Thursday, September 9, 2010
Tuesday, September 7, 2010
Thursday, October 1, 2009
Sunday, August 30, 2009
Wednesday, January 7, 2009
Indianapolis Area Home Buyers Beware - A Deal Could Cost You Thousands
I hope the title grabbed your attention. As a full time real estate agent in the Indianapolis Area, almost every buyer I talk to today starts the home buying process looking for a "deal" on a home. While the concept sounds great, it is hard to put into practice for a few reasons and can actually be detrimental to your long term financial health. Hopefully this information will help.
Defining a Deal: Everyone has a different definition of that term. Universally it seems to involve spending less or getting something cheaply. The challenge is that no homes are created equally. If nothing else they are always on a different piece of property. Spending less may just be getting less. Hence the first challenge or risk in only seeking a deal.
Define Your Wants and Needs First: Every home search should start by clearly understanding your wants and needs. When working with buyers, I always meet with buyers and work together with them on a needs analysis prior to looking for a home. I would recommend that a buyer never buys a home that fails to meet their wants and needs.
Why is a Home Underpriced? Homes are rarely "underpriced". The few that are sell very quickly. If a home price seems too good to be true, you (and your agent) should start asking questions. Some good questions would be:
When Negotiating Never Use a List Price: All too often I hear buyers say they would never pay more than 90% of a list price or something to that effect. When buying a home, never, never, never use the list price as a benchmark for an offer. The reason for this is simple...a list price is a sellers wish and may be unrelated to reality. Some sellers choose to price their homes aggressively (close to comps) while others insist on pricing their properties way too high. For these reasons offers should be based on comparable sales, the condition of the property compared to these comparable sales and the current competition, and current market conditions. Put in place a negotiating strategy with your agent which takes into account these factors and your home buying goals.
The great news is that with proper planning and market knowledge, Indianapolis area buyers can definitely get good value on a home today. Start by defining choosing an agent who will help you define your wants and needs, and narrow your focus to the areas you want to live. If a home meets this criteria and is a place you would enjoy living, that is the best "deal" in real estate!
Defining a Deal: Everyone has a different definition of that term. Universally it seems to involve spending less or getting something cheaply. The challenge is that no homes are created equally. If nothing else they are always on a different piece of property. Spending less may just be getting less. Hence the first challenge or risk in only seeking a deal.
Define Your Wants and Needs First: Every home search should start by clearly understanding your wants and needs. When working with buyers, I always meet with buyers and work together with them on a needs analysis prior to looking for a home. I would recommend that a buyer never buys a home that fails to meet their wants and needs.
Why is a Home Underpriced? Homes are rarely "underpriced". The few that are sell very quickly. If a home price seems too good to be true, you (and your agent) should start asking questions. Some good questions would be:
- If this floorplan currently desirable or functionally obsolete?
- Is the home in good repair.
- If the home needs structural work completed, what is the cost of repairing the home and how will you pay for the repairs?
- Do you have the time and the expertise necessary to ensure the work is completed properly? And lastly is the home in a desirable area and is there anything planned for that area which could negatively effect future values?
When Negotiating Never Use a List Price: All too often I hear buyers say they would never pay more than 90% of a list price or something to that effect. When buying a home, never, never, never use the list price as a benchmark for an offer. The reason for this is simple...a list price is a sellers wish and may be unrelated to reality. Some sellers choose to price their homes aggressively (close to comps) while others insist on pricing their properties way too high. For these reasons offers should be based on comparable sales, the condition of the property compared to these comparable sales and the current competition, and current market conditions. Put in place a negotiating strategy with your agent which takes into account these factors and your home buying goals.
The great news is that with proper planning and market knowledge, Indianapolis area buyers can definitely get good value on a home today. Start by defining choosing an agent who will help you define your wants and needs, and narrow your focus to the areas you want to live. If a home meets this criteria and is a place you would enjoy living, that is the best "deal" in real estate!
Tuesday, December 9, 2008
Fear and Money in Indianapolis
A few weeks ago I decided it was time for a new vehicle. My previous experiences with auto loans is that they were relatively easy, generally taking 5 minutes to apply and another 5 minutes to complete the paperwork. On my way to the dealership I found myself nervous about applying for the loan this time. In fact I was so convinced I wouldn't qualify that I almost didn't go to the dealer at all.
