The Wardlaw Team Southern Indiana Real Estate Blog

All the numbers are looking UP

2012-05-17T08:51:00-07:00

The Southern Indiana Realtors Association recently released the statistics for year to date sales thru April 2012 and in all most all categories the numbers show an increase over 2011. Number of sold units in April was up 7.02% and 13.61% year to date for 2012 vs. 2011. The median sale price was up 5.26% in April and up 4.27% year to date for 2012 vs. 2011. The other good news is that the absorption rate has gone from 12.5 months in February to 5.4 months for May. Sales are on the rise which may mean that we have either hit bottom, or we are very, very close. If you want to take advantage of this historic time in real estate history when the rates and low and the home prices are low - ACT NOW! Call us and we can help you make the right investment!

The time has come to MOVE

2012-04-30T09:46:00-07:00

All signs from the National Association of Realtors and the Indiana Association of Realtors indicate a strong first quarter of sales. In Indiana, the number of closed home sales increased 15%, average sale price increased 2.4% and new listings increased 2% in the first quarter for 2012 vs. the same time period in 2011. It certainly looks like the traditional best selling season of spring will be just that - a good season. Looking to buy, sell, or invest? Give us a call, we are available to help you make the best of this historic time for real estate.

FHA loan costs increase

2012-04-23T09:22:00-07:00

Despite low interest rates and low home prices, buyers who are getting an FHA loan now have less buying power due to increase monthly insurance premiums. Effective April 9th, the federal government increased the monthly insurance premium (MIP) it charges FHA borrowers. The additional money does not go towards equity, it will be used to protect the government from losses. With the minimum of 3.5% down on a $200,000 home, FHA buyers will pay over $200 per month for MIP. This increase could mean that buyers will be able to afford less or that buyers will have to save more money upfront in order to have the 5% down required for insured conventional loans.

Keller Williams Southern Indiana is on the Move

2012-03-30T02:18:00-07:00

Keller Williams Southern Indiana is one of the fastest growing real estate companies in the area. Experienced and new agents alike have found real value in the training and systems provided with Keller Williams. So not only has Keller Williams Southern Indiana grown in number of agents, but in number of real estate transactions. Keller Williams, in only 2 short years is one of the top companies in the area due to the strength, hard work, and relationships individual agents have built with their clients. Our growth has prompted a move to a larger office located at 4317 Charlestown Road, New Albany. Come by and check us out. We are open from 8 - 5:30 Monday thru Friday.

Moving Forward

2012-03-16T11:06:00-07:00

Two weeks ago today, life took a 180 degree turn for hundreds of families in the Southern Indiana area. A 50 mile long tornado swept through parts of our area in Southern Indiana leaving behind a path of destruction and devasation in it's wake. Lives were lost, people were seriously injured, schools, homes and property were destroyed. Life will never be the same for the people who experienced that Friday afternoon. But the spirit and determination of the people of Southern Indiana has come shing through. Within hours, everyone began pitching in with supplies, clothing, and money to help our neighbors - ones we knew and ones we didn't know. Volunteers have worked countless hours helping families clean up the storm damages and help in anyway possible. We are a resilent people and although life will never be 'normal' again, life does go on and in Southern Indiana we are working together to move forward and see brighter days ahead. The clean up process will be a long one and there is still a tremendous need for volunteers, if you'd like to check out places or ways to volunteer go to www.LifeinSouthernIndiana.com

Home Sales on a Rebound

2012-02-26T10:23:00-07:00

According to the National Association of Realtors, re-sale home sales increased 4.3 percent in January to a seasonally adjusted annual rate of 4.57 million. Sales have now risen nationally nearly 13 percent over the past 6 months. Sales of previously occupied homes are at their highest level since May 2010. Several factors appear to be responsible for the rebound. Mortgage rates have never been lower and there is a general optimism because hiring has picked up. The supply of homes on the market has plunged to 2.3 million, the lowest since March 2005. Locally, we are seeing very brisk activity. If you are thinking about moving - there has never been a better time. Experts believe we are at or near the bottom and the only place to go from the bottom is up. Don't wait until prices and interest rates begin to rise. Procrastination could cost you thousands of dollars. Whether buying or selling, call us to help you take advantage of this great market!

