. Health officials have warned that exposure to unsafe levels of radon can cause an increased risk of cancer. In fact radon is the leading cause of lung cancer deaths among nonsmokers in North America, yet it is easily preventable. The Environmental Protection Agency has dubbed January "Radon Awareness Month." Read below to learn more about testing radon levels in your home and protecting your family.


WHAT IS THE SOURCE OF RADON?

Radon is a naturally occurring odorless, colorless, radioactive gas that is formed by the ongoing decay of uranium in soil, rocks, sediments, and even well or ground water. While radon that escapes into the atmosphere is not harmful, dangerously high concentrations can build up indoors, exposing residents to possible health risks.


HOW RADON ENTERS THE HOME

Radon gas can migrate into the home in several ways. Openings or cracks in basement walls or floors are common avenues. Sumps, basement drains, and spaces around gas or water fittings can also allow radon into the structure.


HOW CAN MY CLIENTS FIND OUT ABOUT RADON IN A HOME THEY ARE CONSIDERING FOR PURCHASE?

Radon can be measured using several different types of devices. Talk to your home inspector to find out what device they use and how accurate it is.

REDUCING THE LEVELS OF RADON IN THE HOME

Radon mitigation methods can include sealing likely entry points, improving ventilation, and a process called soil depressurization, which vents air from the house back into the surrounding soil, reducing the level of radon that can enter the home. Professional mitigation services are recommended to provide recommendations for a home's specific conditions.

Noblesville 2011 Holiday Parade

The annual holiday parade in Noblesville was yesterday.  It was a rainy, dreary day, but that didn't stop many from attending the parade - including the Noblesville Carpenter office!  It was a first for our office, being in the parade, and we worked hard to put it together.  From ordering candy to pass out, organizing logo apparel, and decorating the awesome cardboard house, it took a group effort.  At the end of the day, we were a wet bunch of Realtors with a collapsed house (dah, cardboard doesn't hold up in the rain), but we all had a terrific time.  Noblesville is such a great town - and rain or shine, the towns people will show up to support a local parade.

Holiday Parade Photos

An offer doesn't always mean a sale

"We got an offer? Terrific!". My sellers were so excited!!! It was a low offer, but in today's environment that isn't uncommon. It also is pretty normal to counter, sometimes several times. So they did. They made a good counter, showed willingness to negotiate and expected a counter in return.

The buyer walked. No counter. No reason. They just rejected the counter.

What????

One month later, another offer. Awesome! This time the sellers were more aggressive with their counter offer. They didn't want to lose another buyer. The buyer countered, a slight movement indicating hard negotiations or possibly their unwillingness to move much on the offer price. So the seller countered again, conceding more.

And the buyer walked. No counter. No reason. They just rejected the counter.

Not again!!!!

The reality is it is a buyer's market. To have two counter offers rejected before indicating an impasse is tough to swallow. There was no indication of 'a final offer', no communication about 'the house is over-priced'. In fact the agent indicated that the buyer wanted to get this together. Obviously they changed their mind.

The moral of the story? The obvious one - get a contract signed as quickly as possible. But the true lesson is to negotiate in good faith, don't play games and hold out to save a thousand dollars. Be aggressive and remember it is a buyer's market!

In case you wondered - my sellers did negotiate aggressively and they gave it all they could. They controlled what they could but unfortunately, the buyers didn't think it was enough. I did talk with both agents, attempting to understand the motivation and rationale behind the buyer's logic and neither could offer much. Both indicated the decision surprised them, too. The buyers apparently just changed their minds.

Now they hope that the third time is a charm!

Why Professional Photos?

90% of home buyers begin their home search on the internet.  If they are looking at homes with terrible pictures, what are the chances that they will like the house?  And imagine if there aren't any photos!

I hire a professional photographer to take pictures of every home I list.  They have the proper cameras, flashes, and do a much better job capturing the home than I do.  A home seller's first showing is on line and without good photos, a potential buyer may overlook the house.