I eventually went to the dealer anyway, found the vehicle of my choice and apprehensively made the loan application. The loan approval was granted in less than 5 minutes again and at great interest rate! Better yet, I negotiated a fantastic price for my new vehicle.
Fear nearly prevented me from buying my new vehicle. As I contemplated the source of this fear I realized it was media driven. As a professional I work diligently to separate media hype from facts and yet there it was...I've heard so much about the collapsing banking industry that I was worried I would no longer qualify.
How does this story relate to real estate? In telling this story to a few other agents and industry professionals at a networking event I heard the same response over and over. Many potential home buyers were avoiding the loan application process out of the same fear. In an attempt to dispel the fear, here are the facts about real estate and home loans right now:
I eventually went to the dealer anyway, found the vehicle of my choice and apprehensively made the loan application. The loan approval was granted in less than 5 minutes again and at great interest rate! Better yet, I negotiated a fantastic price for my new vehicle.
Fear nearly prevented me from buying my new vehicle. As I contemplated the source of this fear I realized it was media driven. As a professional I work diligently to separate media hype from facts and yet there it was...I've heard so much about the collapsing banking industry that I was worried I would no longer qualify.
How does this story relate to real estate? In telling this story to a few other agents and industry professionals at a networking event I heard the same response over and over. Many potential home buyers were avoiding the loan application process out of the same fear. In an attempt to dispel the fear, here are the facts about real estate and home loans right now:
- There are Mortgages Available with Great Terms for Most Buyers
- Interest Rates are VERY Low
- There are Unbelievable Deals Available on Homes
- This is a Fantastic Time to Buy a Home
If you're considering buying a home in the Indianapolis area, The Matt Borushko Team can help by answering any questions you have about our housing market, and can provide referrals to reputable loan officers. If you're ready to start searching for your dream home, we can also provide a daily email list of homes as they hit the market for free at http://www.newestindylistings.com/
See also: http://www.mattsellsindy.com/ for buyer resources to help you prepare for your next home purchase
Sunday, December 7, 2008
Tips for Buying a Home From a Builder
Indianapolis area real estate agent Matt Borushko provides these tips for buying a home with a builder:
Building a home can be a great experience...or a nightmare. As a local real estate agent I often see the long term effects of decisions made by people choosing to build a home. My past also includes 10 years as a new home sales consultant with both local and national builders. With this experience many of my clients build new homes with great success. With that in mind here are a few tips to help you should you decide to build:
Have Representation: Hire an agent to represent you during the building process who has experience with builders. I know what you're thinking, of course I'll say that as an agent. However with 10 years experience I can tell you that the majority of poor decisions were made by people without representation. The easiest way to say it is that you don't know what you don't know. Also a good agent can help you save money through better choices and stronger negotiation positions.
Don't Overbuild: Do your research and be careful not to build a home that you can't resell. Before you build, make sure you know what style of homes, what upgrades, and what price ranges are typical in the area you've chosen. When you know this information make sure the home you're building fits in to this niche. Again your local real estate expert can do the legwork for you.
Prioritze your Choices: When it is time to decide what to put into your house, prioritze your list of selections. Make sure you select the items that cannot be done at a latter time first. For example a garden or deluxe bath often changes the basic structure of the floorplan and cannot be done later, so this selection becomes much more important than flooring that can be done at a later date. Also make sure you can live with your last minute cuts...I've seen too many people cut out the "full basement upgrade" at the very last minute only to regret it later. That extra square feet is often the storage you need when your family grows or the place for that full bathroom and wouldn't cost much up front.
Choose Location Wisely: Location, location, location. Where you build your home matters. The area of town, the neighborhood, the homesite you choose all make a huge difference. The right homesite will allow you to enjoy your home, and will also benefit you by allowing you to sell your home for more money later. Pay particular attention to the school districts in your area. Better school systems almost always correlate to better resale.
Financing: Get approved before you go to a builder. The approval will definitely help your negotiating position as well as help you know and understand your options. Builders will often pay your closing costs if you choose their lender but the rates are often much higher. Plus you may be giving up some of your much needed seperation.
