Indianapolis Real Estate News And Information From HomeToIndy.com

Last week, federal regulators seized mortgage lender Washington Mutual.   The Seattle-based thrift became the third 'big name' lender to close its doors since July, joining IndyMac and Lehman Brothers. In 2007, these 3 lenders represented about 10 percent of the mortgage market and their subsequent failures are confusing American homeowners. The most prevalent question:

If my mortgage lender fails, are my payments still due?

And the answer is an unequivocal 'yes'. If a mortgage lender is seized, goes bankrupt, or is otherwise closed, it doesn't change the terms of the bank's mortgages whatsoever -- just maybe the mailing address. This is because a mortgage (and its corresponding note) is a legal contract between the lender and the...

While packing and cleaning today, working around the movers, a couple of men knocked on the door. I opened the door, expecting it to be the new buyer for his inspection.

Instead, they were unrepresented homebuyers (no agent) who wanted to know if they could come in and view my home.

Of course you can't! I wasn't rude, I just wasn't going to allow two complete strangers into my home to look around. Regardless of whether my home is sold or not, they were not getting pass the threshold.

I wanted to take a minute to remind all home sellers; please do not let anyone into your home unless they have an appointment. I mean, really, who walks up to someones home and expects an open invitation?

I am assuming it is not your normal person and you certainly don't want an abnormal person waltzing through your home.

As a matter of preference, I recommend my home sellers don’t hang around when the buyer is performing a final walk-through. A final walk through is the buyers opportunity to ensure all requested repairs were completed and the home is in the same condition as it was when they wrote the offer.

Because of circumstances beyond my control (movers, moving trucks and the day the buyer chose), I had to be home when the buyers came through for their final inspection of my home. My REALTOR® did ask if I wanted them to come by, but…..Hey, I’m a big girl and besides that, I’m a REALTOR®; I know to just stay out of the way, give them the receipts for the repairs and let them inspect.

Well, not so fast there – I still have an emotional connection to this place I have called home and I know the work we have put into it. If they want to know how the pool works or what day the trash...

Are you thinking about buying or building a new custom home in the Indianapolis area? Come take a look a the custom home lots at Village of Heritage Hills in Avon and Brownsburg. 

They are celebrating their Grand Opening this week with 40% off lots.

If you haven’t been out to the Villages of Heritage Hills, let me tell you, this is some beautiful land. Gently rolling hills surrounded by 100 acres of nature and wooded home lots. Lots range in size from one-third acre to over one acre. This week, custom home lots are priced from $39,000 to $105,000.

Villages of Heritage Hills is conveniently located...

Not Like Any Other Day

Today was an early morning as I got my youngest daughter on a plane and now I sit here at the Indianpolis International Airport, waiting for my flight to join my daughter in Phoenix. It is a vacation of sorts. My son will fly in for the weekend, as we have one last hooray at our Phoenix home. If you remember, we were supposed to have that last blast back in January, but time got away and we didn’t put the house on the market until June.

A Home Sold

I intended to chronicle the details along the way – but somehow time passed and the specifics don’t seem quite as important. Yes, my husband and I had differences of opinion about the price, when to reduce the price and how to respond to the offer, once we received it. It was not all that exciting...

Earlier this year -- and for the first time in its history -- the FHA changed its funding fees and mortgage insurance structure. Effective October 1, 2008, it's repealing those changes. Partly to keep FHA home loans affordable, and partly to comply with new laws, the FHA is rolling back its up-front fees and ongoing mortgage insurance requirements and replacing them with new ones. The new up-front FHA fees are as follows:

• 1.750% : All purchase and 'standard'...

Put it 'in' the Market

Really, I mean that! Probably not the way you think I do, though! See, there’s a huge difference between putting your home on the market and placing it “in” the market. I’ve written before, not too long ago, actually, about pricing your Indianapolis home to sell. I honestly admit I do allow my clients to test the market “for a time”, especially if there are not enough comparable sales in their neighborhood or if they have an outstanding or unique home. I also let them know we must be ready to adjust the price based on activty, feedback and lack of offers. It rarely earns me bonus points, but I prefer honesty above all else and have walked away from listings I knew I had no chance of selling when the homeowner is stuck on their price.

