Video – How Location Affects the Price of Your Home

Check out this video by Kay Kammeyer, Broker/Realtor, about how location affects the price of your home – http://www.youtube.com/watch?v=_zU06ypDdGA

Two Central Indiana counties report increased sales in May

More than 2,200 Central Indiana homes pended in May, with two counties reporting increases compared to the same time period last year, according to pended sales statistics compiled by F.C. Tucker Company. Boone County posted a 32.4 percent increase, and Madison County sales rose 2.5 percent.

May pended home sales in the nine-county area were down 11 percent with 2,227 homes pending compared to 2,501 in May 2008. Year to date, overall pended home sales are down 12.8 percent compared to the same timeframe in 2008.

Available homes for sale in the nine-county region dropped 18 percent in May 2009 with 15,801 homes on the market, 3,458 fewer homes than in May 2008. Four counties experienced above average inventory declines. Marion County experienced the greatest decrease in inventory at 23.7 percent, followed by Madison County with 19.2 percent and Hancock and Hendricks counties with 18.3 and 18.2 percent, respectively.

“Home inventory levels have consistently dropped over the past 12 months, and we’re nearing a balanced, six-month inventory level,” said John Snavley, Senior Vice President of F.C. Tucker Company. “At current pricing levels, with new homebuyer incentives and low mortgages rates, this is an excellent time to buy a home in Central Indiana.”

Even national pundits are stressing that in today’s real estate market, now is the time to buy. Recently, CNBC Mad Money host Jim Cramer commented on the nation’s state of the economy and real estate market, saying “I think that real estate is a once-in-a-lifetime opportunity… mortgage rates are the lowest in my life, affordability is the best in my life. Clearly, real estate is much better than stocks right now.”

Decreasing home inventory nearing six-month supply

April housing statistics point to continued opportunities for buyers to take advantage of lower housing prices across Central Indiana, while a decrease in available inventory shows steady progress to a more balanced market between buyers and sellers, according to pended sales statistics compiled by F.C. Tucker Company.

 Available homes for sale in the nine-county region dropped 16.9 percent in April 2009 with 15,785 homes on the market, 3,211 fewer homes than in April 2008. Three counties experienced above average inventory declines. Marion County experienced the greatest decrease in inventory at 22.8 percent, followed by Madison County with 20.8 percent and Hancock County with 17.6 percent.

 Home sales continue to trail last year’s levels. Madison County posted the only increase in pended home sales over April 2008 at 18.5 percent. In April, 2,272 homes have pended, 10.8 percent less than the same time in 2008. The average sales price is down 11.9 percent from April 2008, decreasing from $140,477 to $123,813.

A recent poll of Tucker sales associates showed 62 percent of their customers were first-time buyers prompted by the $8,000 federal tax credit. The first-time homebuyer’s credit includes no repayment and credit recapture on the sale within three years of purchase.

 “While overall sales are down, we are seeing a surge of first-time homebuyers come off the sidelines to take advantage of the $8,000 tax credit,” said H. James Litten, president of F.C. Tucker Company’s Residential Real Estate Services Division.  Contact Kammeyer Realty Group, www.kammeyerrealtygroup.com, to learn more.

Steps in Building a Home Video

Tips to Finding The Perfect Home

Deciding What to Buy
You need to begin thinking about what you want and then setting some priorities. Ask yourself questions such as:

• What type of home is most appealing to you: ranch, split-level, contemporary, two-story, etc.?
• Which construction do you prefer: brick, vinyl siding, wood siding, stone, stucco, etc.?
• What kinds of activities will take place in your home on a regular basis? If one of you is a student, for example, you will need to have a quiet study area somewhere in your home. If you plan to do a lot of casual entertaining, a rec room may be important.
• How many bedrooms will you need? Bathrooms?
• Do you want a separate dining room?
• Do you need a basement?
• Do you prefer a large or small lot?
• Is it important to have a garage? Does the garage need to be attached?
• Do you want a fireplace?
• How much square footage do you need?
• Do you need a fenced yard?

 

Once you’ve defined some of your expectations and desires, you and Kammeyer Realty Group can begin to prioritize them. Which items are negotiable and which aren’t? How much flexibility do you have?

