Indianapolis Real Estate Market Questions
I received a call today from a gentleman which made me think about questions I am routinely asked about the real estate market here in the Indianapolis area.
Referring to a previous post, he specifically wanted to know about buying a home in Indianapolis. Here’s a few of the questions I am asked and my response:
Q: Is it reasonable to expect to pay 10–20% less than the listed price?
A: It depends on the property and the area of town! Not every home on the market is overpriced and those which are priced correctly initially are still selling well. I have seen homes which have sold for less than 10–20% of the original listing price, but the formula does not apply to every home on the market.
Q: Will there be more homes on the market in a few months?
A: Yes and there will also be more buyers. Spring is the start of the busiest buying time of the year. Although you may have more selection – you will have more competition.
Q: Have we hit the bottom of the market?
A: Luckily, Indianapolis did not have the huge price increases some areas of the country had. Still, we have suffered the effects of a slow down in real estate sales. I personally believe this year will be the start of a turn around for the real estate market in Indianapolis.
Q: Where’s the next hotspot(s) around the city?
A: My bets are on the Northwestern portion of Indianapolis, the western portion of Hamilton County, Boone County around Zionsville and Anson, as well as Plainfield and the area around the new airport.
These answers are in no way intended to be used as general investment advice. Your personal investment and home purchase should be based on an understanding of the local market conditions within the area you choose to invest or buy.
Discussion
Cyndee - We do sometimes forget the client doesn't always know the info we think they do. I'd rather tell them something they already know, then forget to tell them something they need to know.
Joanne - What a nice compliment, thank you! I hope he is glad he called me. Our market is beginning to move again and this year seems to be off to a good start. Often, I think it would be nice to live in a vacation community such as yours, but I don't ski!
Paula - these are great questions and answers - sometimes when you're in the business you forget these are the things local home buyers and sellers want to know.
I am glad my market hasn't seen the slow downs that others have, but I am glad to see the rest of the market may be moving up again. I bet the man you talked to was glad that he had called you. You know what you are talking about!
Paula,
Great article. It appears that the Indy market is very similar to greater Cincinnati.
Joe - There is rarely a concrete answer! Without seeing your home and knowing the comps for the area; it is difficult to say what may be going on in relation to price vs. value.
This is generally a slower time of year with buyers taking their time making a decision. My statistics indicate the average home in Noblesville, in your price range, had 2.8 showings since October 25th, so what you are experiencing is about average.
Over the holidays we typically see out of state buyers looking and more buyers taking advantage of days off to look at homes.
What I see in the market are two types of buyers - one is only looking for the lowest price or a bargain; the other is looking for "move-in" ready. It sounds like you have move-in ready.
A few things to look at:
How does your price compare with the current listings in your neighborhood? in the surrounding area? What may seem like a low price to you, may not to buyers. If you are priced correctly, show them the benefit and value.
Are you competing with new home builders on price and amenities. Often, this is the hardest obstacle to overcome.
Have your Realtor take a look at the most recent expired listings. That will give you an idea of the price point buyers rejected in your neighborhood this year.
One thing to remember - the longer you are on the market the more susceptable you are to buyers who believe you must be desperate or there is something wrong with the home.
I have a question, my wife and I listed our Noblesville home on 10/25 and have had 2 showings since, would you say that this is typical for this time of year? We are listed at $219,900 4 bdrm w/loft, finished basement, over 3500 sq ft. We have been told that both people who looked at the home want to buy it, however one has to find a job here in Indy and the other isn't moving here until May. No offers, just interest. The home truly is in perfect condition, a lot of upgrades and priced competatively, actually on the low side. Why no showings??? Please help.
Post a Comment