High quality at a low price never seems to hold true, but this is reality for High End homes in Hamilton County.  If you have money to invest, have stability in your business, or provide a skill set that proves to be in high demand, I recommend that you buy a luxury home right now.  Nowhere is there better opportunity than the upper-tier homes.

Why?

Surplus Inventory.  This is found with a simple calculation determining rate of homes sold each month compared to homes active on the market.  A 6 month inventory is a great balance between seller and buyer.  Right now, depending upon location, luxury home inventory is measured in years.   In most areas there is at least 2 years and some up to 5 years of luxury home inventory.  There are great buys out there that cannot be replicated for the price.  I have never met a home builder that will start a project with a plan to lose money.  Additionally, the cost of building materials has proven to increase over time.

What will you need?

Ample cash or flexible seller financing.  Get a loan at 417K or below for the best interest rates.  Above this loan amount will require 20% down-payment and a higher interest rate.  Seller financing may be a viable option when the seller feels that you may be their only buying option or they gain a better price for the home.

How do you find a great deal?

Compare.  First, take a look at new construction properties on the market.  If the home has had a one year birthday, it is likely that the bank may be involved in the negotiations in a short sale.  There may be no further profit left for the builder, but there are many incentives for them to sell the property prior to foreclosure.  These homes are great investments since they provide modern floor plans and reduce hidden out-of-pocket expenses compared to older homes.

Be flexible in location.  There are certain areas starving for buyers and may be required to offer more land or higher amenities to compete with higher demand areas.

Work with a real estate professional educated and certified as a Luxury Home Specialist.  By working this market every day and understanding the inventory, financing alternatives, and negotiating points, a real estate broker with this experience could save you tens of thousands of dollars.  Call or email my office for target areas and more information on the luxury home market.

Right now, demand for residential properties for lease, lease to own, and contract sale (seller financing) is improving.  There are several reasons for this, but the primary reason is tougher loan restrictions on credit.  Lack of easy money just a year ago has created a new group of people who want to, but can’t, purchase the conventional way.  Many of these people have stable cash flow incomes, but for one reason or another (ie. job market, medical bills, credit cards, or divorce) have reduced credit scores. 

Traditional Financing and associated challenges:

FHA- A loan limit of $271,000 in Indiana has increased the credit rating cutoff to 620 to mitigate risk.  The FHA (Government Backed) loan is the preferred option right now for properties that are less than $300K.  FHA usually would be slightly more expensive to the strong buyer.  This is not the case now.

Fannie Mae/Freddie Mac- Conventional and insured conventional loans sold to the secondary market with an upper limit of $417,000 in Indiana are much more restrictive.  One year ago, the Fannie Mae loan (estimated at 60% of the current outstanding loans) was the primary option except for a buyer with some serious credit issues or someone who could only put a very small amount of money down.  There is now a rate bump (higher rate) required based upon a FICO credit score less than 740.  A 740 credit score is very, very good.

Jumbo loans- With the major problems with private mortgage insurance providers, there is no capability to borrow above $417,000 without a 20 percent down payment.  In recent past, the optimistic small business owner may have purchased the same property for 5 percent down payment; therefore, the upper end market has lost a pool of buyers.  Additionally, mortgage interest rates for Jumbo Loans are much higher than smaller loans due to the perceived risk and lower demand in the secondary market. 

If their price range sales are sluggish, many motivated home sellers must turn to a new marketing approach to accomplish their goals if the competition and high inventory levels will prevent a profitable short-term sale.  There is a pool of responsible buyers who would love to live in the home and there is another group of sellers with an obvious demand to get cash flow to cover their debt and maintenance requirements.  These sellers likely comprehend the increased probability of selling their property for significantly more money in the future.  There are viable options and you should decide what is best for your situation with professional guidance and expert advice.  Let’s get specific, call Me.

Chances are that something may go wrong with your next home improvement project.  According to Consumer Reports, out of 17,129 readers asked about their experiences with 18 common projects ranging from painting a room to building an addition, 44% had at least one problem. 

For Carmel and Fishers residents, the best way to avoid similar problems is with extra planning and patience. 

Take the time to consider all costs.  Unexpected incidentals, purchasing the incorrect products, and surprises such as delivery costs and trash removal fees can increase your expenses.  More than 25% of people asked said they paid for poor planning by a median of $625.  Even projects perceived as simple like interior painting have cost readers a median of $280 extra due to unforeseen issues.

Make a plan and stick to it.  One in 10 people asked said they changed their minds during remodeling.  37% of those who made changes spent a median of $2,000 extra.  For people doing big additions, that number ballooned to $10,000.

Hire a realistic contractor.  Nearly one in 10 readers went over budget because their contractor underestimated expenses, did poor work, or failed to anticipate code requirements.  In today’s environment in Carmel and Fishers Indiana, lowball bids are more common, especially in competitive markets.  According to Bruce Irving, a home renovation consultant in Cambridge, Mass., “In today’s climate contactors are loath to lose a job by being too gloomy about a project.  If a guy underbids, chances are he’ll look to make up the difference.  Watch out for estimates with several open-ended amounts for products. 

