You don't have to look too far to find lots of information for "First Time Home Buyers" -- but what about First Time S
ellers?
Meeting with many first time sellers in the Indianapolis area over the last several years, we've discovered they have lots of questions. They're ready to move, but often don't understand how the process works, how long it takes, what to expect and how much it costs. Often, after chatting for awhile, they come to the conclusion that it's not the right time for them. Maybe they owe more than their home is worth. Maybe their credit score isn't adequate to qualify for a new loan to purchase their next home. Many don't realize the impact of Indiana's pro-rated property taxes which bill one year in arrears. Yes, one year..... and unfortunately, several central Indiana counties, like Marion (Indianapolis) are currently billing as much as 2 years behind. This can make a dramatic impact on the seller's bottom line.
So this is the first blog in a series dedicated to answering the questions of the first time seller. Maybe you're thinking you won't be ready to sell for another year or so. Don't stop reading! Now is exactly the right time to learn what it takes to effectively prepare not only your home, but also your finances. 
Today's blog answers the question "What are brokerage fees and how much are they"?
Brokerage fees are the amount a Brokerage Company charges you, the homeowner, to sell your home. Each Brokerage Company may charge whatever the market will bear. In Indiana, it's not unusual for the fee to be between 6 -7% of the sales price. For example, if your property were to sell for $250,000, and the fee were 7%, the charge by the broker would be $17,500.
Wow! That's a lot of money! Where does that all go?
Well in a typical Indiana listing contract a large portion of it, usually at least half, or $8,750 in our example, is paid to the broker & agent representing the buyer of your home. Your listing agent cooperates with not only other local companies in Indianapolis, Greenwood, Center Grove, Whiteland, etc., but also brokerages and relocation companies from around the country to find a buyer - any buyer - to purchase your home. After all, you don't care who brings the buyer, or where they come from -- as long as someone does! Providing a full share of the brokerage fee to the buyer's agent insures that agents from all companies are incented to show, and sell, your home.
Where does the other portion go? It funds all of the marketing and advertising used to promote your property - signs, flyers, on-line advertising, print media, newspapers, Open Houses, virtual tours, photography, etc... It also compensates your listing agent who has been working diligently to promote the sale of your home and who will guide and represent you through the entire transaction from putting the sign in the yard to the closing, or as the Hoagland Team prefers to call it....The Celebration Table!
An interesting thing about brokerage fees is that they are never paid if the home doesn't sell. They also don't change if the home sells in 2 weeks, 2 months, or 2 years. Imagine going to the doctor and not paying until you were cured!
So all of the expenses of selling are brokerage fees - right? Well, not quite. Future blogs in the series will delve into some of the other costs like Title Insurance and pro-rated taxes along with other topics like staging, pricing, marketing and.....
Posted by Steve & Tonda Hoagland, www.PerfectPlaceForYou.com
When you're looking for a new home, you're searching for the Perfect Place for You (Yes, that's the name of our website-- sorry about the shameless plug!) ... But in addition to the "perfect" home, what other special places, activities, restaurants, etc. help to make where you live "perfect"?
We would love to hear about your favorite "local" hangouts or activities! How would you complete the following sentence for someone new to the Indianapolis or Greenwood area? "You know, the perfect place for you to visit is....."
Here are a few of ours:
These are just a few of our favorites. Share yours and tell us why you love them! We'll publish the findings at www.PerfectPlaceForYou and a future newsletter.
Posted: Thursday, August 06, 2009 3:14 PM by Tonda & Steve Hoagland
By now we've all heard about the First Time Homebuyer Tax Credit -- I mean, who hasn't? In fact, if you're already a homeowner, you're probably a little frustrated and maybe even a tad resentful. After all, you could have used $8000 when you bought your first house!
But many experts say it's the housing market which will lead us out of the recession, so the important question is -- is the stimulus working? In Indianapolis and surrounding areas like Greenwood and Carmel, the answer is a definite "Yes". Early in the year, first time buyers were trickling into the market, but in the last 4 weeks the flood gates have opened. Recently Steve and I have experienced several instances where we've had multiple offers on properties -- we'd heard stories about this happening in "the good old days" but had never experienced it ourselves! Now this is how Real Estate was meant to be!
Just last week I was setting up several showings in the Geist area and was told that 4 of the 6 homes were no longer available because the sellers had accepted offers the day before. Yesterday I emailed a client with some potential Greenwood properties, but when she responded back the very next day, 2 of the 6 had already pended. And it's not just in the lower price ranges. Typically the first time buyer in Indiana is looking for a home under $200,000. Now that those homes are selling, we're seeing a trickle up effect. The heightened activity seems to be reaching up into the mid $300,000 range, and with fewer of those homes on the market, if a buyer sees something they like, they need to be prepared to move quickly.
So is the market truly recovering? It's too soon to tell, but it's looking good and we're hopeful. In fact, if you know of someone considering selling, let them know that there are plenty of qualified buyers out there looking for the "Perfect Place" and we would welcome the opportunity to share with them how to successfully sell in this market. And if you know someone considering buying - have them contact an experience real estate professional! Interest rates are still low, (under 6% today) the tax incentive is in effect until December 1, 2009 (properties must close by this date to qualify, so it's essential to be under contract by mid October), and there are still plenty of great homes on the market - but be prepared - the good ones disappearing quickly!
3263 Eddy Court in The Islands is Sold!
The Islands, Washington Township - The single story at 3263 Eddy Court has been sold.
This home had multiple offers and an accepted agreement within a week. The Indianapolis Market is seeing a lot of activity and nice properties are selling quickly. Contact us for more details!
Posted: Tuesday, June 30, 2009 11:31 AM by Tonda & Steve Hoagland
It's true. Most HUD Foreclosure properties are currently available for purchase with only a $100 down payment if financed with an FHA loan. So, what is a HUD Foreclosure and how do you buy one?
They are foreclosed properties insured by the US Department of Housing and Urban Development which are sold through an online bid process. They are put on the market for an initial 10 day bid period where only "owner occupants" can place bids. They are listed on Fridays with bids accepted for the next 10 days. The winner is announced on the following Monday. If no one bids, or there are no bids acceptable to HUD within that initial bid period, then it is offered to anyone, including investors on a daily bid basis until sold or taken off the market for evaluation or price reduction.
Short Sales, Bank Owned and HUD properties all offer good financial values in the Indianapolis market place. Many HUD properties are only a few years old and need only cosmetic updates, although they come in a wide variety of prices and conditions. It's very important to do your homework ahead of time and have the property inspected, as all homes are sold "as is" with no warranties. Be sure to work with a knowledgeable realtor that knows the local market. Great deals in the wrong location may not payoff when you get ready to sell.
Here are a few important highlights:
· Offers are submitted by a real estate broker via the internet
· $1000 earnest money & contracts must be to HUD within 48 hours of offer acceptance ($500 for homes with sales price less than $50,000) in the form of a money order, official bank check, or cashiers check
· Mortgage pre-approval to HUD within 48 hours of offer acceptance
· $100 down payment on most properties with FHA financing
· Property sold "as is"
· Must close within 45 days of offer acceptance
· Inspection must be completed within 15 days of offer acceptance
· HUD will pay up to 3% of purchase price for selected closing costs if requested in the accepted offer
· New HUD listings appear on Friday mornings
· For a list of available properties and more details visit: www.HMBIREO.com
Posted: Tuesday, April 07, 2009 3:17 PM by Tonda & Steve Hoagland
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