If you hire a Realtor to list you house, don't let them cut corners by taking their own photos.  Professional photos DO make a difference!

Lending....sometimes it is a shell game and the buyer often loses.

What's the best interest rate?  And how much are the origination charges?  Those are two very important questions.  But they aren't ALL the questions. Is there a processing fee?  Underwriting fee?  Is the rate quoted with points?  How about the survey and appraisal?  How long is the lock on the rate - does it cost more for a 45 day lock?  All these questions are important to get an accurate quote. 

This week I reviewed three buyer's good faith estimates and to my surprise, on one HUD there were some hidden charges that accounted for $$1500 in additional fees and a .25% higher interest rate.  Now, the buyer did get a $2500 credit because they went with a 'preferred lender' - whatever that means.  So the additional $1500 in fees was netted out of the $2500 credit leaving the buyer with a $1000 credit.  But they are still paying a higher interest rate which quickly adds up.  The $1000 savings will soon translate into many thousands of dollars in extra interest.

Buyers are sometimes private about their finances (ok - always private) and as a Realtor, I respected their privacy and let them do their own homework when it came to lenders.  Through experience, I have learned to respect their privacy while helping them understand a Good Faith Estimate early in the process.  All the numbers are on a HUD statement at closing anyway, so why not help buyers price shop before they commit to overpaying?  It is just another service I can provide my clients! 

Two Costs to Consider when Buying a House

The price of the house and the price of the money - the two cost you MUST consider when you buy a home.

Think about it. You want the best price, or a deal, on the house. Right? You negotiate down to the final $100. Of course the price of the house is important!

Now it's time to finance the great priced home you just agreed to purchase. Do you consider the cost of the loan? Or is it a cost you assume you can't control?

Consider this:

$150,000 loan for 30 years - 5% interest rate .  Monthly Principle and Interest Payment = $805
    Two years worth of interest = $15,392


Now take the same loan at 5.25% interest.  Monthly payment = $828
    Two years worth of interest = $16,173

Hmmm...that's nearly $800 more interest in just two years!  Plus $23 a month more for the payment (or $552 over two years).  And the equity in the home increased by $200.  That means a .25% increase in rates just cost $1500 in two years.  And that number grows over the life of the loan.  Makes that last $100 you negotiated on the price seem almost irrelevant, doesn't it?

Consider a home worth more than $150,000?  Higher priced home = greater difference. 

Don't be short sited when you buy a house.  Just because you got a great house at a great price, doesn't mean you got the best deal.  Make sure you consider the cost of the money.  Interest rates are still extremely low!  Take advantage or pay more.  It's that simple.

How late payments, short sales and foreclosures impact your credit score

I thought this article had a lot of good information regarding the impact a mortgage late payment can have on your credit score. It also explains the implications on your credit score of a short sale and a foreclosure.

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  How Foreclosure Affects Your Credit Score

  Foreclosures—and how you handle them—may have long-term credit score implications. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Foreclosure Crisis could mean opportunity for Private Owners/Sellers

No one knows how long the freeze on foreclosed properties will continue. But the freeze is keeping the most undesirable competitors off the market, making foreclosed properties less of a factor in pricing than they have been for the past 3 years.

Q: Shouldn’t I wait for a better time to put my home on the market?
A: When there are more foreclosed properties listed for sale, the law of supply and demand applies and suppresses prices. Foreclosed properties are active competition for private home sellers during their marketing period - often being used in negotiations to the detriment of those private sellers.

With a freeze on foreclosures (a number of active foreclosed REO properties have recently been withdrawn from the market) and the fact that pending properties that were scheduled to close have been stalled and postponed indefinitely, buyer's options are reduced and competition for private owners/sellers is eliminated.