Prepping your home to sell

2012-02-01T11:54:00-07:00

Statistics show that homes that are staged will sell more quickly and closer to full price. In the current real estate market, buyers have many choices and is important that your home sparkle and shine to stand out among the competition. Here are simple steps from real estate pro and stager Barb Schwarz to help your home become a chosen one: SUPER CLEAN - Make the house shine from top to bottom including, but not limited to carpet, drapes, blinds, ceiling fans, and windows. CLEAR THE CLUTTER & FURNITURE - Remove unnecessary items from the countertops, bathtubs, and shower stalls. Keep only the necessities. A decluttered home helps buyers mentally 'move in' with their things. Furniture may overcrowd rooms and may need to be removed or rearranged. PREP YOUR LANDSCAPING - Check gutters and roof for dry rot and moss and make sure they are clean. Examine all plants: Prune bushes and trees, make sure no plants are blocking windows, remove any dead plants, and keep the lawn freshly mowed. ADD NICE TOUCHES - Coordinate towels in the bathroom in one or two colors only. Keep accessories restricted to groups of one, three, or five items. Make sure all lights and lamps are on for showings, and set an inviting mood. CALL THE WARDLAW REAL ESTATE TEAM - We have the experience to price your home to sell and a multi-faceted marketing approach to reach the right buyers for your home. When you need to sell, give us a call.

Looking up for 2012

2012-01-02T14:49:00-07:00

The year 2012 may be the turning point for real estate sales nationally and in Southern Indiana. Some areas of the country have already seen a small increase in sale prices indicating the bottom has finally been reached. Barbara Corcoran, the NBC Today Show's real estate contributor said that because homes and sellers are both very reasonable and interest rates are at an all time low, people should 'buy now' because that may all change by the end of the year.Locally, the number of new listings is equal to or slightly greater than the number of listings that are going pending each week. Also, new listngs that are well priced and in good condition are starting to sell well less than the average of 117 days on market.We are predicting that 2012 will be the year for real estate sales to increase and prices to stop dropping in Southern Indiana.Call us if you'd like to be a part of this great real estate year!

Real Estate Activity is Looking Good

2012-01-20T14:00:00-07:00

Southern Indiana Trivia Contest

2012-01-11T15:25:00-07:00

Happy 2012! This year the Wardlaw Real Estate Team is doing something fun in our effort to spotlight Southern Indiana. Each week we are going to post a local trivia question on our blog (www.lifeinsouthernindiana.com), on Facebook, Twitter, and LinkedIn. When you figure out the answer, you’ll head over to www.wardlawrealestateteam.com/contact/ complete the First Name, & Last Name fields, and in the Questions/Where Are You Looking portion, type your answer and then click on Send. Easy, right? Each month, we will draw a randomly selected winner, and present the winner with a local business gift card! Yippee!!! So on to the first question of the week (drumroll, please): What Georgetown native and New Albany High School graduate (& founder of the school’s first debate club) was once arrested for disregarding a town ordinance forbidding bicyclists to ride on the sidewalk, taken before a justice of the peace and fined $3, and was briefly expelled from NAHS after committing a prank, eventually straightened out his life of “disruptive behavior”, graduated at the top of his class, and served on the Supreme Court of the United States? That’s it, folks – answer away (only one entry per person, please) – we’ll post the answer next week and post another question. We’ll announce the winner on the first of every month for the previous month. (So, look for your email from us announcing that you’re our winner on Feb. 1!)

Always the Selling Season

2011-12-20T14:25:00-07:00

I’m sure if you have ever thought about moving, you probably think that the time to buy and sell houses is in the spring and summer, right? Nobody moves in the fall and winter, right? WRONG!!! Let’s think about this just a second more, there’s 12 months in a year, people switch jobs, have babies and outgrow their current home, have kids move out and want to downsize, people get bored with their current home and just get the bug to move, and houses are being built and remodeled year round – 12 months out of the year – so why would the good time to buy only be limited to 6 months – that’s absurd. Now really is a great time to buy and sell your new home. Rates truly are at a historic low, and there are some super homes out there waiting for you. People are buying and selling homes in December; we have 3 more closings before the year ends! Don’t let your biases towards summer home buying let you miss out on your dream home that’s waiting for you now. Check out what we have to offer at www.wardlawrealestateteam.com . If you do get the bug to move, Faye and I would be happy to help you put your home on the market, or help you find your new home.

Smart Buyers

2011-12-10T02:48:00-07:00

When first-time home buyers decide they are ready to buy, it is important for them to begin the process by carefully assessing their values, wants, and needs—both for the short and long term. This is a critical step since consultation sessions normally start with the buyers' values. Afterward, buyers can explore their wants and needs and, once defined, determine actual criteria. A recent study shows how important the following home-buying factors were to buyers: • List Price: 72% • Location: 69% • Neighborhood: 55% • Floor Plan: 37% • Square Footage: 28% • Schools: 22% By having the home-buying criteria in mind before walking into a consultation, buyers are off to a better start when meeting with their real estate agent. The consultation allows buyers to fill in any missing gaps within their values, wants, and needs.

