Indianapolis short sales and foreclosures present both an exciting opportunity and a unique challenge to home buyers. Like many buyers, you may be wary of pursuing these distressed properties, assuming that the time and uncertainty involved is not worth the potential gain. However, in our Indianapolis housing market, where no neighborhood is immune to short sales and foreclosures, distressed properties are almost impossible for buyers to avoid. 

As scary as they might seem, distressed properties can offer buyers the deal of a lifetime.  And, according to research conducted by Keller Williams Realty, many of the myths and misconceptions associated with distressed properties are just that: myths and misconceptions. Here are the findings of the KW research, based on the responses of more than 2,500 KW associates who have worked with distressed properties:

Buyer Concern: It will take forever to find the property I want.

Research Results: 3 out of 5 REO buyers and 1 in every 2 short sale buyers spent less than one month searching for a home before writing an offer.

Buyer Concern: I may have to write dozens of offers before one gets accepted.

Research Results: 7 out of 10 distressed property buyers wrote three or fewer offers before one was accepted.

Buyer Concern: I know I am getting a good deal, but will the cost of repairs eat up the savings

Research Results: Half of REO buyers and almost one-third of short sale buyers spent less than $5,000 in repairs.

So there you have it! Distressed property myths put to rest! If you are in the market for a new home, don’t disregard distressed properties just because you think the hassle is too great. Instead, seek out an experienced real estate agent, preferably one with the CDPE (Certified Distressed Property Expert) designation to help guide you through the process. After all,  a good deal and a relatively easy real estate transaction don’t have to be mutually exclusive!

Wonder what there is to love about Indianapolis Indiana? Plenty! Here are the Haddad Team’s top picks, in no particular order!

1. Manageable Traffic
The average commute time for Indianapolis is only 21 minutes, according to US Census statistics. Although that’s only 3 minutes less than the nation’s average commute time of 24 minutes, it all adds up!

2. Reasonably Priced Housing
Indianapolis is consistently named to the Forbes.com list of Most Affordable U.S. Real Estate Markets, and 2009 was no exception, when the Circle City landed the No. 12 spot for affordability on the Forbes.com list of America’s Best Bang-For-The-Buck Cities.

3. Indianapolis Greenways and Parks
More than 188 parks and seven major bike/pedestrian trails are located in Marion County alone. The Monon Trail starts downtown and continues north all the way to Carmel. The White River Wapahani Trail is the longest trail in Central Indiana, and covers 27 miles tracing the White River. Indianapolis parks offer lots of green space for recreation, relaxation, and a whole lot of fun!

4. Indiana State Fair
Every August, Hoosiers from around the state travel to Indianapolis to partake in the festivities in the Indiana State Fair. The 150-year-old tradition offers something for everyone, including carnival rides, yummy treats (fried Coca-Cola!), 4-H competitions, and big name concerts.

5. Sports
Sports fans have plenty of reasons to cheer in Indianapolis. The Colts, Pacers, and Fever all offer exciting professional competition. The Indianapolis Indians minor league baseball team and the Indiana Ice hockey team also provide great entertainment. The Indianapolis Motor Speedway makes Indy the mecca for racing fans with the Indianapolis 500, Brickyard 400, and Formula One races each year. The NCAA headquarters also calls Indy home.

6. Monument Circle
Indianapolis is home to the most war memorials of any city in the country. And none is more impressive than the towering limestone and bronze statue at the intersection of Meridian and Market street. This Indianapolis landmark, a memorial statue of Indiana pre- World War I war military heroes, gives a spectacular view of the city and is the site of many festivals and celebrations throughout the year.

7. Museums of Indianapolis
The city is home to several unique museums showcasing everything from American Indian artifacts to modern art to sports and more! The Indianapolis Children´s Museum, the largest of its kind in the country, spreads out over 14 acres of land and is filled with exciting hands-on activities for kids of all ages. The beautifully renovated Indianapolis Art Museum has displays for all tastes from French impressionists to classic Asian art!

8. White River Gardens & Indianapolis Zoo
Located on the banks of the White River, this facility is the only nationally-recognized zoo, botanical garden, and aquarium in one. Pathways through the gardens allow you to experience the beauty of more than 1,000 different plant and butterfly species. Special exhibits at the zoo this year include Cheetah: The Race for Survival.

9. Winter, Spring, Summer & Fall
All four seasons are represented in Indianapolis, and each is accompanied by local festivals, events, and traditions.

10. Indianapolis Symphony Orchestra
One of only 18 year-round orchestras makes Indianapolis its home at the Hilbert Circle Theatre on Monument Circle. The Indianapolis Symphony Orchestra performs a variety of concerts, including the extremely popular Symphony on the Prairie summer concert series at Conner Prairie in Fishers.