Have Proper Expectations: No home is perfect. If you choose to build you need to understand that mistakes will be made and there will be some material defects. Good builders understand this and have systems in place to address and correct these issues as they arise. Everything in a home can be fixed if addressed in a timely fashion. We would be happy to recomend you to a great builder with these systems in place.
Buying from a builder and building a home can be a great experience. Hiring an experienced agent can provide you with needed representation, helps make the building process more smooth and predictable, and can save you money in both the short and long term. If you're considering building a home in the Indianapolis area, contact us and put our experience to work for you!
Building a home can be a great experience...or a nightmare. As a local real estate agent I often see the long term effects of decisions made by people choosing to build a home. My past also includes 10 years as a new home sales consultant with both local and national builders. With this experience many of my clients build new homes with great success. With that in mind here are a few tips to help you should you decide to build:
Have Representation: Hire an agent to represent you during the building process who has experience with builders. I know what you're thinking, of course I'll say that as an agent. However with 10 years experience I can tell you that the majority of poor decisions were made by people without representation. The easiest way to say it is that you don't know what you don't know. Also a good agent can help you save money through better choices and stronger negotiation positions.
Don't Overbuild: Do your research and be careful not to build a home that you can't resell. Before you build, make sure you know what style of homes, what upgrades, and what price ranges are typical in the area you've chosen. When you know this information make sure the home you're building fits in to this niche. Again your local real estate expert can do the legwork for you.
Prioritze your Choices: When it is time to decide what to put into your house, prioritze your list of selections. Make sure you select the items that cannot be done at a latter time first. For example a garden or deluxe bath often changes the basic structure of the floorplan and cannot be done later, so this selection becomes much more important than flooring that can be done at a later date. Also make sure you can live with your last minute cuts...I've seen too many people cut out the "full basement upgrade" at the very last minute only to regret it later. That extra square feet is often the storage you need when your family grows or the place for that full bathroom and wouldn't cost much up front.
Choose Location Wisely: Location, location, location. Where you build your home matters. The area of town, the neighborhood, the homesite you choose all make a huge difference. The right homesite will allow you to enjoy your home, and will also benefit you by allowing you to sell your home for more money later. Pay particular attention to the school districts in your area. Better school systems almost always correlate to better resale.
Financing: Get approved before you go to a builder. The approval will definitely help your negotiating position as well as help you know and understand your options. Builders will often pay your closing costs if you choose their lender but the rates are often much higher. Plus you may be giving up some of your much needed seperation.
Have Proper Expectations: No home is perfect. If you choose to build you need to understand that mistakes will be made and there will be some material defects. Good builders understand this and have systems in place to address and correct these issues as they arise. Everything in a home can be fixed if addressed in a timely fashion. We would be happy to recomend you to a great builder with these systems in place.
Buying from a builder and building a home can be a great experience. Hiring an experienced agent can provide you with needed representation, helps make the building process more smooth and predictable, and can save you money in both the short and long term. If you're considering building a home in the Indianapolis area, contact us and put our experience to work for you!
Friday, December 5, 2008
Indianapolis Area Home Sellers: Compete with Short Sales and Foreclosures!
Selling a home in any market can be a trying experience. Today you are competing with many possible short sales and foreclosures who can list and sell their homes for a lower price than you can afford. The good news to sellers is that there are things you can do to compete with and beat this competition! Here are a few things you can do as sellers to compete with short sales and foreclosures:
Make Sure Your Home is in Top Condition: Most short sales and foreclosures are in less than stellar condition. They tend to be dirty, need minor or major structural work, need cosmetic updating, etc. This work takes both time and cash, both of which are in short supply today. Make sure your home is clean, and that you've addressed possible cosmetic and structural issues. Your local real estate expert can help you identify which issues to address and provide top notch subcontractor names to help get the work done! Homes in pristine condition are getting top dollar and selling quickly even in todays market!
