Happy New Year!

As this year comes to a close, I've been reflecting on the roller coaster that was 2011.  I've been so blessed to find success as a realtor--a career I enjoy, one that gives me the opportunity to help others and allows me to have a balanced and rich family life.  I'm so thankful for family & friends, clients & colleagues who have helped me to grow in 2011.

And as for 2012?  Well, it promises to be a great year...because I'm going to make it one.  The best is yet to come!

My wish for you is that 2012 is full of health, happiness and prosperity; that you can live your dreams and make it your best year yet.

No Chimney for Santa? No Problem!

 If your house doesn't have a chimney for Santa, hang a special key on your doorknob.  Santa's magic will allow him to open your door, deliver the presents and enjoy the milk and cookies you've left for him. 

Santa will leave the magic key by the empty plate of cookies so you can hang it up again next Christmas.  No chimney, no problem!

Rent vs. Buy

Should you rent or buy a home?  With interest rates at their lowest point in sixty years and rents briskly increasing in most cities, for most people, the answer is buying a home. 

Of course, home ownership carries other costs in addition to the monthly mortgage payment—including taxes, insurance, homeowner association dues and maintenance—which may dissuade some potential home buyers. But keep in mind these extra costs allow you to build equity in your home. If you plan to stay in your home for at least five to seven years, the equity from your down payment and monthly mortgage payments is a primary way for middle class families to build net worth. 

The New York Times buy vs. rent calculator is an interesting tool.  It takes into account the costs of home ownership, even calculating the lost opportunity cost of using  funds for down payment versus investing that money.  It also calculates the lost opportunity cost of using rental payments for investment purposes.  The reality is that you need to pay to live somewhere, whether you rent or buy, so really those funds wouldn't go solely to investments. 

Whether you use an online calculator to crunch the numbers or follow the anecdotal principle that real estate success is to be made on the "buy side" (and, wow, is it a great time to buy), give me a call and we can talk about renting vs. buying in your specific situation.

Deadline for Deductions Approaching

You have until December 31, 2011 to file your homestead and mortgage exemptions.  If you've purchased, sold, refinanced, or changed title, please make sure you have taken care of this to drastically reduce your property taxes owed.  Deductions reduce the amount of assessed value a taxpayer pays on a given parcel of property.

For more information, in Hamilton County, visit the website for the auditor's office.  In Boone County, visit the auditor's website or call (765)482-2940. 

You do not need to do this every year, only in the cases of selling, refinancing or changing title.  Give me a call if you need any further assistance. I'm happy to point you in the right direction. 

Neighborhood Holiday Traditions

Our neighborhood has a lovely tradition of lighting luminaries.  The entire neighborhood just looks so cozy and charming. 

My valiant husband tried to light our luminaries in near-blizzard conditions last year.  The kids and I watched him trudge through the snow to light each one, only to have each luminary be extinguished by wind gusts as he lit the next. We may have giggled. 

That's the beauty of traditions.  They provide great memories and good laughs.

Does your neighborhood have any special holiday traditions?

Exterior Doors

Doors have been on my mind since hanging our holiday wreath.  We recently had our house painted, and while that really improved the looks of our front door, we could still use an improvement in the charm category.  Isn't this door inviting and festive?

                           

But the following article from House Logic highlights the fact that it's not just looks, but energy efficiency, that matters, too.  And since light is visible through the cracks of our door, I think we have our next home improvement project!  I learned a lot from this article and hope it's beneficial for you, too.

Choosing an Exterior Door

By: Karin Beuerlein

You should understand the pros and cons of steel, fiberglass, and wood exterior doors before choosing the one that's right for you.

Steel
If you're looking to save money, a steel door may be a good choice, particularly if you have the skills to hang it yourself. A simple, unadorned steel door can sell for as little as $150 (not including hardware, lock set, paint, or labor) and typically runs as much as $400 at big-box retailers. Steel offers the strongest barrier against intruders, although its advantage over fiberglass and wood in this area is slight.

Even better, replacing your entry door with a steel model actually reaps a profit in added home value. Remodeling Magazine estimates the total project cost of installing a 20-gauge steel door at about $1,200--and the project, on average, returns about 73% of cost.