Deciding Where to Buy
You may have heard that location is everything in real estate. For a homebuyer, location is very subjective; as with deciding what to buy, deciding where to buy is a matter of determining priorities. Is it important to you to be close to your work, your church, your extended family, or a particular school? Do you want to be near a recreational area? These factors will determine the area of town in which you choose to purchase your new home.

Kammeyer Realty Group can provide you with your own personalized home search website. Click here to get started. Once we find homes that meet your criteria, Kammeyer Realty Group will set up showings and determine a day and time to preview the homes. We will find a home for you! www.KammeyerRealtyGroup.com

Testimonial for Kammeyer Realty Group

“I would like to write a letter of appreciation about Kay Kammeyer. She has been the absolute best realtor I could have had. I am so grateful for all the hard work that she put in helping me find a condo. The whole process of buying a condo was foreign to me, but she made everything go smoothly. Kay is so knowledgeable about the entire process that I could not have been in better hands. She patiently showed me several places, always taking into consideration my preferences-even when my preferences changed. She researched everything about the condo so that there were no surprises later. I really appreciate the way she explained everything to me and at a level I could understand. Kay responded quickly to every question I had and returned every call as soon as she was able. Even though she, I sure, had several other customers to work with, I always felt I could count on her when I needed her and her focus was totally on me when were working together. Customer service does not get any better than that!

I also appreciate that even though the sale is complete, I did not fall off Kay’s radar. I still have questions from time to time and Kay responds just as quickly and professionally as she did before the sale. That to me is very special. It was more than I could have expected. I hope you realize what a gem you have in Kay. I have recommended her to several people, and I can do that knowing they will get the same great care that I received. Please pass my appreciation on to Kay. She is great!

I was also very pleased to discover all the extras that come with a purchase from F. C. Tucker. Your company puts together a wonderful package of services after the sale that makes life so much easier. I have taken advantage of several of the discounts offered and have used the concierge service with great success. It was very helpful to have someone do the legwork in finding services and have the vendors contact me. That’s much nicer than dragging out the Yellow Pages and making calls!

All in all, I am a very happy customer. I had the best realtor and a company that does a great job of customer service. Thank you!”
- Nancy Stickney

How to Keep a Positive Perspective in a Negative Market (Part 2)

Last week I asked the question, “How do I maintain this positive attitude?” Well here’s how I do it. In “Winning through Intimidation” author Robert Ringer talks of the importance of maintaining a positive attitude through the assumption of a negative result. In other words, Ringer suggests that you be prepared for the worst case scenario while at the same time putting your best foot forward to get the best possible result. This will take the mental pressure off of you and allow you to focus on getting the job done. This approach, I believe, allows you to be positive and realistic in your mental assessment of buying and selling your home.

There’s an old expression in the media business, “If it bleeds, it leads.” In other words, the media loves to cover negative news more than positive because it sells better. When the real estate market is in turmoil, the media loves to run these negative headlines to keep reminding people how bad things are. When buyers hear the bad news, it affects demand because the negative news drives fear, which makes buyers worry about whether the time is right to buy a home. Is the media simply reporting the news or does the media actually affect the news in this regard? The answer is obviously both. The media reporting negative news alone can’t simply shape a real estate market. However, since perception is often viewed as reality, when buyers are spooked, they may shy away from buying. This affects lenders, builders, real estate agents and other professionals who rely on the real estate business for their income. It becomes almost a self-fulfilling prophecy because things get worse and the media constantly reminds us how bad things are.

But, are things really as bad as the media reports? The numbers certainly do reflect falling home prices and rising foreclosures. When you hear that foreclosures have doubled or even tripled in a particular area, this may sound catastrophic at first until you realize that the vast majority of homes (97-99%, depending on the local market) are NOT in foreclosure! Despite all the doom and gloom, there’s always a buyer for a well-kept home offered at the right price and terms. In short, don’t always pay attention to the doom and gloom media reports if you want to keep a positive attitude and sell your home fast!