A Current Example

So, why do I write this again? I have to tell this story;...

Starting tomorrow, the 2008 Home-a-Rama home show is open to the public. This years event is at The Willows in Zionsville.

Home-a-Rama is one of my favorite events. Not much more exciting than checking out what’s new in home design. Granted, the homes built for Home-a-Rama are higher end homes using the highest quality materials available, but who doesn’t love to tour these homes, even if only for decorating ideas.

I especially love the creativity in both builder and interior design. They really go all out on these homes.

Sign up to win a kitchen makeover or a weekend away. Talk to the builders and exhibitors at the show and above, all have a great time. For a preview of the neighborhood, click here. For event details and to see special features...

For the month of August, there were 33 homes sold and closed in Plainfield, compared with 27 homes sold in July.

The highest price home was $315,000. The lowest priced home sold was $38,000.

The average Plainfield home sold was a three bedroom, two bath with 1626 square feet.

The average Days on Market for homes sold was 78 days, down from 84 days last month.

There are currently 194 homes available for sale in Plainfield, which gives us an absorption rate of 5.87 months.

For the month of August, there were 42 homes sold and closed in Zionsville Indiana; compared to 44 homes sold in July.

The highest price home sold was $917,425.

The lowest priced home sold was $120,000.

The average Days on Market for homes sold was 113 days, down from 106 in July.

The average Zionsville home sold was a three bedroom, three bath with 2389 square feet and sold for $357,859.

There are currently 340 available homes for sale in Zionsville, which gives us an absorption rate of 8.0 months.

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Statistics were obtained from the Metropolitan Indianapolis Board of Realtors (MIBOR) data and are representative of ...

For the month of August, there were 125 homes sold and closed in Carmel, Indiana. There were 137 sold in July.

The highest price home was $950,000.

The lowest priced home sold was $50,000.

The average Days on Market for homes sold was 70 days, down from 76 days in July.

The average home sold in Carmel was three bedroom, three bath home with 2586 square foot.

There are currently 862 homes available for sale in Carmel, which gives us an absorption rate of 6.89 months.

Search All Carmel Indiana Homes for Sale

Statistics were obtained from the Metropolitan Indianapolis Board of Realtors (MIBOR) data and are representative of Indianapolis homes which were sold between 8/1/2008 and 8/31/2008. This data is reflective of homes which were listed...

For the month of August, there were 10 homes sold and closed in Traders Point, compared with 17 homes sold in July.

The highest price home was $725,000.

The lowest priced home sold was $68,000.

The average sold home in Trader’s Point was a three bedroom, three bath with 2701 square feet and an average price of $240,450.

The average Days on Market for homes sold was 112 days, up from 93 days last month.

There are currently 131 homes available for sale in Trader’s Point, which gives us an absorption rate of 13.1 months. 

Search Homes for Sale in Traders Point

For the month of August, there were 157 homes sold and closed in Fishers Indiana; one less than July.

The highest price home sold was $727,000.

The lowest priced home sold was $85,000.

The average Days on Market for homes sold was 65 days, up from 64 in July.

The average Fishers home sold was a three bedroom, two bath with 2198 square feet and sold for $208,964.

There are currently 786 homes available for sale in Fishers, which gives us an absorption rate of 5.0 months. 

Search all Fishers Homes for Sale

Statistics were obtained from the Metropolitan Indianapolis Board of Realtors (MIBOR) data and are representative of Indianapolis homes which were sold between 8/1/2008 and 8/31/2008. This data is reflective of homes which were listed on the Indianapolis...

For the month of August, there were 8 homes sold and closed in Danville.

The highest price home was $253,500.

The lowest priced home sold was $72,000.

