Tonda & Steve Hoagland Greenwood IN Real Estate

Open House 6456 Deerwood Ct, Greenwood IN - Sunday Sept 20, 2009

Deerwood, Greenwood - You're invited to visit Steve at Sunday's Open House,

6456 Deerwood Court on September 20 from 12:00 PM to 1:00 PM.

If you're in the Greenwood area -- stop in and say "Hi"!

Property information

Posted: Wednesday, September 16, 2009 10:05 AM by Tonda & Steve Hoagland - Hoagland RE Consulting Group

Open House in Hill Valley Estates on Sunday, September 20, 2009

Hill Valley Estates, Indianapolis - You're invited to visit Steve at Sunday's open house at 42 E Hill Valley Dr on September 20 from 1:00 PM to 2:00 PM.

If you're in the area, be sure to stop in and say "Hi"!

Property information

Posted: Wednesday, September 16, 2009 10:05 AM by Tonda & Steve Hoagland

Can Anyone Be a Real Estate Consultant? (Part 1)

So I'm showing homes to a new client in Greenwood the other day and I had a few random thoughts. "What does this person think of me?" "Am I being of value to them?" "From her perspective - what is my job?...and am I doing it?"

Based upon what I had done so far it was pretty simple. Answer the telephone. Set up some showings. Meet her at the house. Bring along some information. Answer some questions. Doesn't sound like much does it? Is that what it takes to be a good realtor? Are those the skills that are necessary to be a real estate consultant? If so, this is an easy job! So why doesn't it feel easy?

Then it occurred to me. The client only sees the tip of the iceberg. What they don't see are the other skills that are necessary like:

• Marketing - eNewsletters, drip campaigns, blogs, branding, advertising, magazine articles, and effectively utilizing the reach and range of the internet
• Sales - being a consultant...the clients advocate, interpersonal skills, providing accurate advice on market values, offers and so much more
• Organization - being able to work without direction, client management, project management
• Technology - client database management, website creation, website content, online systems, email, advanced telephony, and all computer applications
• Photography - utilizing advanced equipment to capture the very best a property has to offer potential buyers
• Staging - advice and counsel on how best to showcase a clients property
• Financing - mortgage assistance, closing costs, property taxes, title insurance, warranties, FHA, VA, $8000 tax credits and so much more
• Legal - contracts, title, Indiana State laws, tax exemptions, closing documents, and HUD statements to name just a few
• Property - easements, surveys, dated/outdated/updated, constructions, parcels, plats, subdivisions, tenants rights...the list goes on and on
• Industry knowledge - inspections, appraisals, sellers disclosures, market trends, mold, termites, radon, foreclosures, short sales, sheriff sales
• Communication skills - Listening skills are primary on the list, but includes writing and verbal skills
• Team building - Assembling a network of experts to call upon routinely, like inspectors, lenders, movers, stagers, insurance, and others
• Knowledge of government programs - the $8000 first time homebuyer credit is an example
• Negotiating skills - developing and executing strategies for offers, counters, inspection responses, and dozens of other agreements
• Operational abilities - business planning, business management, expense management - the business of running a business

There really is a lot more to being in real estate than most people see. And the thing is....if I'm doing my job right my client will never notice how I skillfully and seamlessly weave all of those skills together and help them sell their home or find the home of their dreams. But at the end of the day when they turn to me and say "thanks for making this possible"....that's when my true reward is received.

Would you like to know more about each of these skill areas? Stay close as the Hoagland Group publishes an entire series of articles that will delve into each of these categories to uncover the true skills needed to be a vibrant and effective consultant in today's real estate market.

Selling Your First House? -- Here's the Scoop! (Part 3 - Title Insurance) -- So what is Title Insurance, why do you need it and how expensive is it?

The most important thing to know is that it protects your family, the buyer and the lender against any possible future questions over legal ownership of the property. Prior to all closings in Indiana, a title company will complete a title search to see if there are any known defects or liens against the title -- in other words, does the person selling the home really own the property and has anyone filed a lien against it for unpaid debt? (Like the county for unpaid taxes or a contractor who performed work on the property, but was never paid) If something arises from that search, it will need to be remedied prior to closing, but what if something surfaces after closing? Chicago Title, explains it this way:

How can there be title defect if the title has been searched and a loan policy issued?
Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.