Still, the attractive cost of a steel door comes with an important caveat: Its typical life span under duress is shorter than either fiberglass or wood. A steel door exposed to salt air or heavy rains may last only five to seven years, according to Bob Bossard, general manager of 84 Lumber in Clarksville, Del. Despite steel's reputation for toughness, it actually didn't perform well in Consumer Reports testing against wood and fiberglass for normal wear and tear.

With heavy use, it may dent, and the damage can be difficult and expensive to repair. If your door will be heavily exposed to traffic or the elements, you may be better off choosing a different material.
Fiberglass
Fiberglass doors come in an immense variety of styles, many of which accurately mimic the look of real wood. And if limited upkeep is your ideal, fiberglass may be your best bet. "Nothing is maintenance-free," Bossard says, "but fiberglass is pretty close. And it lasts twice as long as wood or steel."

Fiberglass doesn't expand or contract appreciably as the weather changes. Therefore, in a reasonably protected location, a fiberglass entry door can go for years without needing a paint or stain touch-up and can last 15 to 20 years overall. Although it feels light to the touch, fiberglass has a very stout coating that's difficult for an intruder to breach; and its foam core offers considerable insulation.

Fiberglass generally falls between steel and wood in price; models sold at big-box stores range from about $150 to $600. Remodeling Magazine lists the cost of a fiberglass entry-door replacement project at around $3,600. Although a fiberglass door doesn't generate as high a return as a steel door, it recoups about 56% in home value.
Wood
Wood is considered the go-to choice for high-end projects; its luxe look and substantial weight can't be flawlessly duplicated by fiberglass or steel, though high-end fiberglass products are getting close. If your home calls for a stunning entry statement with a handcrafted touch, wood may be the best material for you.

Wood is usually the most expensive choice of the three--roughly $500 to $2,000, excluding custom jobs--and requires the most maintenance, although it's easier to repair scratches on a wood door than dents in steel or fiberglass. Wood doors should be repainted or refinished every year or two to prevent splitting and warping. (Remodeling Magazine's Cost vs. Value Report doesn't include a wood entry-door replacement project.)

If you're concerned about the environmental impact of your door as well as its energy efficiency, you can purchase a solid wood door certified by the Forest Stewardship Council, which assures you that the wood was sustainably grown and harvested.

Tracing the environmental impact of a particular door--from manufacturing process to shipping distance to how much recycled/recyclable content it contains--is quite complicated and probably beyond the ken of the average homeowner, notes LEED-certified green designer Victoria Schomer. But FSC-certified wood and an Energy Star rating are an excellent start.

A final note on choosing a door based on energy efficiency: Because efficiency depends on a number of factors besides the material a door is made of--including its framework and whether it has windows--look for the Energy Star label to help you compare doors.
                           

Housing Market and Consumer Confidence

"I can't change the direction of the wind, but I can adjust my sails to reach my destination."

The housing market in central Indiana is undeniably getting better. The last quarter has seen listing inventory, that is the number of homes for sale, decrease while the average price has increased, and interest rates are amazing. And it's highly likely that the housing market will continue to get better.

But it doesn't always feel that way, does it? The economic news of the past few years has us all beaten down a bit.

David Caveness, vice president of Carpenter Realtors, explains, "The biggest challenge to a sustained recovery in central Indiana’s housing market continues to be consumer confidence. The downward trend in the monthly Consumer Confidence Index continues to put a drag on the housing recovery. Despite favorable prices and interest rates, many prospective home buyers simply lack the confidence in their personal situation to undertake such a major purchase."

A bright spot today highlights a drop in initial unemployment claims to a seven month low.  While national data doesn't convey your personal story, you should nonetheless know that if you want or need to make a housing change, there are reasons to be optimistic.  There is data to prove that things are moving positively, if slowly, but positively.

The wind is changing direction.  We should make our sails ready.

Mortgages Rates Averaging Less than 4%

Freddie Mac announced today that 30-year fixed rate mortgages are averaging less than 4%, and 15-year fixed rates are averaging 3.3%.  These are historically amazing rates. And, keep in mind that these are averages...if you've got solid credit, your rates may even be better.  It is time for you to refinance or act on those dreams of moving!

Even Zionsville Community Schools is taking the opportunity to refinance.  Zionsville voters approved a referendum allowing the school district to restructure and refinance debt which will help our school district deal with budgetary losses. 