Sales are up in Southern Indiana

2011-11-16T02:38:00-07:00

Great news - the Southern Indiana Realtors Association statistics for October indicate that home sales rose 18% over the number of sales in October 2010. Unfortunately, the median sales price of $110,000 was down 6% over last October and year to date the median sale price is down 4%. Does this mean we are starting to see some recovery of the real estate market in Southern Indiana? Only time will tell for sure, but with low interest rates and lower home prices the inventory is starting to shrink. The point is that homes are selling in Southern Indiana, so if you want or need to move don't let the media scare you. Call us, we can make it happen for you.

Reverse Mortgages

2011-11-14T14:17:00-07:00

Taking equity from your home in the form of a reverse mortgage seems like a wonderful way for seniors to obtain extra cash, especially since many have lost money in retirement funds. But there is a cost to using that money and other things to consider. The new federally backed Home Equity Conversion Mortgage Saver Loan has smaller borrowing limits, higher interest ratesthe loan is cheaper than older versions (0.01% of a home's value vs. 2%), borrowing limits are smaller and interest rates are higher. In addition, annual insurance costs of 1.25% of the home's value, closing costs, and upfront fees could mean big bucks. Payback on the loan is when it is sold or the owner moves. The longer a senior plans the stay in their home, the more the expenses are spread out. Alternatively, another more practical way for seniors to get cash might be to sell. Many seniors are living in a home that is much larger inside and out than they need. They may also have a home that has more steps than they utlimately need. Ray Brown, co-author or Mortgages for Dummies says that "Downsizing into a smaller home is one way to free up equity in your big, old empty nest". Need to downsize for whatever reason, give us a call. We specialize in helping seniors.

Joys of the Season

2011-11-01T17:09:00-07:00

Fall is the perfect season in Southern Indiana. The days are cool and invigorating and the nights just a bit nippy. Bright, sunny days explode with color. There are festivals, pumpkin picking, hayrides, football, and of course Halloween for all to participate in and enjoy. It is also a great time to buy or sell a home because people are moving inside for the winter and realize that their needs may have changed over the summer. Rates are terrific and the season is perfect - call us if you would like to take advantage of this wonderful time in Southern Indiana.

Mortgage Relief Program Extended

2011-10-25T20:18:00-07:00

President Obama announces extension of mortgage relief program to the end of 2013. The program will also be altered allowing more homeowners to take advantage of the program. The Federal Housing Finance Administration program is set up to allow homeowners with higher rate mortgages to refinance at current low rates. Initially, homeowners had to have a minimum of 25% equity in their home to qualify. With so many upside down, the program will be extended to include those with less equity. It is estimated that with these program alterations an additional 1 million homeowners will be able to take advantage of the program.

Buying Power

2011-10-19T19:51:00-07:00

You have most likely heard how tough the real estate market has been for the past few years, but what you should be hearing is what an excellent time this is to BUY A HOME. Rarely in real estate are interest rates and home prices both low – naturally, this creates a unique opportunity allowing people to BUY A LARGER HOME with little or no increase in your monthly payment. For Example: If you currently have a $150,000 home with a $120,000 at 6.5% interest rate on a 30 year loan – your Principal and Interest payment would be: $ 759 Now let’s assume you purchase a $250,000 home and have a mortgage of $200,000 – at 3.75% interest rate on a 30 year loan – your Principal and interest payment would be: $926

Great Rates Continue

2011-09-26T16:53:00-07:00

Mortgage interest rates remain under 4% putting homebuyers in Southern Indiana in a great position to buy or move up. In many cases, with todays low interest rates buyers can pay less to own a home than to rent a comparable home. Home buyers who are moving up can it most cases buy a bigger home that better fits their needs yet not raise their monthly house payment. 30 year fixed mortgages are running as low as 3.9%, while Rural Housing for first time homebuyers is as low as 3.5%. Unheard of rates when home prices are still suppressed - there has never been a better time to buy!!!

Southern Indiana Home Sales

2011-09-16T16:20:00-07:00

Southern Indiana Realtors Association has just released the statistics for home sales for the month of August 2011 and year to date. Interestingly, the number of homes sold was up 16% from August 2010. This is most probably due to the fact that by August of last year, the first time buyer's who purchased with stimulus money had already closed and there was the natural drop or lull in sales. While the number was up, the median sale price is down 6.78%. Year to Date statistics continue to show a decrease in both number of sales ad median sales price of about 5%.

