The Blog of IndianapolisCondos.com

Rare Condo with Walk-Out Basement!

noreply@blogger.com (Roger Lundy) — Thu, 20 Oct 2011 21:53:00 +0000

Top-of-the-Line Quality with Over 3800 Square Feet!

Fantastic main level living plus lots of room for entertaining. Great floor plan with kitchen, breakfast room, formal dining room, living room with fireplace, stately den...plus a huge Master Suite (you won't believe the closet space!) and a guest bedroom...all on the main level.

CLICK HERE to see more information!

FHA Condo Guidelines

noreply@blogger.com (Roger Lundy) — Fri, 23 Oct 2009 20:20:00 +0000

FHA notice on delay in FHA condominium changes:

Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.

Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.

To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee

This Month in Real Estate

noreply@blogger.com (Roger Lundy) — Fri, 16 Oct 2009 19:21:00 +0000

3rd Quarter Condo Stats

noreply@blogger.com (Roger Lundy) — Mon, 12 Oct 2009 19:50:00 +0000

This was the best Quarter for condo sales since the 3rd Quarter of 2007!

527 condos sold & closed during the 3rd Quarter of 2009. This is up 129 sales over the 2nd Quarter and up 15 sales over the 3rd Quarter last year. The 3rd Quarter of 2007 had 581 condo sales. The average sales price was $132,903 with 116 days on the market.

This Month in Real Estate

noreply@blogger.com (Roger Lundy) — Wed, 16 Sep 2009 19:28:00 +0000

This Month in Real Estate

noreply@blogger.com (Roger Lundy) — Sun, 16 Aug 2009 19:30:00 +0000

This Month in Real Estate

noreply@blogger.com (Roger Lundy) — Thu, 16 Jul 2009 18:05:00 +0000

2nd Quarter Condo Stats

noreply@blogger.com (Roger Lundy) — Sun, 12 Jul 2009 19:45:00 +0000

Improvement over the 1st Quarter is good to see!

398 condos sold & closed during the 2nd Quarter of 2009. This is up 102 sales over the 1st Quarter and still down 114 sales over the 2nd Quarter last year. The average sales price was $129,657 with 119 days on the market.

Red, White, and BOOM! The best downtown condos to view the fireworks!

noreply@blogger.com (Roger Lundy) — Fri, 03 Jul 2009 14:49:00 +0000

Each year on July 4th the fireworks are set off at dusk from the top of the Regions Bank building. Last week I was showing a condo and commented that the balcony would be a great spot to view the fireworks.

There are many great places to view the fireworks but these are the first to come to mind:

Rooftop decks at the Hudson, Lockerbie Glove Company, Mill No 9 and 757 Mass Ave.
Next year 3Mass and 429 on the Park will be completed and will have great views.
Any of the penthouse units at the Conrad. (Wonder how much the Chase Tower will block the view? I will have to make note to check next time I am there.)

Be safe and have a great weekend!

Taste of Indy hosted to be held at 3Mass

noreply@blogger.com (Roger Lundy) — Wed, 29 Apr 2009 18:19:00 +0000

Thanks to Halakar Properties for agreeing to host "Taste of Indy" on June 11th as a benefit for The REALTOR Foundation! The Foundation seeks solutions for the homeless. So far JS Reutz Cafe, Scotty's Brewhouse, Agio, and Shula's have agreed to participate. More information can be found at www.realtorfoundation.org/awareness. Can't wait!

1st Quarter Condo Stats

noreply@blogger.com (Roger Lundy) — Sun, 12 Apr 2009 19:55:00 +0000

292 condos sold & closed during the 1st Quarter of 2009. This is down 90 sales over last year. The average sales price was $112,004 with 124 days on the market.

1098 condos were listed for sale in the same time frame. This was 179 fewer condos than the 1st Quarter of last year. The average list price was $170,241.

BIG Surprise, Huge Honor!

noreply@blogger.com (Roger Lundy) — Sun, 25 Jan 2009 15:47:00 +0000

Last night at The Ball for the Metropolitan Indianapolis Board of REALTORS I received the honor of being named "REALTOR of the Year!" I was floored...the youngest person ever to receive the award. (Which was a nice feeling since I turned 41 two days before!)

2008 Condo Sales Numbers Coming In...

noreply@blogger.com (Roger Lundy) — Thu, 08 Jan 2009 20:30:00 +0000

As I predicted on April 5, 2008, condo sales for 2008 were down 21% from 2007.

Was it a just a good guess? No. It was based on market knowledge and observing the trends.

A total of 1713 condos sold throughout the Metropolitan Indianapolis area in 2008 compared to 2166 in 2007.