If  you are renting, your monthly payments in most cases will be less with a mortgage.  If you haven't refinanced yet, you can lower your monthly payment or keep your payment the same but own your home free and clear in a shorter amount of time.  Like ZCS, you have a great opportunity to restructure and refinance.  Give me a call if you need a referral for a knowledgeable and skilled mortgage loan officer. 

How to Choose a Realtor

When choosing a realtor, you have about 7,000 possible candidates in central Indiana.  How to make the right choice?  Ask some good questions and trust your instincts.

1.  How will you communicate with me throughout the process?
2.  How will you educate me about the home buying process?                         
3.  How will you market my home for sale?
4.  What is your experience and education...in real estate and otherwise?

Notice that none of my suggested questions include the realtor's commission.  While you absolutely should ask about that and ultimately get it in writing, it should not be the question to qualify or disqualify the realtor candidate.  The fact is, while I provide an excellent value, I do not compete on cost.  I compete on quality of service. 

Also, trust your instincts. Does the realtor present professionally in speech and dress?  Is the realtor affiliated with a reputable company and refer you to outstanding mortgage lenders and home inspectors? Does the realtor treat you with the courtesy you deserve, no matter the price point of your home?

You have a lot of choices.  Ask your friends for referrals, but be sure to ask your own good questions and trust your instincts in choosing a realtor.

Redevelopment in Zionsville

We all know change is the only constant.  That doesn't mean that even the idea of change can cause feelings of uncertainty, even worry.  In the following news clip, proposed changes to Zionsville Road are causing some residents to worry. 

Some good questions are raised by the homeowners' perspective...such as, does the benefit to many outweigh the benefits of some...and do these proposed plans really benefit many?  What do you think?

Building a Home? You Need a Realtor!

Are you surprised by that?  Many people don't realize the value of a realtor when building a home.  Their two main fallacies are:

• first, that the builder will pass the savings of not having to pay a realtor's commission on to you, the home buyer
• secondly, that the sales representative in the model home represents you

News flash:  the builder will not pass the commission savings on to you.  Home builders have carefully calculated profit margins including realtor commissions and even bonuses. Also, were a builder to discount your home price based on not paying a commission, that would skew the pricing of their neighborhood, essentially dropping the value. That doesn't benefit anyone.

The sales representative in the model home or office will make you feel at home and be thoroughly knowledgeable about the homes in the neighborhood. But don't mistake that for a fiduciary relationship to you.  Your realtor is thoroughly knowledgeable about the homes in the neighborhood, too, and can help you make an offer, provide guidance on lot selection, negotiate amenities, help you stay focused on choosing amenities to protect resale value, and keep the builder accountable during the building process. 

If you're thinking of building a new home in the Indy area, give me a call.  I'm here to represent you!

Preparing Your Home for Sale in the Fall

Selling your home in the fall? Vivid fall foliage will enhance your home's curb appeal. You can't rely on nature alone, though, when preparing your home for sale in the fall.

Rake frequently to keep leaves on the lawn to a minimum.  And as trees shed their leaves, your home will be more exposed; chipped paint or dirty siding will be even more noticeable, so pressure-wash your house and repaint if necessary.  Fall is the perfect time of year for those tasks.  Be sure gutters and downspouts are clean so buyers will know you are diligent about maintaining your home.

Natural decorations such as pumpkins and potted mums or kale can enhance your home's curb appeal.

If your busy schedule doesn't allow time for raking or pressure-washing, just give me a call.  I can provide you with referrals for lawn services, house painters, and handymen who can help you prepare your house for sale in the fall.

Selling Your Home in the Fall

Many people think of spring as the perfect time to put their home on the market.  But listing your home in the fall can have some advantages.

• You will have less competition now as fewer homes are on the market.
• You may get more money for your house because you have less competition.
• While you may have fewer showings, buyers in the fall--and winter for that matter--tend to be more serious and more qualified.
• You always have the option of allowing showings around your busy fall schedule. 
• Corporate transferees are looking online for homes now;  January is the biggest month for corporate relocations. 

Real estate does have seasonal fluctuations, but homes are sold twelve months out of the year.  Let the seasonal nature of the market work in your favor.

MLS, BLC, MIBOR Alphabet Soup

MLS, BLC, MIBOR...Realtors throw around these acronyms as if they're part of everyone's vocabulary, so let's clarify this alphabet soup.

