Paula Henry

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Archive for April, 2008

Help Buying Your First Home in Indianapolis

April 25th, 2008 categories: Indianapolis Real Estate News, Indy Home Buyers, Real Estate Financing

Speedway Indiana HomesRecent changes in loan programs have put the squeeze on some who were considering buying a home. I received an email two days ago from a client I had been working with, stating his pre-approval had expired and since he could no longer finance 100%, his home buying plans are on hold. He is moving to Indianapolis from another state and didn’t make the move in time to keep the loan program he was initially qualified for, which would have put him in a home with zero down.

I responded to let him know there are loan programs available which will allow him to buy a home with little money out of pocket. Here in Indiana, we have the Indiana Housing program for first time home buyers. There are specific requirements, but the program can’t be beat if you qualify.

A few of the specifics:

*Available for First Time Home Buyers or

*Buyers who haven’t owned a home in the last three years

You will need three years tax returns to verify there were no homeowner tax deductions taken in the time period.

Income Guidelines:

* $63,800. for 1–2 person household

* $73,370. for 3 or more person household

* All family income counts regardless of whose name is on the loan

Loan can be FHA or Conventional

The current interest rate is 5.25%, which can be reduced by 1/8% to 5.125% when the buyer takes an online course about home ownership.

The program can be used with or without downpayment assistance. Down payment assistance is capped at $3500.00 and is subject to repayment when the home is sold or the loan refinanced.

If you’re looking to buy your first home, let’s talk. One of my preferred lenders will be happy to assist you in determining the best loan program for your specific circumstances.

Related Articles:

Preparation is Key When Buying a Home  

Business Planning and Real Estate                                  

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Authored by Paula | Discussion: No Comments »

Selling Your Indianapolis Home ~ Pictures Tell A Story

April 9th, 2008 categories: Indy Home Buyers, Indy Home Sellers

While searching available homes for sale in Indianapolis, I stumbled upon something I don’t quite understand. Although I try to stay on top of the latest marketing ideas to ensure my clients homes are marketed to the largest amount of buyers looking for homes, I’ll be the first to admit, there are some new marketing or technology ideas I haven’t yet tested.

This one, though, confounds me! Itty, bitty pictures on the MLS.

MLS Phots IndianapolisIndianapolis MLS Photos

These are the actual size of the pictures displayed in their largest format of these two homes. The smaller version is barely visible. What is it? The second one has no additional pictures. The first one has more pictures, all the same size. These are from two different agents who work for the same local company. Maybe, it is a new marketing strategy. My question would be, Is there value here for my seller?

Could it be, if you only show an itty-bitty picture, you will pique the buyer’s interest and they will have to come out and see the home? Surely not! With gas at over $3.25 a gallon, would buyers really jump in their car to see a home based on the representation of these photos?

When statistics show the buyer WANTS pictures, why would you not give them pictures, especially when the home is new? 83 % of buyers want pictures! I believe in giving the buyer what they are looking for when they come upon my seller’s home………Pictures, lots of pictures, a virtual tour and accurate detailed information. Some may think it’s beneficial to provide limited pictures, so buyers will come by. I do see some logic in that and can tell you, I have never had a seller tell me they don’t want pictures. I have had more buyers complain when there aren’t pictures. As a matter of fact, my experience tells me buyers will pass over a home without pictures.

Pictures tell a story! Itty-bitty pictures tell me there’s something about the property the seller doesn’t want seen……..Both of these homes are new, so I can’t imagine there is something you would want to hide.

I am always willing to consider my ideas may be wrong and there may be a better way to market a home online. I don’t think this is it! I would love to hear from homebuyer’s who are searching the internet for homes. Do you pass by homes with little or no pictures or do they pique your interest?

Authored by Paula | Discussion: 2 Comments »

Pricing Your Home to Sell ~ Part 2

April 9th, 2008 categories: Indianapolis Real Estate News, Indy Home Sellers

The Importance of Pricing Your Home Correctly From The Beginning

It never fails, when I am talking with a home seller, they want to try to get a higher price than the comparable homes in the neighborhood are currently selling for. I can’t blame them, I want the highest price for them. I understand the reasoning of pricing a bit high in case the buyer offers a lower price. It can be done and successfully, depending on your competition. When there are too many homes available just like yours, you have to Pricing Your Home to Sellbe priced accordingly. Of course, there is some room for upgrades and specific amenities, but you don’t want to attach too high a price to them.

Generally, the hardest hurdle to overcome is the emotional attachment people have to their home. Memories created in a home are what makes it a home. The problem is, the buyer has no sentiment about your home. They are looking at making it their home. They don’t care if this was your first home, or whether you personally installed every upgrade. They are comparing your home with every other home with the same square foot in the general area. If they feel the upgrades are worth the cost, they will buy. If not, they will move on to the next home.

The very best time to get the price right is when you list the home. The graph to the left indicates the activity a home recieves when it is first listed on the market. The initial activity can not be repeated. The longer your home is on the market - it becomes stale and is subject to a decrease in activity and subsequently, a decrease in price to raise activity to a higher level.

Marketing Matters When Selling Your Indianapolis Home

Do Increased Commissions Sell Homes?

Authored by Paula | Discussion: 2 Comments »

Simple Real Estate Definitions: Discount Points

April 4th, 2008 categories: Indy Home Buyers, Indy Home Sellers, Real Estate Financing, Real Estate Terms

discount points are up-front fees charged by mortgage lenders in exchange for lower mortgage rates

More commonly called “points”, discount points are up-front fees charged by mortgage lenders in exchange for lower mortgage rates. 

The cost of one point is one percent on the loan size and discount points appear on Line 802 of the HUD-1 Settlement Statement.

As a general guideline, each point paid lowers a mortgage lender’s offered interest rate by 0.250%. 

For example, a $200,000 home loan offered at 6.000% can be had for 5.750% if the borrower agrees to make an up-front payment of one point ($2,000).

Discount points can be an effective sales strategy for home sellers. In some areas of Indianapolis, where there is a lot of competition in the resale real estate market, sellers offering to pay discount points can help the buyer get a lower loan cost. It is generally less than price reductions, saving both the seller and the buyer money.

In addition to lowering your interest rate, discount points (as well as other closing costs) may be tax-deductible, too.  Therefore, be sure to provide any settlement statements from the previous calendar year to your accountant during Tax Season.

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