About Johnson County, IN

Are Closing Costs Tax Deductible????

We frequently hear this question as we're working with buyers to find the "perfect place" in Indianapolis. Of course we aren't tax accountants (thank goodness!), and therefore not allowed to provide tax advice. But we can refer our clients to great resources where they can find the answers to these questions.

According to the IRS website, Loan Points and Origination fees are tax deductible, and PMI may also qualify. Visit this IRS website for the details. It is actually amazingly easy to understand and an excellent resource. We also recommend you talk to a tax accountant to see how this applies to your individual circumstances.

Thank you Lenn Harley for reminding us about this in your recent post Is The Origination "Point" Deductible?? Yes the IRS Says So". Of course, we also caution everyone to read the IRS site carefully, because as Lenn so aptly put it "The Devil is in the Details". We couldn't agree more!

Originally posted by Steve and Tonda Hoagland on their Active Rain Blog, www.IndyChats.com

Guaranteed Buyouts Cost Sellers $$$$

One of our former clients in sent us an email today. They are considering building a new home in Indianapolis and want to find a Realtor or builder who is willing to offer a Guaranteed Buy Out. Are we interested? Here was our response.....

We have never taken on a Guaranteed Buyout because we don’t feel it is in the best interests of our clients. In essence, to provide a GBO we would have to hedge the risk of selling your home. To do that we would have to offer less as a GBO price than the current market value. For instance: We might offer you 80% of your list price for your home if it doesn't sell within a particular time frame.

We have met with some of the best builders around Indianapolis. Most of them are also hesitant to do a GBO, even if the “new” home is significantly higher priced. There is a substantial amount of risk involved – particularly in the current real estate marketplace.

Understandably, the idea of a GBO is very appealing to a seller– mostly because you won’t end up owning 2 homes at the same time at some point in the future. However there is a cost to that reduced risk.

In our experience the best way to reduce your cost and maximize your return is to hire a great agent and sell the home out right. The housing market is very much like the financial market – it is very efficient and if it seems like too good of a deal it probably is. If a builder is offering a GBO, the dollars are “still in there” – they just move to a different column on the spreadsheet. A GBO requires a builder to assume the risk of selling your property. Because the market is efficient they have one of two options:

1. Offer you less than market value as a GBO price.
2. Offer you market value, but add the “risk value” to the purchase price of the new home.

Either way there is a cost to you if the home doesn't sell in the designated time.

You have several different options.

Aggressively market your home with an experienced agent, sell your home at a price you are comfortable accepting, then contract with a builder at the very best price you can negotiate. (May require a double move.

Accept a guaranteed buyout price that is significantly below market price, but know you won't own 2 homes at the same time. (From either a builder or broker who is willing to provide a GBO.)

Accept an inflated guaranteed buyout price from a builder and wonder how much just got added to the price of the new home.

We firmly believe that in order to get the best price on your new construction home in Indianapolis, you should negotiate the price independent of any discussion of a guaranteed buyout from a builder. It's the same principle as negotiating a price on a new car without a trade in! That way you can know for certain the true cost of your home and compare builders more accurately. For the most part, our experience has shown that Guaranteed Buyouts Cost Sellers $$$. Unless you happen to come across a broker or builder that doesn't know the market or is willing to agree to a buyout at market price. In that case... they will usually end up keeping the home on the market for months after the buyout, accruing steep holding costs, leasing or selling at a significant loss. In which case the GBO costs them $$$$ and you, the seller WIN!

If you are a short sale buyer or considering buying a short-sale in Indianapolis, there is important information you should know. As a real estate agent in Greenwood IN I know the process takes a long, we've worked through many short sales and get them to the closing table. Here are a few tips to help Indiana short-sale buyers understand the process.

Tips For Shortsale Buyers - Remember Sellers Play The Waiting Game Too!

1. Short sales require lots of patience and know the process can be long. So if you need to move yesterday I highly recommend you do not look at short sales instead look at homes where the seller can accommodate your move in date (closing date).
2. Buyers, sellers and real estate agents are at the mercy of the banks time lines. That's right, as listing agents we relentlessly contact the bank with various methods to push the sale along. Just because your agent has not heard from us on a daily basis does not mean we are not working it. Speaking for our team we follow up and watch the banks time lines very closely.
3. Get yourself educated! When considering buying a short sale ask the real estate agent you are working with how the process works. If they don't know, then maybe you are working with the wrong real estate agent. Sometimes when working with the wrong real estate agent, your dream home ends up being someone else's.
   