Other years have been as follows:
2006 - 2436
2005 - 2366
2004 - 2082
2003 - 1815
2002 - 1606
2001 - 1572
2000 - 1394

Family loans remain a solid down payment option

noreply@blogger.com (Roger Lundy) — Mon, 25 Aug 2008 18:33:00 +0000

The Federal Housing Administration (FHA) recently altered its guidelines as a result of the Economic and Housing Recovery Act of 2008. One significant change was the elimination of the seller-funded down payment assistance program. Often used by builders through non-profit organizations such as Nehemiah and Ameridream, this program enabled the seller of a property (either an individual or a builder) to “donate” an amount equal to the funds needed by a buyer for a down payment on a home when securing FHA financing.

As of Oct. 1 of this year, the FHA will no longer allow seller assisted down payments. Not only that, but the FHA actually increased the down payment requirement from 3 percent to 3.5 percent—a setback for those who want an FHA loan and are already having problems saving enough money to close on a home.

Fortunately, there is another financing option that can bring these folks a little closer to home: family loans. This feature is unique to FHA. And while it‘s not permissible for buyers to borrow the down payment from individuals when securing any other type of mortgage, FHA’s guidelines allow buyers to borrow from family members. But to obtain a family loan, borrowers must keep some specific requirements in mind:

The family member making the loan can be a parent, grandparent, son, daughter, stepson or stepdaughter, or a legally adopted child or foster child.
The term of the loan cannot be less than five years.
The FHA loan and family loan combined cannot be greater than 100 percent of the value of the home.
The scheduled loan payments, if any,must be factored into the buyer’s debt ratios.
Funds cannot be directly or indirectly associated with the seller, or anyone in the transaction who has a financial interest in the sale.

Now let’s combine the family loan with another advantage afforded by the Housing and Recovery Act of 2008: the $7,500 tax credit. If Grandpa is a likely candidate to supply a family loan, then he might want to know how he would get paid back. If the buyers are first timers and qualify for the tax credit, then Grandpa could get repaid come tax time.

Remember that lenders will want to verify the source of all funds to close the transaction, so be prepared to provide a copy of the loan agreement that spells out the terms and verifies that Grandpa has sufficient funds available to make the loan.

Sometimes when a window closes, another one opens, So while the recent Housing Recovery Act of 2008 has put the squeeze on the seller-funded down payment assistance program, a family loan can provide another avenue to closing on a home.

Written by David Reed, Texas-based mortgage banker with more than 20 years experience
and author of Mortgages 101 and Mortgage Confidential.

Help has arrived: U.S. Congress comes through with relief

noreply@blogger.com (Roger Lundy) — Tue, 19 Aug 2008 21:40:00 +0000

The Housing and Economic Recovery Act of 2008, the most sweeping housing legislation since the Depression era, was passed by the U.S. Senate and House of Representatives at the end of last month and was signed into law by President Bush. The new law addresses various aspects of the housing downturn, including assistance for homeowners who are behind on their mortgages, federal oversight of Fannie Mae and Freddie Mac, and funding for cities to buy and fix up foreclosed properties. Many of the provisions of the new law go into effect October 1, 2008 but for first-time home buyers who bought, or will buy, their home between April 9th of this year and July 1, 2009, there’s an immediate bonus — a tax credit of up to 10 percent of the sales price, up to $7,500. Note that this is a tax credit, not a tax deduction. A deduction is an item that is subtracted from your annual income before income taxes are calculated. A tax credit is subtracted from the amount of taxes you owe.

“First-time home buyer” is specifically defined in the new law, and includes those who may have owned a home in the past, but not within the last three years. To qualify, be prepared to show your last three years’ worth of income tax returns to prove that you did not pay mortgage interest during that period. There are also income limitations on the tax credit - $75,000 per year if you’re single and $150,000 if filing a joint return to qualify for the full credit, but the credit does phase out beyond those amounts up to $95,000 for singles and $170,000 for joint filers.

By the way, the tax credit isn’t a gift - you have to pay it back. Nevertheless, it provides an initial reprieve, as repayment doesn’t begin until two years after purchase, and is payable over a 15 year period. If you sell the property before the tax credit has been fully repaid, any remaining amounts owed are due to the IRS upon closing.

Applying for the tax credit isn’t mandatory, but for many, it will make home ownership feasible in the coming year — and that’s exactly what the tax credit is intended to accomplish.

Written by David Reed, Texas-based mortgage banker with more than 20 years experience
and author of Mortgages 101 and Mortgage Confidential.