Q: Will the freeze affect my home’s value?
A: The fact that those closings did not occur could serve to temporarily buoy the value of comparable homes within a neighborhood or market area. These depressed prices do not go on the books for appraisal purpose.
The fact that active foreclosed properties are not being negotiated on, or are even being withdrawn from the market, reduces underpriced competition for the private home owner/seller. At that point, supply and demand takes over. Fewer properties available at suppressed prices will increase demand for properly priced homes not in foreclosure.

Q: What does this mean to the average homeowner thinking of putting their home on the market?
A: Two things. First, during the freeze, fewer foreclosed homes will go on the market, reducing that inventory. Second (and most importantly), buyers will be wary of making offers on bank-owned homes. The time is right and most opportune for a private homeowner/seller to market their home at a reasonable price.

Q: Are you calling this a window of opportunity, rather than a time to sit out?
A: Yes. The law of supply and demand is still relevant and at work in our economy regardless of all the other challenges we may face. Homeowners can and should seize this opportunity to get serious about marketing their home and seize this window of opportunity that has opened while it is available!

The Value of a Pre Approval Letter

Buyers get pre-approved before they write an offer.  Sellers ask to see a pre-approval letter with an offer.  But why?? 

The intended value of a pre-approval is that it shows credit worthiness.  It is not a guarantee the buyer can get a loan.  Assuming the lender has done their job, the letter is as close to a guarantee as any buyer or seller can get.  However, assuming is a big mistake.  Many lenders check credit scores, ask the buyer how much they make, how long they have been employed and how much debt they have.  Then they write a pre-approval letter without verifying that the information is accurate. A good lender verifies the information by getting copies of W-2s, tax returns, 2 months supply of bank statements and check the credit score before they offer their expert opinion that the buyer will be able to get a mortgage. 

Is this important? As a seller, you don't want to take your house off the market while the buyer gets all their lending in order only to find out they can't afford your house.  You may have lost 30 days or more on the market.  And as a buyer, do you want to get your hopes up that you are going to buy a house only to find out you really can't afford it?  So yes, it is extremely important!

Your agent, whether you are on the buying or selling side, should help you determine if a pre-approval letter is worth the paper it is written on.  Believe it or not, a lender can make or break a deal.  So if you are a buyer, ask your agent for referrals of good lenders.  And sellers, make sure you question the validity of a pre-approval letter before you accept an offer.  

Do OPEN HOUSES sell homes?

Statics show that homes not held open will not sell at an open house.  That's right, don't hold it open and it won't sell at an open house.  But the real question is IF it is held open, will the open house bring the buyer?  And that is not quite so easy to answer.

I just held a house in Noblesville, IN open for two hours on Sunday.  It looked great!  The home owners cleaned, baked cookies, put fresh flowers in vases and made the home look like a model.  We put an ad in the Indianapolis Star (color ad!), I did my homework on the competition, put on my best Sunday dress and was ready to answer any and every question a potential buyer may ask.   And guess what.... no one came! 

Based on that experience, I would say, no, the open house did not sell the home.  But selling a home isn't about doing one thing.  It takes a multiple pronged marketing approach and lots of hard work to get a house sold.  Internet marketing, multiple color photos, print advertising, broker tours, signs in the yard, word of mouth, and yes, open houses, are all part of a complete marketing approach.  It only takes ONE buyer and all buyers do not look for homes the same way.
It is reported that only 1-2% of homebuyers found their current home at an open house.  That means an Open House worked for 100% of the sellers that sold their homes to those buyers.  Not to mention the 'soft' buyer leads that advertising may genterate, meaning buyers that see the ad in the paper and go on line to get more information, or neighbors that tell a friend about the house down the street that they saw last Sunday at an open house. 
So do Open Houses sell homes?  The answer is yes.  But the reality is that Open Houses are not the most effective option for a seller.  However, if your agent is willing to hold your home open, then why not do it?  If you say no, you may have a missed opportunity.  If you say yes, you may have a buyer!