Closed Home Sales Increased in July

2011-08-22T17:12:00-07:00

Home sales reported by the Southern Indiana Realtors Association (SIRA) showed an increase of 31% in July or 2011 as compared to July 2010. The Indiana Association of Realtor's (IAR) reported a similiar increase for the entire state with a 24% increase in sold listings. The IAR also reported an increase in median sale price and pending sales while the Southern Indiana Realtors Association indicated a decrease in median sale price of 3.2% for those July sales compared to last year. The numbers tend to indicate an increase in consumer confidence which when coupled with historic low interest rates, could spark an upward trend for real estate as we head into the fourth quarter.

Secrets to Quick Home Sales

2011-07-29T14:20:00-07:00

Today's market is tough. Buyer's still have many choices and if sellers want to sell quickly, then they need to take the time to get prepared before putting their home on the market. Buyer's expect a perfect home. They don't want an allowance for carpet or paint, they want to buy a home that is already in move-in condition. If work is needed, they will just move on to another home. Buyer's also expect a fair price. Of course, they want a great price, but they will be content to buy at a fair price. Seller's who price their home too high for the current market conditions are not even really "in" the market because buyer's know pricing and they will move on. The secret to selling - and even selling quickly, is simple: 1. Price your home competitively 2. Put your home in pristine condition, as if you were having a very special guest coming to visit . 3. Stage your home - get rid of the clutter so buyers can see all the home's assets.

Congrats to Southern Indiana Business Legends

2011-06-29T13:17:00-07:00

Both Schmitt Furniture ( "on the furniture corner at State and Main in New Albany") and Zestos have recently celebrated milestones of doing business in Southern Indiana. In this day of big "box stores" and less than great service, these two local businesses are a welcome exception. Schmitt Furniture is still owned and operated by the third generation of the Schmitt family that started the business in the same location 75 years ago. Schmitt Furniture has over a quarter of a block of quality furniture at reasonable prices and they still provide free delivery. Zestos is not in the original location where they started 60 years ago because they had to relocate due to road construction. But they are just 500 yards away! Still super service, great ice cream and a wonderful place to celebrate big and small milestones with your family. \ New Albany has to be proud of our two local legends - Schmitt Furniture and Zestos.

Government regulations could impede housing recovery

2011-06-23T10:09:00-07:00

On the threshold of a housing recovery, the government and it's regulations may actually be responsible for putting on the brakes. As a part of the Dodd-Frank Act that was passed in 2010, lenders can be exempt from risk reduction retention required securities if borrowers meet the guidelines of QRM (Qualified Residential Mortgage). Unfortunately, one of the guidelines is that borrowers have 20% downpayment. Over 69% of all loans in 2010 had less than 20% down. Having more down does not necessarily equate that buyers will be less likely to default, but it will mean that less buyers will be able to buy. Please be vocal in talking to your Congressional Representatives in getting this changed so that we can continue to move forward and NOT backward with the housing recovery.

Convenience Buyers

2011-06-20T07:06:00-07:00

In today's economy, buyers are choosing closeness to work and play over the size of their home. Whether it is high gas prices or a desire to be more green, 56% of buyers responding to a survey by the National Association of Realtors say they prefer to live in a walkable neighborhood over one that requires more driving between work, home, and recreation. 77% are looking for homes where there are abundant sidewalks and 50% prefer homes where there are existing public transit systems. 59% said they would choose a smaller home if they could have less than 20 minute commute time.

What it takes to sell in today's market

2011-06-15T07:35:00-07:00

Selling homes in Southern Indiana is a challenge just like almost everywhere in the country. But homes are selling! The secret to selling is for sellers to follow a few simple "rules". Set a realistic list price - buyers are very knowledgeable about the market and values, they will decide quickly whether to look or pass based on the price. Get the home in top condition - with the popularity of all the home fix-up television shows buyers expect to see all homes in move-in condition, they are not looking for fixer-uppers unless the price is deeply discounted. Be flexible in showing the home - buyers generally will not come back if they can't see the home the first time they choose to see it. Be willing to adjust the list price - even with the best intention, the initial pricing could miss the mark. The National Association of Realtors study says that if you have no offers after 10 showings or 8 - 9 showings with no offers, the market is telling you the home is overpriced. Too many sellers sit too long on a price that isn't working. Don't be afraid to drop the price early and often.

Southern Indiana Home Expo

2011-06-05T07:38:00-07:00

The Southern Indiana Home Builders Association's Home Expo is open at the Copperfield development in Georgtown, IN. Six homes beginning from the mid-200's are decorated and on display now thru Sunday, June 12th. The homes feature finished basements, hardwood flooring, granite, and the latest in open design living. Just 15 minutes from downtown Louisville. Take the Georgetown exit off I-64 W.