Check references.  Make sure your contractor has insurance, including workers’ comp, and an up-to-date license.  Scrutinize the contract closely.  It should list each product down to the model number.  If this seems too picky, consider that the survey revealed more than 1,600 complaints of unexpected incidentals costing an additional $200, such as hardware and finishes.

Do some investigating.  Unexpected surprises such as rotting joists, rusted pipes, and frayed wiring were experienced by 16% of the respondents and cost a median of $1000 to fix.  A good contractor will check for potential problems.  Wisconsin based contractor, Dean Herriges, says “during the planning stage, we’ll do some exploratory work to see what’s going on behind those walls.  Telltale signs include water-stained walls (leaky roof) and sawdust along the baseboards (termites).  Your contract should include a clause for unforeseen conditions. 

Examine the financial details.  Unexpected closing costs and extended interest payments costing a median of $1,900 were incurred by readers who refinanced a project.  If needed, be sure the work has permits and conforms to local codes.  Greg Johnson, a building inspector in St. Paul, Minnesota, says a contractor who asks customers to get their own permits “is always a red flag” and “there is a good chance he’s ducking a licensing requirement.”

Below are examples of the hidden costs of home improvement.  These show median overall cost overruns based on a survey conducted by Consumer Reports for eight popular projects:

Bathroom remodel:  60% went over budget, overrun:  $600, main causes:  changed plans, needed to upgrade systems and structural problems. 

Kitchen remodel:  56% went over budget, overrun:  $1200, main causes:  changed plans, contractor underbid labor, and needed to upgrade systems (plumbing, wiring, etc.).

Deck addition:  45% went over budget, overrun:  $700, main causes:  changed plans, cost of materials increased and needed special tools.

Room addition:  55% went over budget, overrun:  $2000, main causes:  changed plans, contractor underestimated labor, and cost of materials increased. 

Basement finishing:  56% went over budget, overrun:  $1350, main causes:  changed plans, needed to upgrade systems, and needed special tools.

New windows:  33% went over budget, overrun:  $600, main causes:  changed plans, structural problems, and water damage.

Interior painting:  31% went over budget, overrun:  $280

Major landscaping:  45% went over budget, overrun:  $735, main causes:  changed plans, increase in cost of materials and needed special tools. 

Source:  Consumer Reports May 2009 Issue

Unfortunately, even here in Carmel and Fishers Indiana, statistics show that most people ignore an unfriendly letter or call from the bank after a missed or late payment(s).  Take action now before it’s too late and the bank takes over the property.  One solution to this difficult situation is a real estate Short Sell.  A Short Sell is a case where a bank can avoid an expensive foreclosure by accepting an offer for an amount less than what is owed on the property prior to an expensive foreclosure.  For the owner of the property, a short sale is an attractive alternative to a foreclosure, which can be personally and financially devastating. 

According to The Distressed Property Institute, LLC the ramifications of a foreclosure include:

• Current Fannie Mae Loan rules prohibit another mortgage for 5 years after a primary residence foreclosure and 7 years for an investor property. 
• Interest rates can be increased due to risk for a purchase as it is now noted on the application if there has been a foreclosure in the last 7 years
• Credit scores could be lowered 250 to 300 points for over 3 years and will remain public in credit history information for 10 years or more. 
• A challenge to Security Clearance and a negative fact that may be available to an employer.
• The bank has the right to pursue a deficiency judgment (loss) due to foreclosure.

Alternatively, the benefits of avoiding foreclosure through a short sale:

• Fannie Mae loans potentially can be gained in as little as 2 years.
• Credit scores will indicate only late payments and after sale the property will show paid or negotiated, which may lower credit scores as little as 50 points if all other payments are made and credit score dips can be limited to 18 months.
• A short sale is not reported on credit history like a foreclosure, it will show paid or settled.
• Most Security Clearances will not be challenged.
• In some cases the lender can be convinced to give up the right to pursue a deficiency judgment (bank loss).

Armed with this information, it is easy to see why you would want to sell your property prior to foreclosure by gaining insight from expert REALTOR with the proper Short Sale training.  Be ready to step through a streamlined process that will enable you or your friends to move out from a difficult financial situation.  Take action now!  Call me or another Certified Distressed Property Expert.  Time is critical to avoid a foreclosure!

Delaware Township in Fishers finally broke ground on a 13,000 square foot community center that Trustee Debbie Driskell began planning in 2005.

This $2.8 million project will include event space for up to 300 people.  Driskell says it will be affordable for families and clubs, but prices have not been set. 

The building will be just north of the Delaware Township Government Center, located at 9090 E. 131^st Street.  Construction will not begin for several weeks.

The center will cost township taxpayers one cent per $100 of assessed valuation.  That amounts to an $8 increase, assuming standard deductions, for a family with a $150,000 home. 

“We believe the community has expressed the need to us for a long time,” Driskell said. “Although we live in a fairly affluent county, there are still many of us who cannot afford a country-club reception.”

WWW.SendOutCards.com/Indiana will grow your business

In real estate as in any service industry, the absolute best way to grow your business is by providing clients with a great quality experience and then have them tout your capability to their friends, family, and anyone that values their opinion; a referral.  The proven way to gain referrals is by showing you care about them and staying in regular contact.  The least expensive, most rewarding, and possibly the most effective is a personal note. 