Well done is better than well said. You sometimes have to take a whole lot of action to get your house sold in a slower market. In a good real estate market, people can sell a house fast, so when things slow down, they figure, “Oh well, there’s nothing I can do.” Nothing could be further from the truth. Not only is there something you can do, but there is a lot you MUST do to get your house sold. However, it’s not just about working hard, it’s about working SMART. You need to do things in the right order and in the right way to get the proper results.

However, don’t focus too much on perfection before you take action. You’re probably familiar with the phenomenon of the “C” student who outperforms the “A” student in real life. This is because the “C” student is often satisfied with having a “can do” attitude. The “A” student’s mentality often leads to paralysis of analysis and inaction. In other words, the bottom line is getting your house exposed to as many buyers as possible, not getting it done perfectly. For example, many sellers want to show their house only when it is convenient to them and the house is in perfect shape to be shown, instead of when the buyer is ready. While showing a house in its best condition is a priority, it doesn’t make senses to put off a ready and willing buyer for too long just so you can have everything perfect.

Many people reading this are prone to inaction because of fear of doing it incorrectly. Remember, it is not a matter of doing it perfectly, but putting forth you best effort! As I stated earlier, a lot of effort at a “C” level beats doing less things at an “A” level.

Lack of knowledge certainly makes it difficult to sell a house fast in a slow market, and is probably the single biggest drawback for the average person. Most homeowners only have the opportunity to sell a few houses in their lifetime and often need to rely on professionals to do the work. Thus, the average homeowner does not have enough practice and experience to get really good at the task at hand. In fact, a majority of real estate agents in the business are hardly good at it…the top 20% of agents in any market do the vast majority of the business! Taking the time to learn what to do is an important part of the success in selling your house. There are two types of knowledge when selling your home, general and specialized. Certainly there are a lot of materials floating around out there offering general knowledge, but only an experienced real estate agent ( like Kammeyer Realty Group) will reveal the specialized knowledge you’ll need to get your house sold fast and at the highest price you can get in your market!

Keep that positive attitude!!

How to Keep a Positive Perspective in a Negative Market

I am sure that you all have heard the expression, “Attitude is everything.” This is so true. Right now, it is simply your attitude and mentality that will give you the edge over others who are trying to invest in this highly volatile market and buy a home. You’ve undoubtedly heard the importance of thinking positive and having the right attitude. Most people are smart enough to know that this statement is true. Some people reading this will argue that a positive attitude doesn’t always work. Well, maybe not, but I know one thing for sure…negative thinking and a negative attitude NEVER works! So your only choice and your only chance for success in finding a new home in today’s market are to pick the positive things in life and maintain a positive attitude at all times!

I once read a fortune cookie that said, “An optimist is someone who tells you to cheer up when things are going his way”. I know that if you are reading this, times may be difficult and you may need serious answers to your burning questions such as, “Will my new home be a sound investment and grow in value?” There are many answers to this question, but first I need to explain to you some items of relevance.

About every ten to twelve years, real estate values on the average tend to double in many areas. As an example, in the 1920’s, the original colonial homes sold for just under $2,500 in Long Island, New York. Since then, real estate prices have doubled almost 8 times in the last 80 years! That averages out to a 100% increase approximately every ten years. Now that may not be the case here in central Indiana, but most homes in central Indiana historically have increased on the average ranging from 35% – 65% over a period of ten years. An interesting note to this that about every ten to twelve years, real estate values must correct before they enter their next growth cycle.

The process of real estate value correction is three steps forward and one step back. For example, imagine a major value increase occurring in three steps of one-third parts each. The last market cycle of the 1980’s was one in which real estate values nearly doubled, followed by a correction of the early 1990’s, which equated to a 20-30% decrease over a three to five year period. This cycle was then followed by the post 2000 cycle boom where values increased substantially from the high point of the previous cycle. We are now in NATURALLY OCCURING phase of the correction in the cycle. This essential and beneficial adjustment gives the market a time to reflect and re-gather momentum and strength for the next major increase in value of the cycle! Please rest assured that this has occurred time and time again because the long-term demand for housing is still growing at an exponential rate based on population growth to almost double in the United States by the year 2050! These people will be in demand for a place to live, thus driving prices higher as it naturally has for the last 100 years!

