2008 August | Indy Real Estate Talk

Really Simple Syndicate Ask the Agent Ask the Lender

PAULA HENRY
REALTOR ®
RE/MAX Excel
Office: 317-272-5002
Direct: 317-605-4174
Fax: 866-373-5769

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Archive for August, 2008

Short Sales For Buyers

August 30th, 2008 categories: Indianapolis Real Estate News, Indy Foreclosures

Short sales are NOT short!

In the midst of several short sale negotiations, experience tells me home buyers do not know what Short Sale means. While visiting a past client yesterday, she asked if a short sale meant the seller was trying to sell fast.

In theory, that is usually the case. The seller is trying to sell fast to get out of a home they can no longer afford. In practice, it rarely happens fast. The process can be long and drawn out with twists and turns not found in a traditional home purchase.

A short sale – in simple terms - means the bank or investor is being asked to accept less than is owed on the property. Banks and investors really don’t like losing money – who can blame them, most of us don’t!

As a buyer, what does short sale mean for you?

Where are the deals?

Although there are deals to be had in short sales, you generally are not going to get a steal. Banks are fairly savvy and know what the value of the home is. When they start a short sale file, one of their first actions is to have the home appraised or what is called a Broker Price Opinion (BPO). Just because it is a short sale doesn’t mean they will accept any offer. They have guidelines which determine the loss they will take on a particular property.

You have to be patient!

This is not easy to do when you are waiting for an answer. If your offer is the first offer a bank has received on the home, your wait time will most likely be longer. Most banks do not want a short sale file until there is an offer. Being the first offer may mean a month to six week wait for an answer.

Banks always have the final word!

All offers are subject to bank approval from the sellers lender. Generally the bank will send a demand statement with their terms. You will then have the option of accepting their terms or not. Much like a counter offer, except the banks counter offer is final.

Property is AS-IS

Many banks have special addendums which state the property is being sold “as-is”. You can still have an inspection, but the bank will not be doing any repairs. Any repairs would have to be negotiated with the seller, but remember, the seller is facing foreclosure and may not have the funds to repair any inspection items noted for repair.

Short sales are not easy or fast, but the rewards of equity can be a payoff for your time and patience. Much of the burden of the process lies with the agent who has the home listed and whether they have submitted a complete package to the bank.

A gentle reminder – your agent can not make the bank work faster – it is a process! Believe me, I have tried!

Tags: Indianapolis+real+estate, short+sales

Authored by Paula | Discussion: 8 Comments »

Average Home Price in Indianapolis

August 23rd, 2008 categories: Indianapolis Real Estate News, Indy Market Trends

Once again, Indianapolis has led the nation in most affordable housing for the 12th straight quarter. That’s 3 years of consistently offering the most affordable housing to the residents of Indianapolis. The article at CNN Money states the median sales price for homes sold in the second quarter was $108,000.

How does that price point hold up throughout the Indianapolis area? The chart below shows the average price of homes sold in Indianapolis and the suburbs since January 1, 2008.

City or Area Marion County	Average Sold Price – YTD	City or Area Suburbs	Average Sold Price YTD
Washington Township	$173,681	Avon	$164,948
Warren Township	$76,324	Plainfield	$141,166
Decatur Township	$89,641	Zionsville	$348,563
Pike Township	$127,939	Carmel	$335,834
Wayne Township	$62,409	Fishers	$238,939
Lawrence Township	$135,949	Noblesville	$189,022
Franklin Township	$142,170	Westfield	$219,028
Perry Township	$106,957	Cumberland	$104,189
Center Township SE	$40,752	Brownsburg	$165,916
Center Township SW	$29,578	Greenwood	$165,726
Center Township NE	$68,393	Beech Grove	$84.093
Center Township NW	$81,316	Speedway	$102,050

The areas with averages below $100,000 are areas where foreclosures and bank owned sales make up a large percentage of the lower priced homes in the Indianapolis area.

Average and median prices are not representative of what a home in a particular area will sell for. The average sales price for any area is figured by combining the total sales price of all properties, then dividing that number by the number of units sold.

When you want to know what is happening in your neighborhood, you need to narrow the search locally to area, neighborhood and subdivision.

Let’s look at a few examples:

In Pike Township, the average home price for 2008 is $127,939, which includes 695 sold homes this year. The highest priced home sold was $900,000 and the lowest priced home sold was $4,750. Pike Township includes the Eagle Creek area of Indianapolis. In Eagle Creek, single family homes range in price from $189,900 for a three bedroom, two bath home in The Trees to $1,275,000 for a waterfront home with deeded dock.

Center Township NE is an area of Indianapolis with many Historic Districts comprising the higher end sales for central Indianapolis and downtown. It includes the areas of Mass Ave, Lockerbie Square, Old Northside as well as homes north and east of downtown, outside of the renovated Historic Districts. There were 677 sold homes this year. The highest price home sold for $745,000 amd the lowest price home sold for $1,208. Current homes available range in price from a 7 bedroom, 9 bath luxury condo at 707East North for $4,592,870. to a 1 bedroom, 1 bath home in need of renovation for $4,000.

Want to know what is happening in your neighborhood, just contact me.

Tags: Indianapolis+Real+estate, Most+Affordale+Homes

Authored by Paula | Discussion: 4 Comments »