The average Danville home sold was a three bedroom, two bath with 2008 square feet.

The average Days on Market for homes sold was 78 days.

There are currently 100 homes available for sale in Danville, which gives us an absorption rate of 12.5 months.

Search all Danville Homes for Sale 

Statistics were obtained from the Metropolitan Indianapolis Board of Realtors (MIBOR) data and are representative of Indianapolis homes which were sold between 8/1/2008 and 8/31/2008. This data is reflective of homes which were listed on the Indianapolis...

For the month of August, there were 58 homes sold and closed in Brownsburg, which is down by two homes from June.

The highest price home was $725,000.

The lowest priced home sold was $62,100.

The average Brownsburg home sold was a three bedroom, two bath with 2028 square feet.

The average Days on Market for homes sold was 87 days, up from 82 days last month.

There are currently 407 homes available for sale in Brownsburg, which gives us an absorption rate of 7.0 months.

Search all Brownsburg Homes for Sale

Statistics were obtained from the Metropolitan Indianapolis Board of Realtors (MIBOR) data and are representative of Indianapolis homes which were sold between 8/1/2008 and 8/31/2008. This...

For the month of August, there were 86 homes sold and closed in Avon, compared to 84 homes sold in June.

The highest price home was $368,542.

The lowest priced home sold was $83,900.

The average Avon home sold was a three bedroom, two bath with 2090 square feet.

The average Days on Market for homes sold was 85 days, up from 67 days last month.

There are currently 510 homes available for sale in Avon, which gives us an absorption rate of 5.9 months.

On all principal + interest home loans, the first few years of payments include a lot more money going to interest than to principal.  This is because mortgage repayment schedules are front-loaded with interest, meaning large-volume principal reduction won't occur until late in the mortgage's lifecycle. Comparing products at a 6% mortgage rate, did you know that after 15 years:

• A 15-year mortgage will be paid in full
• A 20-year mortgage will have 41.21% of its loan balance remaining
• A 30-year mortgage will have 73.19% of its loan balance remaining

Of course, this doesn't mean that 15-year mortgages are better than their 20-year or 30-year brethren.  It just means that 15-year mortgages pay off faster.  Yet, there are reasons for homeowners to avoid 15-year mortgages.  For example, versus 20-year or 30-year products, 15-year mortgages require the highest monthly payment because the payback period is compressed to a shorter time. 

In addition, mortgage interest...

My 22 year old daughter said to me at 12:15 this morning, 'Mom, it's September 11' . And suddenly, there is not another thought in my mind. I remember..................... we all remember.

I want to take one moment to say Thank You to the men and women who defend our country everyday; to say God Bless You and your families. Come Home Safely!

A Phone Call

A recent phone call from a gentleman about the amount of real estate property tax he had to pay for the reconciliation bill in July made me think about what a mess this whole year has been for homeowners, both those who are buying and those who are selling. This particular person closed on his home in July 2007, a really bad month to close on a home in Indianapolis.

Let me explain – Last July was the month the property taxes were stayed by the Governor. When tax bills were received last year, (late, I might add) there was an uproar from homeowners in Indianapolis.

The tax paying citizens of Indianapolis marched at the Governor’s home over the July 4^th Holiday last year and back then, I thought, what irony. It was Independence Day and we definately needed some independence from property taxes and their effect on our freedom to live in our homes without fear property taxes would be the final straw to break the proverbial camels back.

A Recap

The property tax bill received...

When comparing two investments with equal risk, a rational person will choose the investment with a higher rate of return. This behavior is called Risk Aversion and is a basic tenet of personal investing. An off-shoot of Risk Aversion is that a rational person will only invest in an instrument of greater risk if the returns are greater, too. The chart at right illustrates this concept, comparing return rates on two investments:

• U.S. Government bonds
• Mortgage-backed bonds

The difference in investment return rates is sometimes called a 'spread' and the historical spread between government debt and mortgage debt is somewhere near 1.5 percent. ...