Time for Seasonal Sprucing up

2011-06-02T00:50:00-07:00

There is no time like the present to do the spring and summer home maintenance. The long winter and early spring weren't just tough on people, it is tough on our homes too. Preventative maintenance is always less expensive and time consuming than waiting until a real problem develops. Some important maintenance items to address come from Shannon Petrie, assistant editor of HGTVPro.com and DIYNetwork.com. Have your central air unit cleaned and serviced by a licensed HVAC professional, clean your gutters and downspouts, check smoke detectors, check caulking aournd windows & doors, pressure wash decks, patios, and other exterior surfaces, seal or stain decks, trim shrubs back from your home (especially around air conditioners & crawl space access), scrap & repaint any exterior surfaces where there is peeling paint. When you do these items early in the season, you'll be able to relax and enjoy your home the rest of the summer!

Unemployment Mortgage Bridge Program

2011-04-22T07:21:00-07:00

Both Indiana and Kentucky have state programs that will make mortgage payments on their primary home for unemployed individuals. The programs have very specific guidelines that must be met, but up to $18,000 or 18 months of mortgage payments can be made for people living in "hardest hit" counties like Crawford, Orange, and Scott. In Clark, Floyd, Harrison, & Washington counties payments could be made for up to one year or $12,000. Hoosiers must be unemployed and eligible for unemployment insurance and delinquent on their mortgage as a result, but have record of 6 months of timely payments prior to being unemployed. There are adjusted median income and reserve requirements as well. Applications can be made online at www.877gethope.org or by phone at (877) 438-4673.

New Construction Starts are UP

2011-05-08T09:52:00-07:00

New construction is on the increase for the first time since 2008. The rise in new construction starts across the country is also being seen in Southern Indiana. Builders and developers who have gone out of the business or been quietly sitting on the sidelines are now getting back in the game. New construction is obviously one small piece of the puzzle, but it is giving hope that there is at least a dim light at the end of the tunnel for the tough housing market both locally and nationally. New construction also helps by putting people to work. There is or will start to be an increase in the need for carpenters, plumbers, electricians, painters, landscapers, and in all the industries that supply products for homes.

Possible Government Shutdown Affect on Real Estate

2011-04-08T11:59:00-07:00

Possible Government Shutdown affects Housing Market Hopefully the federal government will come to an agreement today on the federal budget and funding before the midnight deadline. A government shutdown would essentially throw the forward momentum happeningin real estate into neutral. In recent years, many buyers have turned to FHA because of the lower downpayment and higher debt ratios. FHA loan funding would come to a halt with a government shutdown. Also, at issue is the fact that FHA mortgage insurance premiums are set to increase effective for case numbers assigned on or after April 18, 2011. VA and rural housing loans will also be left without funding. Buyers scheduled to close the first of next week may be left out in the cold until or unless the government steps up to the plate and keeps the federal government functioning. Not directly relevent to real estate, but interesting is the fact that congress will still receive a paycheck if the government shuts down, but our armed forces serving at home and overseas will NOT be paid.

Mortgage Interest Deduction

2011-03-28T08:43:00-07:00

Mortgage Interest Deduction The National Association of Realtors is making a call to action. Please contact your Congressional Representative and ask he/she to support the bi-partisian resolution that affirms the value and importance of the mortgage interest deduction. House Resolution 25 supports the current mortgage interest deduction which is very important in this still fragile housing market.

By Referral Only

2011-03-25T00:09:00-07:00

By Referral Only Spring has sprung, but flowers aren't the only thing coming around your home. This is the perfect season for home maintenance scam artists. As we enter the Spring season and get out more, we realize that our home may need paint, landscaping work, driveway repair, or roof repair. And while there are many reputable service companies and individuals in our Southern Indiana area, there are also scam artist who will take your money and not to the work or do the work improperly. Signs that you might be talking to a less than reputable contractor are: drive an unmarked vehicle, ask for cash upfront before any work is started, tell you they just happened to be in the neighborhood and could do your job today. And remember, if it sounds too good to be true it probably isn't. Don't be taken in by these scam artists. To avoid these type of contractors, don't automatcally hire the first contractor you meet. When you need work done at your home take the time to ask for referrals from your family, friends, and co-workers. Get several estimates, ask if the work comes with a written guarantee, and know just how payment it expected.

