WHAT’S IT WORTH?

Type: Traditional        

Age:   Built in 1994

Location:   Near Morse Reservoir

Neighborhood:   Carrigan Cove is a custom home community with mature trees. 

Square footage:  4086 including 1377 in the finished basement

Rooms:   This four-bedroom home has three-and-a-half baths, open kitchen and family room combination, formal living and dining rooms, finished basement and three-car garage. 

Strengths:  This is a custom home for only $270,000.  It has a unique stucco exterior, large yard, and new carpet and paint. 

Challenges:  According to the Metropolitan Indianapolis Board of Realtors, there is currently a 12 month inventory for homes in this price range in Noblesville. 

WHAT’S IT WORTH?    $270,000

You may be surprised to know that taking advantage of current favorable interest rates on the purchase of a $300K home (30 years) after the tax incentive program was actually a great business decision.  Compare the monthly payments of the available rates earlier in 2010 at the annual rate of 5.125% to the more recent rates now of 4.75%.  The difference in the total payment over the life of the 30 year loan is $22,320.  At this price range we’ll utilize the smaller of the two tax credits since this buyer was not likely a first time buyer.  Missing the $6,500 government tax credit was a blessing in disguise.  You would have made $15,820.  This is one case where procrastination paid dividends.

Type:  Traditional

Age:  Built in 1998

Location:  Near 131^st Street and Hazel Dell Parkway

Neighborhood:  Brooks Landing at Prairie View is an exclusive neighborhood adjacent to Prairie View Golf Course and the White River and offers a clubhouse, community pool and tennis courts.

Square footage:  This home has 4996 square feet including 1338 in the finished basement.

Rooms:  This four-bedroom four-and-a-half bath home has a gourmet kitchen with granite counter tops, a tumbled stone backsplash and custom cherry cabinets, a main floor office, sunroom, a basement with full bath, fireplace, theater area and exercise room and a three-car side-load garage.

Strengths:  This home is on a large wooded cul-de-sac lot with a park-like setting that backs up to the White River.  There are many upgrades including a nice trim package, crown molding throughout, hardwoods, new front door and fresh exterior paint.  It is surrounded by more expensive homes. 

Challenges:  Some buyers may prefer a more open kitchen and great room combination.  Storage space is somewhat limited.

WHAT’S IT WORTH?    $575,000

Tougher mortgage lender requirements and market conditions over the last year has changed the landscape of real estate.

A real estate short sale can take time, but can provide a good value to the patient buyer.

A short sale is one where the owner is not able to make up the difference financially between what a property will sell for after expenses and what is owed to the bank(s).  Banks will approve such a sale and take a financial loss now if the value offered is reasonable for today’s market in order to prevent future losses due to delinquent payments and costly foreclosure proceedings.  The seller must have a credible hardship.  The buyer must have patience.  Due to new guidelines, bank response times will be improving.

Banks have become tougher on loans. 

The good news is that loans banks are approving now will have a lower failure rate compared to just two years ago.  The banks have insulated the appraisal process, increased buyer credit rating requirements, and have been downright picky on stipulations that were overlooked in the past.  Money is still available for people to purchase a home, though not as many.  The byproduct of banking loan restrictions has been a robust demand for single family home rentals.  The buyers that are out of the market to purchase due to a blemish on the credit report still want a home are willing rent for a year or two.  Keep in mind with the new property tax laws, rental home tax rates (2% tax cap max.) can be double that of a neighboring home that is owner occupied.  The rental rate may trend up due to this extra cost.

As a real estate professional, I’ve opened up a toolbox of different strategies to accomplish the goal of buyers and sellers.  We have negotiated a sale with a bank while they fixed a foreclosed home, worked out a sale with a one year closing date, strategized with options on properties,  bought property with a personal retirement account fund, and saved years of seller’s financial hardship by negotiating short sales.  Due to the unusual market provided this past year, I feel more even more educated to be able to provide buyers and sellers valuable insight gleaned through our experiences.

Type:  Ranch with Bonus Room

Age:   Built in 2001

Location:   Near 156^th Street and Springmill Road             

Neighborhood:   Mulberry Farms is a quiet community with a large central pond and playground.

Square footage:  1728

Rooms:   This three-bedroom home has two full baths, a large great room with vaulted ceilings, kitchen with new stainless appliances, main floor master suite and upstairs bonus room. 

Strengths:  This home has updated attractive décor and sits on nearly half an acre.  Many other ranch style homes in Westfield are older and more dated compared to this newer, more modern home. 

Challenges:  This home backs up to 156^th Street but the large lot and trees help to create a barrier.  