Points:To pay or not to pay

noreply@blogger.com (Roger Lundy) — Sun, 06 Jul 2008 18:10:00 +0000

Numerous closing costs come with any mortgage. There’s a fee for an appraisal and a fee for a credit report… and the lender has its fees, too. And don’t forget about the attorney fee, title insurance and escrow charges. Closing costs can vary from state to state and province to province, but you really don’t have much choice of whether you want a survey or if title insurance is right for you. There will be a variety of services performed and records searched by different companies, and none of these come free of charge.
But there is one closing cost that you can control: discount points or, more simply, points.
Author of:
An Agent's Guide to Financing Solutions
Mortgages 101
Mortgage Confidential
A discount point reduces the interest rate on your mortgage. One point is equal to 1 percent of your loan amount, so on a $200,000 loan one point equals $2,000.
Why do some lenders charge points? In reality, all lenders pretty much have the same rates; it’s just that sometimes a lender will advertise a rate with a point or a rate without a point. But the decision to pay a point is yours alone.
A point will typically reduce your interest rate by a quarter of a percent on a 30-year mortgage. If your lender offers a 6.5 percent rate with no points, then you may also get 6.25 percent with one point. So how do you decide?
It’s simple. Just take the difference in monthly savings gained with the lower rate and divide that into the point. The result equals how many months it will take to “recover” the amount
you paid in points. Let’s look at an example.

A 30-year fixed-rate mortgage of $200,000 at a 6.5 percent interest rate would mean a monthly principal and interest payment of $1,264.14. By paying an additional $2,000 in the
form of a point, your rate would drop to 6.25 percent and the resulting payment would drop to $1,231.43; saving you $32.71 each month. When you divide that $32.71 monthly savings into $2,000 you get 61.14, or about 61 months. Your recovery period is slightly over five years. That’s a little long in my opinion and I’ve never been a big fan of paying points. Instead, I’d encourage you to take that same amount and pay down your principal.

Remember: The quarter percent difference in interest rates when paying a point is an imprecise, general mortgage rule of thumb. Whichever rate you get, be sure to divide the savings into the points paid to see how long it will take to recoup the difference.

Used by permission and written by David Reed.

Is owner financing for you?

noreply@blogger.com (Roger Lundy) — Mon, 30 Jun 2008 17:11:00 +0000

Owner financing has been a popular practice in previous real estate downturns. Current market conditions and upheavals in the mortgage industry have given rise to a new-found interest in this idea. If you own your property outright, have a need to sell in a soft market and are interested in converting your sold home into an investment that yields returns, owner financing may be a option worth exploring.

Successful owner financing means that you, the owner of the property, get to widen the potential pool of home buyers by offering to finance the transaction. And since private lending, where you act as the mortgage lender, tends to offer higher than standard interest rates to offset risks, you can also enjoy a nice return on the home loan.

Due diligence is the key to successful owner financing. This is not intended as a means to provide financing for those who have damaged credit, little or no income or some other “loan of last resort” characteristic. So who is this ideal candidate and how do you, the owner, evaluate such a proposition?

Your ideal candidate is someone who has excellent credit but for some reason, lenders aren’t using all or part of the buyer’s income. For instance, someone that has been an attorney for a legal firm for several years and just last year started their own practice or an experienced mechanic who ventures out on his own to open up his own shop. Lenders like to see two years’ worth of self employment when evaluating a loan application.

You’ll need to check the buyer’s credit and you can do so by getting written permission to pull a credit report. Or, you can log on together to www.annualcreditreport.com and print off a current report at no charge. Have the prospect provide you with three months most recent bank statements, personal and business, to show cash flow. To verify employment, dial “411” and ask for the phone number for that person’s business and call the office.

You can only hold a note on a property that is free and clear. Any transaction where title changes hands will trigger the “due on sale” clause inserted in mortgage loans.

Finally, and most importantly, get a substantial down payment. Anything that is 20 percent down indicates that the buyer is serious. Most owner financing arrangements are done on two to three year balloon notes. The idea is that your non-qualifying buyer will have time to establish a track record with their earnings and refinance with a traditional lender.

TOP STORY: Rates creep up -- A recent survey and a rate increase could mean more competition for homes

noreply@blogger.com (Roger Lundy) — Mon, 16 Jun 2008 23:35:00 +0000

Recent indication is that first time home buyers are getting tired of sitting on the sidelines. According to a recent online poll taken by the National Apartment Association, 17 percent of renters plan to make the jump to home ownership in the next year; 41 percent of the 2,041 respondents planned to be home owners within two years. Only 31 percent planned to still be paying rent five years from now.