Great time to buy

2011-03-20T17:01:00-07:00

Mortgage rates for 30 year conventional loans have once again dipped below 5%. Below the 5.2% first quarter average. Home prices are still low, making this a great time to purchase a home. Even if you are a move up buyer and may lose money selling your home, the amount you gain from buying in a depressed market coupled with low interest rates could mean tremendous savings when you look at the big picture. Real estate really is a strong investment. Despite the stunning crashes of the last few years, Forbes Stephane Fitch reported that real estate in the US is actually still worth 58 percent more per square foot than it was in 2000. This may be the last window of real opportunity to buy with interest rates low and selling prices low. Don't wait - there is only a brief second when the market reaches the bottom and the prices start to rise again!

FANTASTIC INTEREST RATES

2010-05-28T11:12:00-07:00

RECORD LOW INTEREST RATES Local lenders are reporting record low interest rates. Rates for 30 year fixed FHA loans are as low as 4.75% Rates for 30 year fixed Conventional loans are as low as 5% With rates this low, home buyers can purchase more home for less or purchase the same value of home with a lower monthly mortgage payment. A lot of good buys have just gotten better! Contact us if you'd like to receive a list of our "GOOD BUYS".

Foreclosure can impact your credit score

2010-05-27T05:51:00-07:00

Everyone is aware that late payments affect your credit score, but exactly how much was unclear. Recently, Fair Issac, which developed FICO scores, revealed some estimates of point score declines with respect to mortgage delinquency issues such as late payments, foreclosure, or bankruptcy. Fair Issac created two hypothetical consumers, one who starts with an average score of 680 and the other with a very good score of 780. FICO scores range from 300 to 850. Here are average credit score point reductions: 30 days late: 40 – 110 points 90 days late: 70 – 135 points Foreclosure Short Sale Deed –in-lieu: 85 – 160 points Bankruptcy: 130 – 240 points Five main factors that affect a credit score: Payment history (35%), Amounts Owed (30%), Length of Credit History ( 15%), New Credit (10%), and Types of Credit Used (10%). Beth Wardlaw Broker, CRS, GRI, e-Pro WARDLAW Real Estate Team Keller Williams Realty Southern Indiana Cell: 502.807.2384 Fax: 502.554.9585 WardlawRealEstateTeam.com Got the "BUG" to Move?

Verification of Homestead Exemption

2010-05-18T08:50:00-07:00

The Indiana House recently passed a bill requiring residents to verify that they are still eligible for the homestead tax credit. Residents will be asked to complete a Homestead Verification Form that will be sent by the County Auditor’s office and included in the property tax bill. Some counties may begin seeing this as early as the 2009 payable 2010 tax bill, but the form is not due until December 31, 2012. Although this gives individuals ample time, the best idea is to return it as soon as it is received. The County Auditor should update the database from the Sales Disclosure completed at the closing, however it is best to check with the County Auditor to confirm the status is updated. Failure to complete and return this form prior to December 31, 2012 may result in loss of the homestead exemption beginning with the Spring 2012/payable 2013 tax bill. Loss of this exemption could have a significant impact on property taxes.

New Albany Schools Redistrict

2010-04-01T18:00:00-07:00

NEW ALBANY - FLOYD COUNTY SCHOOLS REDISTRICT In an effort to work within budget cuts, the New Albany - Floyd County schools have decided to close 4 elementary schools. The schools that are closing are Silver Street, Pineview, Galena, and Childrens Academy. The redistricting will mean a lot of changes for students, families, and teachers. Proposed boundaries for the 2010 - 2011 school year can be found on the corporate web site: http://www.nafcs.k12.in.us/ Another change that the school corporation will implement is placing 5th graders in the junior highs. Change is always difficult, but hopefully these changes will be long range plans that will benefit everyone in the community.

Slow Recovery in Home Markets

2010-03-10T15:40:00-07:00

real estate recovery is slow, but data indicates positive signs Although housing is still slow and home prices are still low in Southern Indiana and the US. there are positive signs that indicate a slow recovery is in process. Home supply is the lowest it has been in a long time. There are 10% less homes on the market from last year and the lowest since March 2006. Affordability stands at 14.1% - well below the historical average of 25%. Interest Rates are still hovering around 5% for 30 year loans and even less for 15 and 20 year loans. Foreclosures - For the first time in almost 3 years, the number of homeowners falling behind on their loans is declining. Tax incentives The tax incentives have not resulted in the increase of move-up home buyers as the government was hoping for when it extended the tax credit to homeowners moving up after living in their home for 5 years. Both the move up ($6500) tax credit and the first time homebuyers ($8000) tax credit is set to expire the end of April. Homebuyers must have an accepted offer by 4/30/10 and close by 6/30/10 There is no indication that either tax credit will be extended, so buyers wanting to get in on the credit should get busy.

