LyonsLink Real Estate Group Blog

Have we hit bottom?  Well, if we haven’t I’d hate to see what it looks like.  I have recently picked up on some positive signs that seem to have been eluding us in recent months.  Gas prices coming down, a positive news report on Good Morning America regarding how numerous markets are showing marked improvements in sales, sale units up 7% in Indiana last month, a surge in the stock market that appears to be holding up better than other recents surges, signs that lending is beginning to loosen up. No major bad news in the past week.

We are often being asked when will the housing market hit bottom.  Unfortunately, by the time we can answer that for you, it will already be on a much sharper upturn than the lengthy downturn we have been experiencing.  My vote says if we aren’t there, we’re pretty darn close.  Once buyers catch on that now is the time to buy they will have already missed the very best time to buy.  If you are a ready, willing and able buyer, what more can you ask for than a “Buyers Market” with near historically low interest rates. 

There undoubtably is some serious pent up demand.  Particularly in the Indianapolis, Carmel, Zionsville, Fishers and Geist areas.  All of us have been affected by this economy. Many of us have placed our spending on hold. However, if we still have our homes, our jobs and our families, things really have not changed that much.  History shows that our 401k’s and other investments will recover in the long term.  

Of course each of us needs to evaluate our own personal situations.  But, if you feel secure in your job, now may be the time for action.  If you were interested in stepping up your housing situation prior to the recent mess, you may very well be able to step up even further than you had ever hoped. If you are a qualified first time home buyer, don’t wait. If you want a vacation home, give it a close look now. If you are downsizing you probably want to wait, although an evaluation of the current interest rate offerings may lead you to think otherwise.

So have we hit bottom?  I’ll tell you in three to six months.  Just as with a recession that may be over by the time you can prove you were in one, by the time you can prove the housing market is stabilized it will once again be moving toward a ”Sellers Market”.   

I just got another call from someone trying to sell me placement on search engines.  It made me wonder if consumers know that in some cases their business goes to the highest bidder, not necessarily the broker best qualified to do their business.

There are services, brokers can pay, for called “per click” were they pay an amount that is determined by bidding for each click (hit) they get on their site.  There are other services being paid where a participating broker pays a fee and leads are directed their way.  Often times these “leads” are generated from hits on other real estate related service company sites such as mortgage companies, title companies and such.  Interested in a loan?  You may be interested in buying or selling.  Others will sell you placement based on your search criteria.  Searching for Carmel IN real estate on yahoo?  For a fee they will see to it that your sight comes up first.  Carmel IN homes on google? Carmel IN houses? And on it goes.  Each sold independently of the other.  The broker you find isn’t determined by how good they are or the services they provide but by being the one to pay for your specific search criteria.

I would suggest that before you call off of anything that comes off of the internet you do your homework.  Check to see who offers the best services and gets results in the area you are looking.  If you are moving in from out of town ask contacts in your new city for recommendations.  If you’re in town and don’t know a good real estate agent, do the same with your friends.  You will have much better luck with this method than by taking the first,second or third name that pops up on a search engine.

Oh, and by the way, if you are reading this and need an agent, check us out I think you’ll be inpressed.

This is only one mans opinion but I’m not convinced the system is broken beyond repair.  I think the biggest problem is administering the changes that have been legislated.  Regardless of the circumstances, is it fair to raise anyones taxes in multiples of 2x’s 3x’s 4x’s etc?  I think not.  But this is what is happening. Not due to property taxes being unfairly levied but due to the administration of the method to correct what was truely a broken system. 

It is my understanding that the old system had a depreciating value system based on the age of the structure.  The new sytem is market price based.  That would mean that owners of newer properties have been paying taxes much closer to a market price than those that lived in older homes that had been depreciating for years.  Does basing property taxes on true market value a fair way to access taxes?  I think so.  Does making those who own older homes pay multiples of their previous taxes to correct a gleaming error in the old system.  I think NOT!  It’s not their fault the old legislated system was out of wack.

 What would be a fair solution would be to remain on the market price value system but only initiate the increase once a property is sold.  This way those on fixed incomes or tight budgets won’t get stung and those buying a new property will have an understanding that they will be paying thier fair share based on an equitable system.  Of course the tax basis for these older homes should be locked and not depreciated any further in the interim.

On average a typical home owner will move every seven years.  If this holds true it won’t be long until the vast majority of homes are being taxed at targeted rates. 

We just closed over $1,700,000 in sales in what many would lead you believe is an impossible market.  One was a listing sold for over $1,000,000 and the other a new construction buy of over $600,000.  Both sales were in Carmel, IN.

If nothing else this is proof positive that the market is not “impossible”.  Both of these homes were fairly priced, showed like models and were sold to “qualified” Buyers.  If Buyers and Sellers do what is necessary to meet this type of criteria they will find the road to buying and selling much smoother.

Price your home fairly and with the competition in mind.  Stage the home to show at its best.  Make all necessary repairs prior to selling. If you are a qualified buyer, remember this is an excellent time to buy.

Today I am working with a Buyer to respond to the Buyer’s Inspection.  The home we had inspected is 45 years old and has quite a few updates to make it very attractive to the market.  It is located in Indianapolis, IN. This inspection happened to go very well, in large part because the Seller had it pre-inspected prior to listing it.  This is a good idea for all Seller’s, but a particularly good idea for homes that are older or have deferred maintenance.

 In todays world, with many market areas having an abundance of available homes, it is not at all uncommon for a Buyer to walk due to inspection issues.  At the very least a Seller needs to be sure that there are no “major defects” at the time they are attempting to sell.  This might include siding issues, mechanical issues, roof leaks, structural problems etc.  The Seller will be called on these “major defects” one way or the other and if not prepared to remedy you may as well lace up the Buyers shoes and send them on their way.  Ideally the problems will be handled prior to the Seller raising the issue.

Yesterday a friend of mine was voted the new Mayor of Indianapolis.  Greg Ballard ran a grass roots campaign and won despite a huge finacial discrepancy. 

One of Mayor Ballards primary objectives is to kick up the fight on crime.  As part of this effort Mayor Ballard plans to do something about abandoned homes in Indianapolis.  Currently there is an approximate 18 - 24 month time frame required to take control of these properties.  Mayor Ballard would like to reduce that time to 3 to 6 months. 

Abandoned homes not only add to the deterioration of neighborhood values but often times provide a base of operations for drug deals, prostitution and other illigal activities.  It is not uncommon to hear news of murder victims being found in these homes.  I hope to have conversations with the Mayor on his attack of this problem and would appreciate your comments with regard to this issue.

John R. Lyons

Welcome to Beth Lyons’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Carmel.