Another factor that could very soon contribute to an increase in home buying could be rising mortgage costs. Fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October. After months of aggressively dropping interest rates, many lenders are worried that the Fed will be forced to raise rates back up. As interest rates rise, so do mortgage rates. According to a press release on freddiemac.com, Frank Nothaft, Freddie Mac vice president and chief economist said that, "Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman [Ben] Bernanke and Vice Chair [Donald] Kohn, expressed concern over a threat of inflation." We may very well be seeing the beginning of the end of the super-low mortgage and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, "Moreover, pending home sales for April unexpectedly rose by 6.3% and mortgage applications for home purchases ... were also up last week."

The Best Time to Lock in Your Mortgage Rate

noreply@blogger.com (Roger Lundy) — Mon, 09 Jun 2008 12:31:00 +0000

“What do you think about rates … should I lock in now or wait to see if they fall further?” Think I’ve been asked that a time or two over the past 18 years? You better believe it. It’s a good question—one that goes through every single buyer’s head at some stage.

A quoted interest rate is no good unless you’ve confirmed, in writing, that your loan is indeed “locked,” or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don’t assume that your loan officer already locked you in. In fact, your loan officer shouldn’t lock in your rate without your specific instructions. If it was locked in and rates went down you’d be pretty mad, wouldn’t you?

While neither real estate agents nor loan officers are in the business of predicting the future, it’s still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up?

If you decided to lock and rates go down, you’ve secured the market rate that you were happy with. But if rates went up and you didn’t lock, you’d be paying for that mistake for the rest of the loan.

There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan. So it’s important to ask yourself: “Which way would I rather be wrong?”

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.

June Observances

noreply@blogger.com (Roger Lundy) — Tue, 03 Jun 2008 02:51:00 +0000

When you do something three months in a row, it's a tradition, right?

June Observances:

Turkey Lovers Month (I would have guessed November!)

National Ice Tea Month

National Soul Food Month (Have you eaten at Mississippi Belle? YUM!)

Potty Training Awareness Month

Skyscraper Month

Weekly:

National Headache Awareness Week 1-7

International Clothesline Week 7-14

Superman Week 9-12

Carpenter Ant Awareness Week 22-28

Daily:

2 Yell "Fudge!" at the Cobras in North America Day

6 Donut Day, followed by...

7 Banana Split Day

13 The only Friday the 13th in 2008 (And my parents 50th Wedding Anniversary!)

20 Take Your Dog To Work Day

22 Stupid Guy Thing Day

Taming the Jumbo Mortgage

noreply@blogger.com (Roger Lundy) — Mon, 26 May 2008 14:15:00 +0000

Everyone knows the jumbo loan market has been out of whack for nearly 18 months. “jumbo” loans, those amounting to more than $417,000, took it on the chin when mortgage investors stopped buying subprime and alternative loans. For that reason, jumbo rates can be as much as 1.50 percent higher than conforming rates. Historically, jumbo rates were only about a quarter of a percent higher than a conforming rate, but this new spread has kept many out of the housing market: especially those that I call, “just jumbo.”

So what exactly is “just jumbo?” It’s a loan amount that just exceeds the conforming limit of $417,000 and typically reflects a sales price in the $500,000–$600,000 range. Many local markets offer homes in this price category, but the marked difference in rate from conforming to jumbo is slowing down sales. What is the difference in payment between a conforming loan at 6 percent and a jumbo loan at 7.50 percent? On a $500,000 jumbo loan, mortgage payments jump from $2,997 to $3,496 a month. That’s almost $500 more!

Fortunately, with some changes in strategy, we can put a major dent in that increase in payment by buying a property with two loans — a first mortgage and a second. With the first mortgage at or below the conforming limit, the second mortgage then eliminates the need for private mortgage insurance, or PMI. And still, with only 10 percent down on a $500,000 sale.
For example, let’s say we have a sales price of $500,000 and you put 10 percent down. With a jumbo loan at 7.50 percent, the monthly payment on a 30-year note is $3,146 plus a PMI payment of about $188, for a total of $3,334. Using a 40 percent debt ratio means that you need to make about $9,700 per month to qualify.

Now, let’s make the first mortgage for $400,000 at 6 percent (conforming) with a second mortgage at 7 percent on a $50,000, 30-year note. The mortgage payments would be $2,398 and $332 respectively, for a combined total of $2,730. That’s a savings of over $600 per month, and now the income to qualify is almost $1,500 less at $8,200 per month! Do you think that has an impact on affordabilty? I do.

Here's another idea: sellers can carry back that second note to provide some additional income, providing an even better second rate for the buyer!