Changes in FHA financing

2010-02-15T21:25:00-07:00

Changes in FHA financing were announced on January 20th Since the number of borrowers using FHA financing has drastically increased in the last year changes are being made to help protect the agency and make sure funds are still available without getting assistance from the federal government. Upfront Premium increased The Mortgage Insurance Premium (MIP) will be increased from 1.75% to 2.5% Decrease in Seller Assistance Sellers can only pay a maximum of 3% towards buyer closing costs, down from 6% Increased downpayment for under 580 credit score Most lenders will not lend for borrowers with under 620 credit score, but FHA will lend to those with under 580 providing the borrowers put a minimum of 10% down The 90 day "flipping" rule Homes will not have to be held for 90 days before they can be sold FHA is an important component in the market. Over 30% of all loans between September 2008 and September 2009 were FHA. FHA works for first time homebuyers, buyers with not a lot of down payment, and buyers with less than perfect credit.

The importance of home staging

2010-02-02T00:46:00-07:00

Markets may change, but the key elements for getting homes sold remains the same: location, price, & condition. Homes will sell in any condition, but not necessarily for the price that the seller desires. Top dollar requires top condition. Given the same price for two identical homes, the home that has been staged will sell quicker and for closer to full price. As listing specialists a part of our service is to help our clients in staging their homes. We help sellers create something special that buyers want. With a little extra time & effort upfront, our clients are reaping the rewards when their home sells more quickly and they get to move on.

Tips to Save Energy and Add Value

2010-01-22T15:35:00-07:00

When it comes to energy efficiency, look for smart features and expertise to help you save energy and money and add value to your home. 1.Begin with a right-sized home. If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy through excessive heating and cooling costs. If it’s too small, you’ll feel cramped and uncomfortable. It’s a big investment, so seek balance and buy it “right” from the outset. 2.Purchase ENERGY STAR appliances such as your TV, dishwasher, washer and dyer, and microwave. And especially the refrigerator, as it alone contributes about 10 percent of the energy use in a home. Also, unplug electronics not in use or turn off power strips to avoid phantom charges. 3.Install efficient lighting such as compact fluorescent (CLF) or LED bulbs in every fixture. Lighting accounts for about 6 percent of an energy bill each year. 4.Get an energy audit and have tests performed to identify ways of improving your efficiency. You can always upgrade your heating, ventilation, and air conditioning (HVAC) system as well as your thermal envelope, which includes insulation, windows, and doors and the seals or weather-stripping around them. Visit energy.gov/energytips for more tips.

First-Time Homebuyer Tax Credit Scenarios

2010-01-22T10:37:00-07:00

The following information is reproduced directly from the IRS.gov website. S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed? A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit. S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence. S3. A taxpayer owned her principal residence. Several years ago, she decided to relocate to a rented apartment, but did not sell the former residence. Instead, she rented it out to tenants. Now the taxpayer plans to buy another house and make it her new principal residence. Does she qualify for the first-time homebuyer credit? A. A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years. S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify? A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return. S5. Taxpayer purchased a home on April 24, 2008, while she was separated from her husband. Later in the year, they reconciled and were living together at the end of 2008. She has not owned a home since 2004 but he owned one which he sold in 2006. They remained married the entire time. Is the taxpayer eligible for the first-time homebuyer credit? A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The wife may not take the credit even if she filed on a separate return. S6. I have been estranged from my spouse for over three years and file married filing separate. I don’t know if my spouse has owned a main home in the last three years, but I have not. If I buy a house in 2009 that otherwise qualifies for the first-time homebuyer credit, can I claim the credit? A. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. If your spouse has not owned a main home in the last three years, then you may claim the credit. S7. I am separated from my spouse and considered unmarried, and qualify for the unmarried head of household filing status. My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit? A. No. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The taxpayer may not take the credit even if filed on a separate return. S8. A qualifying taxpayer bought a home in August 2008 that needed a lot of work before occupying. They finished the renovations and moved in the home in January 2009. Can they claim the $8,000, since they did not occupy the home until 2009? A. No. Taxpayers who purchase an existing home and renovate the property before moving in are eligible for the first-time homebuyer credit based on the date of purchase, not the date of occupancy.