Stage your home to Sell: After you have made the committment to sell your home, now you need to get it ready for a buyer...it is no longer your home. Help potential buyers feel welcome by removing personal items, any religous references, and removing any and all unneccesary items from your home. Buyers won't feel they are invading "your" space, the rooms will feel larger, and buyers will naturally spend more time in the home. If when you are done staging your home it no longer feels like "your" home you are on the right track. Becki Borushko of the Borushko Team is a certified home stager, one of the many services we provide for our sellers in Indianapolis
Be Responsive to Offers: Short sales can take a long time to complete. Often the banks will take 90-120 days or longer to even respond to an offer. While there are laws being written to change this practice, they aren't in effect yet. You can easily compete with short sales simply by being responsive to offers as they come in. Also be very flexible with closing and possesion dates. Most buyers don't have the luxury of waiting for a response or waiting a long period of time to move in so be flexible!
Provide Financial Flexibility: Providing legal financing incentives can often be more valuable to a buyer than bottom line price and can certainly put you at a negotiating advantage over short sales and foreclosures. Consider offering to pay a buyers closing costs and more buyers will be able to purchase your home. Also note that most short sales and foreclosure are sold as-is (read buyer beware!) so being more flexible in your willingness to pay for items found on an inspection can make a huge difference to your potential buyers.
See also:
Foreclosures, Short Sales, and their effect on Home Values
Make Sure Your Home is in Top Condition: Most short sales and foreclosures are in less than stellar condition. They tend to be dirty, need minor or major structural work, need cosmetic updating, etc. This work takes both time and cash, both of which are in short supply today. Make sure your home is clean, and that you've addressed possible cosmetic and structural issues. Your local real estate expert can help you identify which issues to address and provide top notch subcontractor names to help get the work done! Homes in pristine condition are getting top dollar and selling quickly even in todays market!
Stage your home to Sell: After you have made the committment to sell your home, now you need to get it ready for a buyer...it is no longer your home. Help potential buyers feel welcome by removing personal items, any religous references, and removing any and all unneccesary items from your home. Buyers won't feel they are invading "your" space, the rooms will feel larger, and buyers will naturally spend more time in the home. If when you are done staging your home it no longer feels like "your" home you are on the right track. Becki Borushko of the Borushko Team is a certified home stager, one of the many services we provide for our sellers in Indianapolis
Be Responsive to Offers: Short sales can take a long time to complete. Often the banks will take 90-120 days or longer to even respond to an offer. While there are laws being written to change this practice, they aren't in effect yet. You can easily compete with short sales simply by being responsive to offers as they come in. Also be very flexible with closing and possesion dates. Most buyers don't have the luxury of waiting for a response or waiting a long period of time to move in so be flexible!
Provide Financial Flexibility: Providing legal financing incentives can often be more valuable to a buyer than bottom line price and can certainly put you at a negotiating advantage over short sales and foreclosures. Consider offering to pay a buyers closing costs and more buyers will be able to purchase your home. Also note that most short sales and foreclosure are sold as-is (read buyer beware!) so being more flexible in your willingness to pay for items found on an inspection can make a huge difference to your potential buyers.
See also:
Foreclosures, Short Sales, and their effect on Home Values
The Indianapolis Area Food Banks Need Your Help!
I ran across this article a few minutes ago and felt it was worth passing along. I know this is a trying time for many...please help if you can.
Helping the hungry
Midwest Food Bank says donations,volunteers low
Last Edited: Tuesday, 02 Dec 2008, 6:39 AM ESTCreated On: Tuesday, 02 Dec 2008, 6:08 AM EST
Phil Sanchez
Edited by Heather Chastain
INDIANAPOLIS (WISH) - The slipping economy is taking a toll on various industries and businesses, including local food banks. Most are reporting big drop offs in donations lately.
Managers at the Midwest Food Bank say the drop off in donations couldn't have come at a worse time, a time when demand is great but resources are low.
The Midwest Food Bank is not by any means the typical food bank. Instead of serving people individually they supply different agencies, hundreds of other food banks with needs greater than ever before.
"There's a great increase of need in the community and the need has changed. It used to be the homeless and now it's your neighbor and so the face of the hungry has really changed in America and especially in central Indiana," said John Whitaker, Midwest Food Bank.
He says not only have donations been down, but so have the number of volunteers.