4. Short sale purchases are never a sure thing, meaning that sometimes because the seller is willing to accept the shortage at the end the bank must agree. Keep in mind sometimes, the seller is required to fulfill a financial obligation to the bank and in some cases either the seller is not willing or cannot meet the obligation such as being 1099'd or pay back the difference in a note.
   
5. Sometimes agents price short sales too low and numerous offers come in. One thing to remember is that the bank has final approval on the acceptance of a shortage and the numbers need to make sense to the bank or lender. Make sure someone pulls comparable on your behalf and if you really want the property offer your best and highest offer.
6. Banks do not always accept the highest offer, they look at terms and the strength a buyer has to purchase the property.
7. Calling a listing agent over and over again will not get your short sale processed any faster instead it will hinder the time available in the day to follow up and deal with the most important parts of the real estate transaction.

Keep in mind the real estate agents and the seller understand how you feel but realize not only are you sitting on pins and needles playing the waiting game so is the seller! If you are in the market to buy a short sale and want to work with someone experienced and knowledgeable in the Greenwood Indiana area, it would be our pleasure, contact the SmithFitzgerald Team! Our team has tremendous success in closing IN short sales and would love to add you to the list of satisfied clients!

The total number of Greenwood homes sold rose 21 percent, from 119 in April to 144 in May, 2010. Compared to 117 closed sales in May of 2009 this was a 23.1-percent increase. By extension, the total months of inventory based on closed sales dropped from 5.8 in April to 4.9 in May.

Each 1-percent increase in total sales was accompanied by a 3-percent decrease in the total number of pending sales. To be exact, the total number of pending sales dropped 63.7 percent, from 146 in April to a mere 53 in May. Of course, a good part of this has to do with the fact that all those pending sales in April were bound to become closed sales in May. As would be expected, the total months of inventory based on pending sales rose significantly, from 4.7 in April to 13.3 in May.

One thing is certain: Buyers will have a greater number of homes from which to choose In June. That’s because the total number of Greenwood homes for sale rose 1.9 percent, from 692 in April to 705 in May. Compared to a total of 739 listings in May of 2009, however, this is represents a 4.6-percent decrease.

The Greenwood real estate market has been quite consistent with respect to the sold-list differential over the past 15 months. Over this period, homes have sold for an average of 96 percent of list price. In May, this metric averaged exactly 96 percent.

Some other pertinent stats:

• The average price per square foot rose just slightly in May to $70 from $69 the previous month. The 12-month average is $69.
• The market absorption rate was 20.4 percent based on closed sales.
• The absorption rate based on pending sales in May was roughly a third that of April, at just 7.5 percent.
• The average ‘sold’ price rose 14.5 percent, from $144,000 in April to $165,000 in May. The 12-month average ‘sold’ price in Greenwood, Indiana is $154,000.
• While the average active price of $212,000 remained unchanged from that of April it was down 5.7 percent from the 12-month average active price of $225,000.
• The median price was $137,000.
• The typical home spent 76 days on market. This was down just slightly from the 12-month average of 78 days.

Homes for Sale in Trafalgar IN - offered by the Hoagland Group - 112 Carnation Ct

• 2,057sf 3bdrm, 2 1/2 bath, .46 acre lot

Crest Ridge Estates, Trafalgar - The cozy front porch says "relax & stay awhile" as you approach this beautiful custom built home with all of the features you're looking for -- including an open, circular floor plan perfect for entertaining! The large living room flows into a sunny dining area which adjoins the lovely kitchen and spacious family room with gas fireplace & computer nook.

The master bedroom features a soaring cathedral ceiling, arched window, huge walk in closet & bath with whirlpool tub & separate shower. What a great place to unwind after a busy day!

Everyone will enjoy relaxing on the screened porch which features a cathedral ceiling & adjoining deck or playing in the fenced backyard complete with playset & professional landscaping for added privacy. Other amenities include brick/cedar exterior, mini barn, large cul-de-sac lot (.46 acres) & security system.

This property is nicely updated & meticulously maintained -- plus appliances are included (even the front load washer & dryer), taxes are low, and it's close to "4 Star" Indian Creek Schools! Convenient location just off of SR 252. Easy drive to Greenwood, Martinsville, Camp Atterbury.

Contact Steve or Tonda Hoagland for more details or to schedule a showing!

Property details, google map, virtual tour and more for 112 Carnation Ct