By the way, notes have a dramatic impact on your personal life as well.  I once heard about President Bush Senior and how he felt that a large contributor of his personal and professional rise through his career was his habit of writing personal notes. 

Many people don’t write personal notes because it is a bit of a hassle.  They are losing out on incredible opportunities!  I have recently discovered and currently use the best product and system for personal notes!  Go to the web at WWW.SentOutCards.com/Indiana . It proves to be easy, inexpensive, automated, and effective. At this site you will be able to systematically pick a predesigned card or add photos and make your own on the Internet.  Type a private message in your own handwriting font (if you prefer),  click on a name from your database which will automatically create the envelope, and hit the send button where it will be sent directly from the printing company with an actual first class stamp.  Add a gift card or other gifts such as brownies with another click.  This is truly a system that provides the handwritten effect with a huge time savings with cards costing a fraction of the price.  No more driving to the shopping center, post office, etc. 

I have arranged for the first 10 people to receive 1 free card to try out the system.  The link above will let you sign up where you can choose at least 2 (non-picture) cards or 1 picture card (postage included), your choice. 

Check it out.  You won’t be disappointed.

The Fishers Police Department will host a “Citizens Police Academy” for residents that live within the Hamilton Southeastern School District. The Citizens Academy is scheduled for 12 weeks and offers “police style” training to our citizens. Some of the training that has been scheduled include: Crime Prevention/Neighborhood Watch, Bicycle Patrol, Criminal Law, Police Canine, Traffic Stops, Weapons Familiarization, Self Defense, Criminal Investigations, Evidence Collection, and Narcotics. Participants in the Citizens Academy will also complete a ride along with an on duty Fishers Police Officer.

The 16th Class of the Citizens Academy will be held at the Fishers Police Department every Tuesday night starting at 6 p.m. and ending at 9 p.m. This Citizens Academy has been scheduled to begin March 3. The instructors will be police officers from the Fishers Police Department. The academy will be open to individuals who reside or are employed in the Hamilton Southeastern School District. You must be sixteen years old or older to participate in the Citizens Academy.

It is our goal to build on the relationships we have established in the community. The Citizens Academy will consist of classroom and hands on training that will allow citizens to interact and become more familiar with the tasks that are assigned to a police officer. The Citizens Academy will give community members the opportunity to ask questions about law enforcement and other related activities. For enrollment information please contact Officer Jamie Alvis at alvisj@fishers.in.us , (317) 595-3300 ext. 8132 or visit our website www.fishers.in.us/police

Source:  IndyStar.com  Information provided by Sergeant Gerry Hepp, the public information officer for the Fishers Police Department.

A Fishers study committee consisting of nearly fifty members will determine the pros and cons of the town of Fishers becoming a city.

An announcement was made Tuesday by Town Council members that 44 people have been chosen to research the options and inform the town.  The committee may make a recommendation if the data is conclusive enough.

The town of Fishers continues to look for a moderator to assist the committee.  Town leaders hope to find a moderator by the end of the week so the committee can set its first meeting date.  The committee will then determine how often it meets and the plan of action.

Eight committee members were selected by the Fishers Chamber of Commerce and four were appointed from the CityYes political action committee which supports the change.  The remaining members were chosen from a pool of about 80 applicants.

CityYes has been collecting signatures in attempt to get a referendum on the ballot that would give voters the ability to choose their form of government and officials say a special election could be held sometime this year.

Fishers and Carmel will have their community tree lightings this Saturday, the weekend before Thanksgiving.

Fishers:  6:30 to 8.p.m. Saturday. Town Hall, 1 Municipal Drive. Includes costumed Dickens carolers, music from the Fishers High School choirs and cookies and punch. Free. (317) 578-0700 or www.fisherschamber.com.

Carmel:  4:30 to 6:30.p.m. Saturday. 1 Civic Square. Lighting of the Giving Tree and holiday lights is at dusk or approximately 5:45 p.m. Jugglers, carolers, balloon artists, reindeer and other North Pole animals. Holiday entertainment provided by Clay Middle School Choir, Carmel Symphony Orchestra Brass Quintet and Central Indiana Dance Ensemble. Refreshments provided by the CFD Auxiliary. First 400 children will receive goody bags. In event of rain, held at the Carmel Fire Department Headquarters Fire Bay. Bring unwrapped gifts, no plush toys, for the Gazebo Giving Tree. Free. (317) 571-2400.

Source:  IndyStar.com

Cleveland based developer Fairmount Properties backed out of the $100 million Fishers Town Center deal, initiated a year ago, because of the struggling economy. The project included several hundred thousand square feet of office, retail and residential space off of 116^th Street on the west side of I-69.  The developer was unable to acquire about 125 properties needed before it could begin construction.

Town officials will hold a three-hour meeting Dec. 11 at the Fishers Public Library to hear opinions on what residents would like included in plans for the development. Two other meetings will be in January. The town could then change existing plans or consider scrapping the project.

For more information, click here.