MLS stands for Multiple Listing Service.  Many people think of this as simply the pictures and information on a listing, and that is certainly a feature of a multiple listing service; it's technically an advertisement for compensation. Realtors in a geographic area agree to show and sell other realtor's listings in exchange for compensation. 

BLC stands for Broker Listing Cooperative and is the name of the multiple listing service of MIBOR.  Oh, no, another acronym...

MIBOR is the Metropolitan Indianapolis Board of Realtors.  Realtors in the thirteen counties in central Indiana who join follow MIBOR's Code of Ethics and participate in the BLC, meaning they have access to detailed information on every home listed and sold by any other MIBOR member and agree to compensate and be compensated by the terms advertised in the BLC.

Not all realtors join MIBOR.  Often, small, independent brokerages elect not to join MIBOR to save on membership dues, the downside being they lack the BLC's essential information and compensation agreements. Most area realtors however, belong to MIBOR and its MLS, the BLC.    Alphabet soup, anyone?

Why Fewer Homes for Sale Benefits You

In the thirteen counties that comprise the MIBOR Broker's Listing Cooperative (BLC) area, there are about 15,600 homes for sale.  That sounds like a lot, doesn't it?  But consider that at this time in 2007, there were 21, 241 homes for sale!  That's a lot more competition...to drive prices downward and to make any imperfections in a house a reason for buyers to look instead at the house down the street. Today's numbers are comparable to the home inventory of 2004, and are moving in the right direction. 

And on a seasonal basis, fall is a good time to list your home due to less competition.  The potential buyers out there now tend to be more serious and more qualified.  With less homes to choose from, your home can stand out even more.

Home Staging + Professional Photography...

...equals MLS Eye Candy! These photos, all from the same home, are staged to perfection.

Notice a home staging trick of the trade--pulling the furniture away from the walls.

ADORE the apple green wall color.  No, it doesn't have to be tan, but it 

does have to be classic or perfectly on-trend and meticulously applied.

  What impressions do these photos conjure for you?  

Would they cause you to schedule a showing if you were in the market to buy?

They sure would for me.  

Refinancing your Mortgage: new HARP guidelines announced today

Changes were announced today in the Home Affordable Refinance Program (HARP) that allow more borrowers to refinance their mortgages. In yesterday's post, we talked about unprecedented interest rates making refinancing very attractive.  For those homeowners with negative equity, loan modifications have been possible, but not without hurdles. 

Key changes to HARP include:

• reducing fees associated with refinancing to encourage homeowner to shorten the term of their mortgage
• eliminating new appraisals with the refinance
• removing the current ceiling of 125% loan to value ratio; in other words, it does not matter how "underwater" the homeowners are

HARP is designed to help those homeowners who are current in their mortgage payments and have negative equity through no fault of their own.  Thankfully, we in the greater Indy area never had the dramatic bubble and burst experienced by other areas of the country.  That doesn't mean, however, that there aren't people who could benefit from this program here.  Call me if you need a referral for a highly competent and skilled lender who can discuss the numerous qualification criteria for HARP or other refinancing programs. 

Refinancing your Mortgage

Thinking of refinancing your mortgage? One of the most important and helpful services I can offer you is a referral to a competent and skilled mortgage lender.  You may not be in the market to buy a home now (although it's an amazing time to buy with 30-year fixed mortgages averaging 4% and 15-year mortgages at an even lower average) in which case I hope you've taken this economic opportunity to refinance your current mortgage. If you haven't refinanced recently, I invite you to call me for a referral.   

Some applications:

• Many people who refinance are switching from a 30-year loan to a 15-year loan, keeping their monthly payments the same, but paying off the mortgage in less time.  
• Of course, if you simply refinance a 30-year loan at a new, lower rate, you are in control of prepayment but with more flexibility in case of emergencies. 
• If you've been faced with interrupted income due to unemployment or illness, there are even loan modification programs to change the terms of your loan. 
• If you have negative equity, or are, colloquially, underwater, there may still be opportunities to modify your loan.

Smooth seas do not make skillful sailors. Mortgage loan officers closing deals today, particularly those I've had the pleasure of working with, are able to navigate today's complex markets and challenging economy.  And by the way, your personal finances are confidential between you and the loan officer. Call me for a referral if you're looking to purchase or refinance.

