Joe Shoemaker

There have been a lot of headlines in the last couple of days regarding real estate sales, prices and so on. Much of what’s been published, unfortunately, is national numbers.

How relevant are the national existing home sales statistics which are being spit out from our national trade organization, the National Association of REALTORS®?

I mean...REALLY?!? Come on!

What in the name of all things holy do national numbers regarding existing home sales have to do with existing home sales for Devonshire or Forest Hills or Arden or one of a thousand other pocket neighborhoods in the Greater Indianapolis region?

My answer: not a flippin’ thing.

You’ve probably heard the saying that all politics is local. Well... all real estate is local. And in my not-so-humble opinion, all real estate is MICRO local.

That is to say, trends and sales from block to block and from neighborhood to neighborhood change - sometimes significantly - depending on where the specific property you’re concerned with is located.

Numbers go up. Numbers go down. Numbers go sideways.

In Marion County alone, where there are nine townships and numerous little incorporated villages and towns, we’ll find two side-by-side neighborhoods with dramatically different sales statistics.

One neighborhood’s sales may be up for two years runing, and the one right next door might be down for ten consecutive years.

What’s going on - saleswise - at 54th & Kessler North Drive has NO BEARING WHATSOEVER on what might happen in Southport or Speedway or Crooked Creek

The statistics really don’t mean a thing...unless you know how to interpret them.

So here’s the deal:

Are you wondering what your house is worth? Has the value gone up? Has the value gone down? Has it remained flat?

Talk to your REALTOR®. Call him or her. Ask, “What’s going on in my neighborhood?”

Your REALTOR® will pull data from a representative set of recent sales to help determine the current market value of your home.

It’s pretty simple, really. Enjoy the headlines.

Just don’t believe everything you read.

RESPA covers things like the adequate disclosure by mortgage lenders to consumers of charges related to the origination of a loan, the requirement that the lender provide a Good Faith Estimate (GFE) of settlement costs, the disclosure of affiliated business arrangements to Buyers, etc.

There is also a section related to kickbacks, fee-splitting and unearned fees. Section 8 (not the Housing Choice Voucher Program) of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

This week, the Metropolitan Indianapolis Board of REALTORS® sponsored an event downtown called the“Central Indiana Housing Summit.” It was a yearly gathering of REALTORS® from across the state at the Convention Center, and provides an opportunity to learn from expert economists, politicians, builders, developers and other REALTORS® about the general state of the Real Estate market in Central Indiana.

So here's the thing...A local mortgage company offered free rides on a shuttle bus to the Summit from the Glendale area. Local Real Estate Agents were invited to gather early and ride along, lessen the impact on the environment, avoiding the hassles of traffic, parking, etc.

Don’t get me wrong. I’m all for mass transit and carpooling. Anything we can do to lessen our carbon footprint makes me happy. But I’m also a bit of a real estate law wonk. My interest was piqued. I honestly didn't know if this was something that would get me crossways with HUD. Was this bus ride, as generous and well-intended as it was, a violation of Section 8 of RESPA?

I asked HUD by email about the bus. Amazingly, I received a phone call from Geri Hansen, Compliance Specialist at the Office of RESPA and Interstate Land Sales, US Department of Housing & Urban Development. I re-explained the scenario and her response was clear and unequivocal.

The free bus ride was a violation of Section 8. It would be viewed by HUD as an attempt by this mortgage lender to solicit referrals from Real Estate agents by giving them something of value. Plain and simple. And while the “value” of that thing may have been small to some individuals, it was, nonetheless, a thing of some value.

The response from my fellow REALTORS® was…well…mighty disturbing.

An employee of our local Board of REALTORS® said, “Joe, hate to tell you but there is no violation and I checked. So they were being good citizens, saving gas and the environment.”

I’m not sure whom she checked with, but when a Compliance Specialist at HUD says that it’s a violation, I’m going believe the HUD employee. I’m a bit disturbed, too, to think that a very decent and loyal employee of our local Board – one of my favorite humans on the planet, actually – is incorrect about this issue and her information is coming from within MIBOR. Yikes!

Another REALTOR® - someone who actually manages a large north side office and trains new agents – said in a very condescending way, “knock yourself out and file a complaint. One of my title reps sent me a Valentine’s Day card. I’m turning him in!”

An awfully flippant response to a violation of Federal Housing statute, don’t you think? And this person’s actually running an office and is responsible for millions of dollars in transactions every year?

Yet another agent who is on the Board of one of the MIBOR Divisions responded, “What are you serious??? A Bus ride to a free seminar on housing. I think that’s taking it to the extreme buy [sic] calling thing of value. That's ridiculous!! We are just trying to encourge [sic] folks to go to the housing summit. To call it an item of value is a complete strecth. [sic]”

Heavy sigh…

Should you care if the REALTOR® you hire follows or understands federal housing statute? If they don’t understand the law, but instead choose to overtly ignore it – or interpret it to their own liking – can they adequately represent your interests?

I believe that you should care about RESPA. I do.

Those of you who know me well also understand that I have a "thing" for mid-century homes. It's sort of a sickness, actually.

I keep my eyes peeled for some of Indy's finest examples of mid 20th century homes, including Avriel Shull, Lustron, Eichler-likes, and other random examples of cool architecture.

This week, I'm going to highlight 3 mid-century modern homes which are currently on the market in the Indianapolis area. They're all currently available and all within a few minutes of Broad Ripple.

I hope you enjoy.

Holiday greetings to you and yours.

1. 6401 N. Rural Avenue. (Download the Listing Sheet HERE) Bright, sunny and updated, this 50's Mid Century Modern (MCM) has an updated yet stylistically consistent feel. The main bath has been totaly renovated with floor-to-ceiling tile, a heated floor, new custom vanity & sink as well as a walk-in shower. There is a good mix of flooring from hardwoods to cork. New sink & tops in the Kitchen. There's a wood-burning fireplace, as well as a rec room in the Basement. A detached 2-car garage completes the package.

This terrific and notable home is ready now, and it's priced aggressively at $165,000. (Listing courtesy F.C. Tucker)

2. 6402 Broadway Avenue. (Download the Listing Sheet HERE) Located in Warfleigh, this home is a stone's throw from Broad Ripple. The home presents a terrific opportunity for someone with an artistic flair who can really bring the place to life. There's terrific natural light here from the giant windows. The 3 Bedrooms and 1.5 baths on a slab and almost 1,500 square feet exist on a HUGE corner lot with gorgeous landscaping.

This is a great house, and it's priced to sell at $166,900. (Listing courtesy Carpenter REALTORS®)

3. 6465 N. Rural Avenue. (Download the Listing Sheet HERE) This one deserves a look inside. Updated, clean and fresh in a great location. It boasts 3 bedrooms AND a full basement. There's new plumbing, an updated kitchen, replacement windows, refinished hardwoods, fresh paint, a newwer roof and a HUGE yard. There's even that 2-car garage you're loooking for.

For more information about these or any other properties, please call or email any time. (call me at 317.413.8501. email joe@joeshoe.com) It's a pleasure to serve.