Assessment, appraisal... what is the difference?

What is the difference between and an assessment and an appraisal? The assessed value on the house is $200,000 and the seller is asking $225,000. Is it only worth $200,000? Can you get a loan for $225,000 if it is only assessed at $200,000? And why do you need to get an appraisal if the house has already been assessed? Good questions!

While both an appraisal and an assessment place value on a home, they are used for different purposes. I don't know all the legal specifications and the technical terms for describing each one, but I do understand the practical implications of each.

An assessed value of a home impacts the tax amount that homeowner will pay. Each individual home is not assessed based on its' unique value. Rather, neighborhoods and like houses are grouped together and run through a formula to determine a price range. Sales prices of homes are factored into the formula, however, the sales price of the home will not necessarily impact that individual home's assessed value. Because the assessed value is determined by a formula, a change in one home price may not be significant enough to impact individual homes.

Still confused about assessed value? I spent a good amount of time in the county assessors office trying to understand my own home's assessed value. It was a confusing meeting but I learned that the lower the assessed value the lower my taxes! So I was just fine if they didn't give me credit for granite counter tops or if they didn't add value for my landscaping.

The appraisal, on the other hand, places value on everything! An appraiser should come into the home and put a dollar figure on the structure of the home, the lot location, the condition of the property, upgrades in home, and all amenities. They are attempting to determine true market value - or what a buyer will pay for a home in today's market. The appraisal is used most often for financing (or refinancing) a home and the investor funding a mortgage wants to know what his/her investment is worth. So the higher the appraised value, the more you can borrow.

While the assessed value impacts tax payments, the appraisal has direct impact on how much buyers can borrow against the house. The numbers can be drastically different. An assessment is only as good as the county's system. And although an appraisal is more property specific and should be more accurate, it is also only as good as the appraiser. Regardless, they are used for different purposes and shouldn't be confused.

5 Most Affordable Housing Markets

Indianapolis is in the top 5!

REALTOR® Magazine-Daily News-5 Most Affordable Housing Markets

Help me find a good deal on real estate.

You want a good deal. You know it is a buyer's market and you want in on the action. Who needs high priced, move in ready, immaculate home when down the street is a discounted, bank owned home? Or a short sale home listed below market price? And you know there is a foreclosed home just two streets over that is empty and has been for months. How can you buy it for a good price?

These are all valid points. But if it were that easy to buy a home at such a cheap price, then everyone would be doing it. However, if you are interested in a fixer-upper, have some cash, and lots of patience, then there may be a good deal out there for you. If you are serious about buying a distressed property, there are a lot of resources available. Below are a few websites that may aide you in your search.

• http://portal.hud.gov/portal/page/portal/HUD/states/indiana The US Department of Housing and Urban Development website has a wealth of information, including a listing of homes for sale. A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. New homes are listed every week. Buyers can bid on property, but HUD requires that a representation by a licensed Real Estate Professional.

• http://www.homepath.com Home Path Homes are foreclosed homes where Fannie Mae was the investor. These properties are listed with a real estate broker and on the BLC for everyone to see. However, if you go the Home Path website, you will find more information about Fannie Mae homes and see a complete listing of Fannie Mae homes for sale.

• http://www.hamiltoncounty.in.gov/services.asp?id=2295 Local Sherriff Sale listings are posted on the County website. Homeowners have defaulted on their mortgages and these distressed homes are sold at public auction to satisfy a judgment. You must have cash (certified funds) at the time of the auction and purchases are not guaranteed to be free and clear of liens. So be prepared to do your homework before bidding on a home.
  

• Your Real Estate Professional Ask your agent to set up a search for you for bank owned, foreclosure, short sale properties. They have the ability to search for listing based on certain criteria and can automatically forward current listings as well as new listing to you on an ongoing basis. Don’t have an agent? Then I would be happy to help! Email me at jjaensson@callcarpenter.com or call me at 317-847-1973.