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

2010-01-22T10:22:00-07:00

New legislation signed on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law: extends deadlines for purchasing and closing on a home authorizes the credit for long-time homeowners buying a replacement principal residence raises the income limitations for homeowners claiming the credit Q. I bought my home in 2009 (early) and filed my 2008 tax return claiming the $7,500 first-time homebuyer credit that has to be repaid. Now the expanded law provides for an $8,000 credit that doesn’t have to be repaid. What do I need to do to get the $8,000 credit that doesn’t have to be paid back? A. You can file an amended return. Q. If I purchase a home in June 2009, and have already filed my 2008 tax return, can I amend my 2008 return or will I have to claim it on my 2009 return? A. You can either file an amended return to claim it on your 2008 return or claim it on your 2009 return. Q. I am in the process of buying a home. Can I claim the first-time homebuyer credit now? That would allow me to use the refund for a down payment. A. No. You may not claim the credit in anticipation of a purchase that has yet to happen. Until you have finalized the purchase of your home, which for most purchasers occurs at the time of the closing, you do not qualify for the credit. IRS news release 2009-27, First-Time Homebuyers Have Several Options to Maximize New Tax Credit, contains details for filing options if the home is purchased after April 15, 2009. Q: When must I pay back the credit for the home I purchased in 2009? A: Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence. Q. If I claim the first-time homebuyer credit for a purchase in 2009 or early 2010 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it? A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. Q: I’m already a homeowner. If I buy another home after Nov. 6, 2009, to use as my principal residence, do I have to sell my home to qualify for the homebuyer tax credit? A: No. If you meet all of the requirements for the credit, the law does not require you to sell or otherwise dispose of your current principal residence to qualify for a credit of up to $6,500 when you buy a replacement home to use as your principal residence. The requirements are that you must buy, or enter into a binding contract to buy, the replacement principal residence after Nov. 6, 2009, and on or before April 30, 2010, and close on the home by June 30, 2010. Additionally, you must have lived in the same principal residence for any five-consecutive-year period during the eight-year period that ended on the date the replacement home is purchased. For example, if you bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/17/09) Married and Co-Purchasing Homebuyers Q. I am a long-time resident (have owned and used my current home as a principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new residence) but my spouse has lived there for only three years. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit. (12/14/09) Q. I am a long-time resident and current homeowner and my spouse is a first-time homebuyer (has had no ownership interest in a principal residence during the three-year period ending on the date of purchase of a new principal residence) and we purchased a new principal residence. Can we qualify for either the first-time homebuyer credit or the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both you and your spouse must be first-time homebuyers in order to qualify for the first-time homebuyer tax credit. Since you had an ownership interest in a principal residence during the three-year period ending on the date of purchase, neither you nor your spouse qualifies for the credit. Similarly, both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit. (12/14/09) Q. I am a long-time homeowner of a principal residence and my spouse is a long-time homeowner of a different principal residence. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence? A. No. Both spouses must have owned and used the same previous principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new principal residence to be eligible for the credit. Since you and your spouse owned and used different principal residences, neither of you qualify. (12/14/09) Q. How does the allocation provision work when unmarried taxpayers purchase a home together and both qualify for the first-time homebuyer credit under different tests? A. Co-purchasers who are not married may allocate the credit using a reasonable method. A reasonable method is any method that does not allocate any portion of the credit to a taxpayer who is not eligible for that portion of the credit. The maximum credit for a taxpayer who qualifies under the long-time resident test is $6,500, and the maximum credit for a taxpayer who qualifies under the first-time homebuyer test is $8,000. One example of a reasonable method is to allocate $6,500 to the long-time resident homebuyer and $1,500 to the first-time homebuyer. (12/14/09) Home Construction Q. I plan to build a home and occupy it in 2009 or early 2010. Can I claim the first-time homebuyer credit now and use the funds toward the down payment or other ongoing construction costs? A. No. To qualify for the first time home buyer credit, the residence must be purchased. By statute, a residence which is constructed by the taxpayer is treated as purchased on the date the taxpayer first occupies the residence. (05/06/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before July 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract qualifies as a binding contract, entered into on or before April 30, 2010, to close on the purchase of a principal residence on or before June 30, 2010. If you occupy the home on or before June 30, 2010, and meet the other requirements, you can take the credit. (12/17/09) Q. I entered into a written home construction contract with a homebuilder before May 1, 2010, and the contract provides for completion of the home before September 1, 2010. Can I take the credit for the construction costs? A. Your home construction contract does not qualify as a binding contract to close on the purchase of a principal residence on or before June 30, 2010. Therefore, you do not qualify for the two-month extension of the deadline for completing the purchase in the case of a binding contract. However, if you occupy the home on or before April 30, 2010, and meet the other requirements, you can take the credit. If you do not occupy the home on or before June 30, 2010, you cannot take the credit. (12/17/09)