What title insurance protects against.
Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:

• False impersonation of the true owner of the property
• Forged deeds, releases or wills
• Undisclosed or missing heirs
• Instruments executed under invalid or expired power of attorney
• Mistakes in recording legal documents
• Misinterpretations of wills
• Deeds by persons of unsound mind
• Deeds by minors
• Deeds by persons supposedly single, but in fact married
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud

If the property is being purchased using a mortgage loan, there will be two simultaneous policiies. The seller normally purchases a policy to protect the buyer, while the buyer purchases an additional policy to cover their lender. The rates are based on the sales price. In Indianapolis and surrounding areas, a policy purchased by the seller for the buyer might range from as little as $600 for a $100,000 property to $1,070 for a $500,000 sale. This should be part of the Estimated Net Proceeds document that any good agent will complete for you when listing your home.

For more information on Title Insurance, visit Chicago Title's website.

Other blogs in this series:

Here's the Scoop! (Part 1 - Real Estate Fees)

Here's the Scoop! (Part 2 - Indiana's Pro-rated Taxes)

Show me the money! How much do you walk away with after the sale of your home? That's what you really want to know -- right? Here's the calculation:

Sales Price - Your Mortgage Payoff - Expenses = Net Proceeds.

A good listing agent will provide you with an estimate of these Net Proceeds based on different sales prices prior to placing your home on the market. Later, when you receive an offer, your agent will revise this estimate based on the specific variables in the offer.

Examples of common seller expenses are: Brokerage Fees (covered in Part 1), Pro-rated Property Taxes, Title Insurance, Home Warranty, Recording Fees, and other Misc Fees which vary with each transaction.

In part 2 of this series, we're tackling the subject of pro-rated taxes. If you live in almost any other state...it's probably no big deal. But if you live in Indiana, where taxes are billed one year in arrears.....it's a crazy big deal! So, here's a brief and hopefully easy to understand explanation of how pro-rated taxes work in the state of Indiana ("easy" and "property taxes" -- now that's truly an oxymoron!)

In Indiana, property taxes are billed twice a year, in May and September for the prior year. It works like this: In May of 2009 a tax bill was mailed, from the county where the property is located, for payment of property taxes for the period of January 1 through June 30 of 2008. In September 2009 a second tax bill will go out for payment of taxes for the period of July 1 through December 31, 2008. This continues each year until a homeowner decides to sell their home. At the time of closing, since the seller has been paying a year in arrears, they will need to "catch up" on taxes through the date of closing. Understand, the homeowner isn't behind in their payments. The county hasn't billed them yet!

Let's look at an example of how this affects a seller: It's June 1, 2009 and you've just successfully negotiated an offer to sell your home and the closing is scheduled for June 30. The purchase agreement specifies taxes are to be pro-rated through date of closing, which is customary in Indiana. You've already paid the May 2009 bill which was applied to the taxes for the first half of 2008, but you still owe taxes from July 1, 2008 through date of closing, June 30, 2009, even though these have not yet been billed.

For our example, let's say that taxes on this property are $2000/half (every 6 months), as the seller you will be required to pay the buyer $4000 at closing in order to "catch up" to the date of closing. Why does the money go to the buyer? Why doesn't it go to the county? Good question. Because the seller has paid all of the taxes which have billed, the county won't accept "pre-payment" for future bills. That means that the next bill in September 2009 will go to the new homeowner, even though it's for a time period prior to their purchase of the home. Make sense?

This pro-rated tax amount can be a significant number and may seriously impact a seller's bottom line. Here's the good news. When you purchase your next home, the seller of that property will also be paying you a lump sum at closing to cover taxes which are due, but not yet billed.

Well that's a brief and over simplified explanation of pro-rated property taxes for Hoosiers. Over simplified???? Unfortunately, yes! For instance, not all counties bill at the same time of year, and many counties, like Marion (Indianapolis) are often billing an additional 6 months or more behind. The good news? -- You don't need to understand every scenario, that's why you hire a knowledgeable agent to guide you through the process!

For more detailed information regarding Indiana Property Taxes:

• General Property Tax Information
• Property Tax Deductions
• Property Tax Appeals Process
• Learn Where Tax Dollars Are Spent in Indiana