Relocating to Zionsville: My Take

As a realtor, I could tell you all the logical reasons why a home buyer should relocate to Zionsville, notably that Zionsville home values are comparatively stable, and homes in great condition are selling at fair market value. So if you're thinking of relocating to Zionsville, let me tell you instead what I think is so great about living here from my perspective as a happy resident.

1. Small town feel, yet close to everything Indy has to offer... I love that I can smile and chat with people I know just about anywhere I go in Zionsville, or that I can hop on the interstate and be at the Children's Museum with the kiddos in 20 minutes.

2. The parks...walking the Rail Trail, the fun community events at Lions Park, the kids splashing and playing in summer or sledding in winter at Mulberry Fields or running around the Lincoln Park gazebo after they've finished their ice cream from DQ. They all feel like an extension of our backyard.

3.  The schools...the high quality of life we have in Zionsville is very affordable when compared to other areas of the country with similarly outstanding schools.  Although we have many excellent private schools nearby, Zionsville Community Schools are a huge value. 

4. The people...friendly neighbors and a strong sense of volunteerism in the community help Zionsville to maintain its small town feel, even with tremendous growth in the past decade.

5.  And, there's always something to do...one of my favorite spots to take restless kiddos in the winter is The Park, basically an indoor playground that will save your sanity in February.  We'll see you tomorrow at Pumpkins and Hayrides in Lions Park!

What is YOUR favorite thing about living in Zionsville? Leave a comment.

New Listing: 3635 Toronto Court--a 3 bedroom,2 bath home in Indianapolis

If you are looking for a clean, move-in ready home with a comfortable 3 bedroom, 2 bath floor plan, 3635 Toronto Court in the Crooked Creek area of Indianapolis  is for you.  New carpet, new paint, newer roof, open living areas, huge deck, shady yard...this home offers easy and comfortable living.

3635 Toronto Court Visual Tour

Call me today for more details or to schedule a showing.

Home Staging: Just Paint it Tan?

I should paint every room tan, right?  That is a question I get a lot when I sit down with listing clients to talk about home staging. Every home staging is unique. Consider this picture:

This room is far from neutral.  But it is clean, fresh, inviting, balanced and lacks personalization. 

There is an adage in the real estate business that for every hour spent staging your home, you'll net $100.  I don't know if that's an exact correlation or not, but I do know that staging is very important in a high inventory market. And if your realtor isn't giving you advice on staging or enlisting professional stagers, then you're missing a critical factor of getting the most for your sale.

So, no, not every room has to be tan...but I will let you know if it does need to be changed.  When it comes to your house, I'll be honest yet respectful about how to stage your home for sale.

Preparing Your Home for Sale

Obviously I wasn't a Boy Scout, but I sure do like the way they think.  Always Be Prepared.   Before we stage your home and that bright red Carpenter Realtors sign goes in the yard, here are some really beneficial things you can do to prepare for a successful home sale:

1. Get a pre-listing home inspection.  This can be especially helpful if you have an older home.  For a few hundred dollars, you can be forewarned about items that may scare away potential buyers.

2. Get replacement estimates.  If you cannot fund any major repairs revealed by the pre-listing inspection, obtain estimates. This will help potential buyers determine if they can afford the home.

3.  Make minor repairs.  If you're like me, it's easy to get used the quirks of your home. But you're much better off to fix that squeaky door or leaky faucet.

4. Clear the clutter.  Store it away, but remember even your boxes need to have an organized appearance if they are visible in closets, the basement or the attic.

5. Clean. Your home needs to sparkle.  Clean the baseboards and switch plates. Clean the refrigerator and oven, even if you're taking them to your new home;  in the buyer's eyes, they're a reflection of how you've maintained the home.

Of course, I've got all the referrals you'll need to get prepared, from inspectors to tradespeople to cleaning services.  I'll help you make it easy to always be prepared.

BWAHAHAHAHA....scary MLS photos

In the spirit of Halloween, let's take a look at some frightening MLS photos. After all, 90% of all buyers begin their home search perusing online images.

I see dead people.  Or alive people.  Meet the seller, everyone. Don't
worry. Her slippers won't make much noise as she spooks
around the house. She'll be watching you in silence.
 

Let's hope this is a wig.

Updated cabinetry with brushed nickel hardware,
stainless steel microwave, oh, and a black cat. ON THE COUNTER.
Buy this house and prepare food for your family where
a creature who has walked in cat litter has been padding around.