WHAT’S IT WORTH?    $180,000

Type:  Luxury Home

Age:   Built in 2001

Location:   Near 106^th and Towne Road

Neighborhood:   Windermere is a premier neighborhood with luxury homes, large lots and mature trees.

Square footage:  9275 including 3904 square feet in the finished basement

Rooms:   This five-bedroom home has a gourmet kitchen overlooking the hearth room, impressive great room, main floor library, master suite with spa-like master bath, six full baths, two half baths, and a lower level with wet bar, wine cellar and state of the art theater room.

Strengths:  This home has all the bells and whistles and boasts top of the line features.  It is located on a large lot overlooking a plush golf course.  If history repeats itself, this home will result in a successful sale since it has been sold twice in the last ten years. 

Challenges:  The price range of this home will limit the amount of potential buyers.  According to the Metropolitan Indianapolis Board of Realtors, there is currently over a year of inventory in this price range in Carmel. 

WHAT’S IT WORTH?    $1,600,000

Type:  Ranch

Age:   Built in 1997 

Location:   Near Carmel Drive and Guilford Road 

Neighborhood:   Carmel Station 

Square footage:  2023 including 867 in the finished basement 

Rooms:   This three-bedroom home has a split floor plan with modern décor, great room with gas fireplace and built-ins, laminate flooring throughout the main level, finished basement with wet bar and versatile office area, and two-car garage.  

Strengths:  The ranch style home appeals to buyers looking for a main floor living space.  This home is located right in the heart of Carmel just minutes from the Monon Trail and the new Palladium opening in 2011. This is one of two homes on the market in Carmel between $150,000-200,000 built in the last 20 years with a basement. 

Challenges:  The 40 foot wide lot may feel small to those wanting a large private yard, however, there is very little yard maintenance involved.

WHAT’S IT WORTH?    $170,000

Type:  Ranch

Age:   Built in 2001

Location:   Near 146^th Street and Spring Mill Road

Neighborhood:   Centennial is a large neighborhood with a swimming pool, playground, basketball court, sledding hill, soccer fields, tennis court, and walking trails.

Square footage:  3179 including 1297 in the finished basement

Rooms:   This two-bedroom two-bath home has a main floor den, great room with wood-burning fireplace, formal dining room, full finished basement with a large recreation area, and two-car garage.

Strengths:  There is a full finished basement.  The property is immaculately landscaped and has a built-in sprinkler system and large covered porch.  This home is located directly across from a huge park. 

Challenges:  There are only two bedrooms but the office can be transformed into a third bedroom with the addition of a closet. 

WHAT’S IT WORTH?   $250,000

This activity is leading to more Fishers, Carmel, and Indianapolis home sales, which I expect to continue through April 30th at a minimum. We keep track of home inventory on a monthly basis breaking down homes for each price level for many areas around Indianapolis. What I am seeing is a very healthy inventory level (below 6 months) for sellers and buyers at median and below price points. As the price increases, the inventory levels jump and there is much more pressure on seller’s—buyer’s have the upper hand in negotiation and quality of product for their money. The price point where the homes are typically discounted depends on where the home is located. For example, Lawrence Township home inventory can vary greatly from Fishers, which will affect the price you can get for a property. That said, there are sporadic good deals in all price ranges due to distress sales. Email John@JohnPacilio.com with questions on your specific area.

Over 70% of my real estate business in Carmel last year was a direct result of a customer or business referral. 

Here is a brief list of services that my clients have asked me to refer recently:

Home Builder

Painter

Locksmith

Carpet Installer

General Handyman

Cleaning Service

Home Insurance

Carpenter

Plumber

Electrician

Landscaper

Tree Trimmer

Concrete Specialist

Mortgage Lender

Title Company

Many of you, as business leaders, provide a valuable service to the local community.  Your livelihood is based upon utilizing your knowledge and skills in a focused area and offering that product to your customers in hope that they will tell all their friends about it. 

Start by giving another Carmel business a referral.  Inform your client of another business’s superior service.  The key is that you are absolutely sure that your client will have a  great experience.  If not, keep looking for another service provider.  Call the business so that they expect a contact from your client.  These businesses see you as a continuous source of referrals, which is a very good reason for keeping your client happy.  If you become a trusted adviser on where to go for great service, you are your client’s advocate and they will come back to you again and again.  Just yesterday, I was asked if I know a good and reasonable painter.  Since every home that I sell needs paint, you bet I can pull a list of people that I would expect to do a good job. 

Business referrals are incredibly valuable to your clients and a great way to grow your word-of-mouth business.  If you help people grow their business, they will help grow yours.  You will find this to be a profitable place to focus your time, money, and energy.