"Many months we'll have more food but not enough volunteers," said Whitaker.
However, he said things are starting to pick up especially since Mayor Ballard last month announced a food bank initiative to help.
"We've had about 6 or 7 organizations that have stepped up not just with food donations, but also with volunteering," said Whitaker.
However, the effort is still nowhere near enough. In the back of the pantry is a room designed to help those effected by disasters. These days the room gets used more and more.
"What we have now in America is people have lost their jobs or have been downsized and they have personal disasters now," said Whitaker.
Click one of the following links for more information on either the Mayor's initiative or how you can help The Midwest Food Bank .
Helping the hungry
Midwest Food Bank says donations,volunteers low
Last Edited: Tuesday, 02 Dec 2008, 6:39 AM ESTCreated On: Tuesday, 02 Dec 2008, 6:08 AM EST
Phil Sanchez
Edited by Heather Chastain
INDIANAPOLIS (WISH) - The slipping economy is taking a toll on various industries and businesses, including local food banks. Most are reporting big drop offs in donations lately.
Managers at the Midwest Food Bank say the drop off in donations couldn't have come at a worse time, a time when demand is great but resources are low.
The Midwest Food Bank is not by any means the typical food bank. Instead of serving people individually they supply different agencies, hundreds of other food banks with needs greater than ever before.
"There's a great increase of need in the community and the need has changed. It used to be the homeless and now it's your neighbor and so the face of the hungry has really changed in America and especially in central Indiana," said John Whitaker, Midwest Food Bank.
He says not only have donations been down, but so have the number of volunteers.
"Many months we'll have more food but not enough volunteers," said Whitaker.
However, he said things are starting to pick up especially since Mayor Ballard last month announced a food bank initiative to help.
"We've had about 6 or 7 organizations that have stepped up not just with food donations, but also with volunteering," said Whitaker.
However, the effort is still nowhere near enough. In the back of the pantry is a room designed to help those effected by disasters. These days the room gets used more and more.
"What we have now in America is people have lost their jobs or have been downsized and they have personal disasters now," said Whitaker.
Click one of the following links for more information on either the Mayor's initiative or how you can help The Midwest Food Bank .
National Housing Trends November 2008
The Matt Borushko Real Estate Team would like to share with you a video with some interesting views on the outlook of the national real estate market.
In this video, Dave Jenks and Jay Papasan or Keller Williams Realty discuss real estate trends, market statistics, and the impact of the economy on home buying and selling. This video looks at how the real estate market is creating more affordability and heading toward a balanced market.
To learn about local market trends and house prices in the Indianapolis area, please contact the Borushko Team via email matt@mattsellsindy.com
In this video, Dave Jenks and Jay Papasan or Keller Williams Realty discuss real estate trends, market statistics, and the impact of the economy on home buying and selling. This video looks at how the real estate market is creating more affordability and heading toward a balanced market.
To learn about local market trends and house prices in the Indianapolis area, please contact the Borushko Team via email matt@mattsellsindy.com
Short Sales, Foreclosures, and Their Affect on Home Values
Short Sales and foreclosures are a part of our current real estate market. As a potential buyer or seller, it is vital to understand what they are and their impact on real estate in your area.
Short sales: Short sales are transactions in which a seller sells a home for less than owed on the property. Short sales are not bank owned properties, however a bank has to approve the sale prior to closing for a short sale to occur. Sellers may have to attempt to sell a home "short" for many reasons such as declining home values, poor lending practices, or unforeseen circumstances.
Foreclosures (or REO's): Foreclosures are bank owned properties. A foreclosure takes place after a home is surrendered to a financial institution after a long and lengthy legal process. Once this occurs the home than becomes a REO (Real Estate Owned) and is generally offered for sale to the public in the form of a sheriff sale or on the local MLS.
Effect on Home Values: Both of these types of properties have a negative impact on home values in an area. The simple reason for this is that they are competing with sellers for a limited number of buyers. The amount of impact varies but is usually dependant on how many of these properties are listed or have been sold in an area. If a builder practiced or pushed poor lending practices to a number of buyers in a neighborhood for example, there is usually a delayed but absolute effect on home values while the neighborhood struggles through an imminent foreclosure cycle. In these instances, home values plummet and everyone is affected.