Build It And They Will Come

noreply@blogger.com (Roger Lundy) — Sun, 18 May 2008 02:08:00 +0000

Today I had an incredible opportunity to experience a behind-the-scenes tour of Lucas Oil Stadium!

For years we've heard conversation around whether or not to build a new stadium with plenty of spirited opinions on both sides. Two years ago, while going through the Real Estate Academy of Leadership, I heard a presentation by the Indianapolis Convention & Visitors Association that explained how taking down the RCA Dome was the easiest way for the convention center to expand. As I toured the new stadium I saw the possibilities for events that are now possible for Indianapolis to host. Of course, the 2012 Super Bowl, in addition to major political and business conventions that we don't have the facilities to accomodate right now.

Several things really struck me about the new stadium:

Its 4.5 times the size of The Fashion Mall at Keystone at the Crossing.

The outside brick is, well...rather fake. It is in sections, not built brick by brick. (No wonder it seemed to appear overnight!)

There are four HUGE steel beams that anchor each corner. Each one is buried in 300 truck loads of concrete!

The roof takes 9 minutes to open and when it does, the walls bow out under the weight. Of course all of this was taken into consideration and the support moves with it.

There are lots of ceiling fans that are 25 feet in diameter! Yah, they're actually made by a company called Big Ass Fans.
And the biggest surprise of all? For those of you who live in Indy, you know that old factory downtown that you can't believe is still there? Guess what creates the steam that heats half of downtown and now Lucas Oil Stadium? Yep, it's there to stay!

2008 YTD Stats

noreply@blogger.com (Roger Lundy) — Fri, 16 May 2008 02:58:00 +0000

I thought I'd check in with the stats so far this year and here is what I found:

Since January 1st: 570 condos have sold and closed.
Same time last year: 761
That's a drop of 25% over last year. About what I expected to find.

Here's what was listed during the same time frame:
2008: 1,733
2007: 2,082

216 condos are now under contract with an accepted offer and have not yet closed.

Okay, so what's that all mean?

Simply put, it means condos are selling...just not as many as last year.

If you're looking to Buy, congrats! You've timed the market perfectly! Contact me and we'll find the one that's right for you.

If you're looking to sell there are two things:

You need an agent that knows condos and knows how to market your condo to Buyers.
If you're selling your condo and moving to another...look on the bright side, you too have timed it perfectly to buy!

Keller Williams Offices shine on Industry Surveys

noreply@blogger.com (Roger Lundy) — Fri, 16 May 2008 00:51:00 +0000

RISMedia Power Broker Report and Survey

Every year, RISMedia and REAL Trends release two of the real estate’s most comprehensive surveys: the RISMedia Power Broker Report and the REAL Trends 500. Both surveys rank the largest residential real estate brokerages in the U.S. based on both transaction sides and sales-dollar volume, and these reports are frequently used as referral tools and are referenced by thousands. This year, Keller Williams stormed onto the lists with a very strong showing.
KW offices dominated the Power Broker Report – with more offices listed in their top 700 list than any other franchise brand. The survey also named Keller Williams Realty as the industry leader in terms of number of agent teams. And, 102 KW offices were listed in the Companies to Watch section – making up 55% of the total list!

As for the Real Trends 500, which lists the top 500 brokerages in the nation, Keller Williams Realty had the second highest amount of offices listed both transaction sides and sales volume, among the top franchise brands.

Even further proof that it's always a great day at Keller Williams!

What interest rates really mean

noreply@blogger.com (Roger Lundy) — Mon, 12 May 2008 13:39:00 +0000

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale. In turbulent economic times the media can’t wait to report what interest rates are doing. Pundits prognosticate, forecasters forecast and soothsayers sooth. When should you buy a home based upon interest rates and when is it the right time?

The fact is that interest rates, while important, have little impact when it comes to buying a home. Alright, alright, I’ll admit: it’s important…but it’s not a deal-killer.

There is a fixation on what rates are doing. A fixation on what rates will be in the future and what rates were in the past. I’ve heard potential home buyers tell me, “I’m not sure I want to buy now because rates are ¼ percent higher now and I think I’ll wait.” I say, “Wait for what?” I say let’s not look at the rate but instead concentrate on what that rate actually represents … your monthly payment.

Let’s look at what an interest rate move of ¼ percent really does to a $200,000 mortgage. Say a 30-year interest rate at 6.00 percent “jumps” to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable? No. The payment on a $200,000 loan “jumps” by about $32 a month!

Now let’s get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64. Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it’s hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it's been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It's time to act.

Are rates important? Sure they are. But are they the end-all? Heck no. Interest rates over the past few years have been in a very tight range, with few major swings. Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.