Since we now know that real estate values will grow based on past history, it’s not a matter of if; it’s just a matter of when. If you are planning on staying in your perspective home for more than five years, now is the time to buy! If you are still a little apprehensive about purchasing a home, would you by your parents’ home for what they purchased for it? I bet your answer would be “YES”!

How else do I maintain this positive attitude? I’ll answer more in next weeks article!!

Keep that ” Can do”attitude!

Selling Your Home in Today’s Volatile Market

It is fast approaching the time of year when flowers bloom and spring smells fill the air. Your home has been on the market for sometime now. You are growing weary of seeing that “For Sale” sign posted in your dormant and brown grass in your front yard. Soon the grass will be green and more homes will be on the market. “Surely my house should have sold by now! Why hasn’t it sold? Is the market really that bad? Should I wait? Do I really want to sell?” you ask yourself.

These are all common and valid questions which are being asked every day. Clients are having second thoughts all the time. But, the first question I ask is, “Do you really want to sell and how bad do you want to sell?” You, as the seller, need to be 100% committed to selling YOUR home. Your concentration should be solely focused on executing the sale of the place you currently reside. You should not sell because of some of these distractions, namely:

“Maybe we should downsize.”
“I really would like to purchase the house on Geist; perhaps we can try to sell?”

If these are questions you are asking, then you are wasting your time and money. In today’s economy, you must concentrate on the sale of your current home before you move on. The words “maybe”, “like”, and “perhaps” are not what I call commitment words. They create doubt and will not move the sale of your home in an expedient manner. I cannot emphasize the term “committed to sell” enough.

Every day your home sits on the open market, it costs you money. Buyers commonly ask, “How long has it been on the market?” They feel that if your house has been listed for awhile, you would be more eager to negotiate freely and lower your price. Remember, the longer the house sits on the market, the more likely it is that you will be substantially reducing your selling price. You need to sell it or pull it off the market and wait. It’s all part of your “commitment”.

Ok, so you still are committed to selling your home and it has sat on the market for some time. What do you do? My recommendation is to reduce the price now. Maybe you should lower it 5%…maybe 10%…maybe as much as 15%…whatever the market dictates. More and more homes are hitting the market every day. We are fast approaching the season when a surplus of homes hit the market, many priced at your listing price. I feel that the market is still in somewhat of a decline. You need to make your home attractive to a potential buyer. Since it is a buyers market, people are looking at value. You need to make your home irresistible. Price is the factor that makes deals happen! You cannot wait on offers to come forth based on your asking price. You have to remember that many other homeowners are in the same predicament and are simply waiting for offers. They too will “miss the boat” while other sellers who have lowered their prices are entertaining competent offers. Buyers do not have time dealing with numerous counter offers trying to get to their price. There are too many other options out there. They will simply pass and move on.

Very seldom in today’s market do you have that “special” home…the home that somebody will fall in love with at first sight and makes an immediate offer on the list price. You need to realize that those days are long gone. Most everyone will need to reduce their dream home at one time or another to make it move. Don’t be left behind!

You may say that it is the Realtors fault. Let me assure you that I will put forth 150% of my effort to market your home effectively. I assure you that buyers will see your home; they just may not like your price.

I know that this may be a little hard to hear, but we are in a highly competitive market and we need to be committed to adjusting to the signs of the times. The important thing to remember is that a home is worth only what people are willing to pay for it. It’s as simple as that. We need to make your home stand out above all others in the buyers mind and with today’s economic times the key items are PRICE…PRICE…and PRICE. Just remember that I am 100% committed and dedicated to make your sale occur. Are you?

When Will Real Estate Values Begin to Appreciate Again?

When will the nation’s property values begin to appreciate again? This is the $64,000 question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market. Like everyone else, I can’t predict the end of this crisis either, but what I can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again. Without an investment, real estate is as worthless as the dollar is today.

Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with mom and dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”. They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.

The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $800,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $800k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?

Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.

So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream” which has turned into the “American Nightmare”; she can only be rebuilt by hard working Americans, not by Wall Street.