The good news is that in many cases these distressed properties have little or no effect on their homes' value. Potential sellers can go to http://www.indyhomevalues.com/ to receive a free market analysis for their Indy Metro area home.
Buyers in the Indianapolis Metro area can go to http://www.newestindylistings.com/ and get all new foreclosure and short sale listing sent directly to their email. When you are on the site make sure you indicate you want short sale or foreclosure listings in the comments section!
Matt Borushko is an agent with Keller Williams Realty in Carmel Indiana. Matt can easily be reached through his website at http://www.mattsellsindy.com/
Short sales: Short sales are transactions in which a seller sells a home for less than owed on the property. Short sales are not bank owned properties, however a bank has to approve the sale prior to closing for a short sale to occur. Sellers may have to attempt to sell a home "short" for many reasons such as declining home values, poor lending practices, or unforeseen circumstances.
Foreclosures (or REO's): Foreclosures are bank owned properties. A foreclosure takes place after a home is surrendered to a financial institution after a long and lengthy legal process. Once this occurs the home than becomes a REO (Real Estate Owned) and is generally offered for sale to the public in the form of a sheriff sale or on the local MLS.
Effect on Home Values: Both of these types of properties have a negative impact on home values in an area. The simple reason for this is that they are competing with sellers for a limited number of buyers. The amount of impact varies but is usually dependant on how many of these properties are listed or have been sold in an area. If a builder practiced or pushed poor lending practices to a number of buyers in a neighborhood for example, there is usually a delayed but absolute effect on home values while the neighborhood struggles through an imminent foreclosure cycle. In these instances, home values plummet and everyone is affected.
The good news is that in many cases these distressed properties have little or no effect on their homes' value. Potential sellers can go to http://www.indyhomevalues.com/ to receive a free market analysis for their Indy Metro area home.
Buyers in the Indianapolis Metro area can go to http://www.newestindylistings.com/ and get all new foreclosure and short sale listing sent directly to their email. When you are on the site make sure you indicate you want short sale or foreclosure listings in the comments section!
Matt Borushko is an agent with Keller Williams Realty in Carmel Indiana. Matt can easily be reached through his website at http://www.mattsellsindy.com/
Eleven Reasons to List Your Home for the Holidays
Before you decide to wait until spring to list your home, the Matt Borushko Team of Keller Williams Realty offers these Eleven Reasons to List Your Home During the Holidays
1. People who look for a home during the holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the holidays and less competition means more money for you
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means less money for you.
4. Houses show better when decorated for the holidays!
5. Buyers are more emotional during the holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a homeduring the holidays than they do during a normal work week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wiat until spring to buy, you must be on the market now to capture thise buyers!
9. You can still be on the market, but you do have the option to restrict showings during the six or seven days during the holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
11. By selling now, you may have an opportunity to be a non-contingent buyer in the spring when many more houses are on the market for less money. This will allow you to sell high and buy low!
The Matt Borushko Team is here to help you with any of your real estate needs even during the holidays. Please feel free to visit us on the web at www.mattsellsindy.com at any time!
See also Six Tips to Selling Your Home in a Down Market
1. People who look for a home during the holidays are more serious buyers!
2. Serious buyers have fewer houses to choose from during the holidays and less competition means more money for you
3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means less money for you.
4. Houses show better when decorated for the holidays!
5. Buyers are more emotional during the holidays, so they are more likely to pay your price!
6. Buyers have more time to look for a homeduring the holidays than they do during a normal work week!
7. Some people must buy before the end of the year for tax reasons!
8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wiat until spring to buy, you must be on the market now to capture thise buyers!
9. You can still be on the market, but you do have the option to restrict showings during the six or seven days during the holidays!
10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!
11. By selling now, you may have an opportunity to be a non-contingent buyer in the spring when many more houses are on the market for less money. This will allow you to sell high and buy low!
The Matt Borushko Team is here to help you with any of your real estate needs even during the holidays. Please feel free to visit us on the web at www.mattsellsindy.com at any time!
See also Six Tips to Selling Your Home in a Down Market
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