Preparing to Buy or Sell a Home: How is the Housing Market?

I’ll get straight to the point: the housing market for 2013 is looking good!

Both nationally and in Indianapolis, home sales are expected to continue to rise, after hitting their highest level in five years in 2012.

According to the National Association of Realtors, total home sales in 2012 were the highest in five years, while prices rose the most since 2005. Total existing-home sales were up 9.2 percent from 2011, with the highest sales volume since 2007.

Home sales, and prices, are being driven higher by interest rates, job growth, and falling supply.

•  Interest rates are averaging just over 3 percent for a standard 30-year fixed-rate mortgage. Rates aren’t expected to go lower unless the economic recovery falters.
• The unemployment rate is around 7 percent, down from its peak of 10 percent in the fall of 2010. A better job market is driving housing demand.
• The supply of homes for sale is just over 4 months—the lowest level since May 2005. Supply continues to dwindle in the face of rising demand and fewer foreclosures.

So whether you’re thinking of buying or selling, now is the time! Call me at 317.777.1805 or email me at Scott@LacySells.com to discuss your next move.

Current and Potential Homeowners Want to Know: Can I Afford the Property Taxes?

In short, the answer is yes!

In Indiana, a 2008 reform capped property taxes at 1 percent for homeowners, 2 percent for rentals and 3 percent for businesses. Indiana’s property taxes are among the lowest in the nation, and will remain so due to a 2010 referendum that capped the rates in the state constitution.

Indiana in general, and the Indianapolis metro area in particular, are great, affordable places to live. So don’t let the fear of high property taxes deter you from buying your dream home. Call me at 317.777.1805 or email me at Scott@LacySells.com, and together we’ll find the right home, at the right price, for you.

Preparing to Buy a Home: Should I Get a Mortgage Pre-Approval?

So you’re thinking of buying a new home. You’ve been browsing the listings online, perhaps visiting open houses, and planning to view some homes for sale once the snow melts. Yet there’s something else you should do: get a mortage pre-qualification and pre-approval (yes, they are two separate things).

Pre-Qualification

Getting pre-qualified by a lender is the first step—it gives you a good idea of what you can borrow. You provide your income, debt, and how much you plan to pay as a down payment, and the lender gives you an estimate of how much house you can afford. This is often done over the phone, and you are not obligated to use that lender for a mortgage.

Note that if you get some or all of your down payment from your parents or another family member, you should deposit it in your bank account for at least two months, or obtain a gift letter explaining that the money is a gift, not a loan.

Pre-Approval

Pre-approval is the second step, and is much more involved process, because it tells lenders and sellers that you are serious about buying. If you find a home you love and a competing buyer has a pre-approval in hand and you don’t, you might lose out on your dream home.

You can usually get pre-approved within 24 hours after submitting the necessary documents. Some online sites can provide pre-approval immediately, but you will still need to provide the verification to a lender. As with pre-qualification, you are not obligated to use that lender for the loan, though most buyers do.

Documents You Need for Pre-Approval

·       Pay stubs and W2s (income verification from the past two years)

·       Two–three months of bank statements

·       Tax returns from the last two years (if self-employed)

·       Loan documents on your current home (if applicable)

·       Divorce decree (if applicable)

As always, if you have any questions about the process of buying a home or obtaining financing, contact me at 317.777.1805 or scott@lacysells.com.

Preparing to Sell Your Home: What Color Trends Work Best?

If you’re like me, you’re eagerly awaiting the end of winter and ready for warm weather to arrive.

For those of you considering selling your home this year, these last few weeks of winter are a perfect time to complete some indoor projects that can add value to your home.

One simple and inexpensive home improvement project that pays a high return on investment is painting.

For a few hundred dollars and a bit of effort, you can increase the selling price of your home by giving it a clean and up-to-date look.

Some things to consider before you begin:

• Color Scheme: Home improvement and decorating trends change over time: remember the avocado green appliances of the 1970s? If your home’s color scheme is out of date, choose paint in attractive yet neutral tones that will appeal to a wide variety of potential buyers.

• Murals and Wallpaper: Murals, especially in children’s bedrooms, or custom colors that are difficult to match, will not appeal to most potential buyers. Wallpaper is also usually a no-no, unless it is tasteful or easy to paint over.

• Touch-Up: Even if your interior walls or exterior are the right color, the effect is reduced by chipped, peeling or faded paint. Paint over or touch-up the defects using the same color.

• Check the Competition: Visit model homes or open houses to seek out current trends in colors and materials in your area, especially those in professionally-staged homes. (I’ll cover staging do’s and don’ts in a future blog).

Of course, I am always available to answer your questions at 317.777.1805 or scott@lacysells.com. Happy painting!