I’ve often heard the adage, “Your home is only worth whatever someone is willing to pay for it.” True? Maybe. Helpful? Not so much. If you’re considering selling or refinancing your Indianapolis real estate, you probably want a firmer estimate of what fair market value might be. Two ways to determine property value are through an assessment or an appraisal. Why, you might ask, are there two different methods? And what, exactly, is the difference between the two? Good questions! And here (I hope) are a few good answers.

Most Indiana homeowners recently received a property tax bill, which included an assessed value of the property. An assessment is used to determine property taxes. Your local assessor uses a formula based on recent sale prices of comparable home and other factors to estimate the value of your home. If your home’s stated assessed value seems low (or, lately, high) don’t panic. While an assessment might be useful in determining tax rates, it is probably not the best indication of your home’s true value since the assessor is often basing his estimate on outdated data that doesn’t take into consideration renovations, improvements or market fluctuations. What to do if you disagree with your Indianapolis property tax assessment.

Appraisals are usually a much more accurate estimation of your home’s value since they factor in comparable sales, condition and location of the property, size and number of rooms and type of construction. An appraisal is conducted by a certified real estate appraiser who is trained in the art of figuring out exactly what your home is worth. An appraisal is important because it affects the amount of money that you can borrow or whether or not you can get a home equity loan.

Comparable sales are one way an appraiser can determine the value of your home. This process entails looking at all of the houses in your neighborhood that have sold within a certain time frame. Your house is then “compared” to the others. An appraiser will use the sale price of these homes as a starting point and then add or subtract based on the particular features of your home. An appraiser primarily takes into account standard features such as square footage, location, lot size, garages, fireplaces, etc. Secondary features that add marginal value to your home include upgraded flooring such as ceramic tile or hardwood, upgraded light fixtures and faucets, countertops, moldings, a sprinkler system or cabinetry.

Current market value is another method appraisers use to determine your home’s worth. The appraiser determines what it would cost to build your house from scratch and uses that number to arrive at the current market value.

Another good way to find out the value of your home is to ask your Indianapolis Realtor for a comparative market analysis (CMA) of your home which shows average listing price, sales price, square footage, and other important details of homes that are on the market, pending, or recently sold in your neighborhood.

Request a CMA

If you’re looking for something new and different to do this weekend in Fishers Indiana, you’re in luck! Saxony Market celebrates its grand opening Saturday, May 15 from 8 a.m. to 5 p.m. The market, located within the Saxony subdivision at 131st Street and Olio Road, will feature a garden center and fresh produce from a variety of local vendors. Grand opening festivities will include activities for children and a variety of musical performances.

Rita’s Backyard will serve as the garden center anchor, selling annuals, hanging baskets, perennials, herbs and vegetables. Rita’s Backyard will be open daily within the Saxony Market; Monday through Saturday 9 a.m. to 6 p.m. and Sunday 11 a.m. to 3 p.m.

Saxony Market vendors will sell fresh produce, including seasonal fresh vegetables and fruit, meat products (pork, sausages, hams, pulled pork, elk, and beef) along with specialty items including coffee, gourmet cookies, scones and baked goods. Produce vendors will be open Saturdays only from 8 a.m. to 2 p.m. Extended hours will begin July 10.

Check back next week for pictures and my review of  Saxony Market!

For more information about the Saxony Market, visit www.saxonymarket.com.

About Fishers Indiana

Saxony in Fishers Indiana

You’ve found your Indianapolis dream home, negotiated a great price and agreed on a closing date that’s right around the corner. The hard part is done, right? Not so fast! If you’re buying a home you need a home inspection. A professional evaluation of the major mechanical and structural systems of your property is a critical step in the home buying process and one that no buyer should forgo.

What to expect from a home inspection

Whether you’re an experienced homebuyer or a newcomer to the joys of home ownership it’s always helpful to know what you can (or can’t) expect from a home inspection.

A home inspection is… a visual examination to determine the property’s present condition, based on age, and a working inspection of a property’s major mechanical and structural systems. A home inspection benefits the buyer because it can provide peace of mind and possibly a better price on the property you are purchasing. Home inspections educate buyers on the condition of the home and can minimize costly surprises down the road. If serious defects are revealed during the inspection, you have the opportunity to request that the seller make repairs or offer you a credit to make those repairs yourself.

A home inspection is not … a warranty or guarantee of future life expectancy of any or all of the components inspected. Home inspections are not intended to encourage or discourage you from buying a home. They are simply intended to give you the necessary information to make the best decision possible.

What’s expected during the home inspection process?

Your Indianapolis REALTOR®… should inform you about the value of a home inspection before a purchase agreement is written. If that important bit of information isn’t communicated, you might want to find a different agent. If you don’t think you fully understand home inspections, request that your agent provide a copy of the Metropolitan Indianapolis Board of REALTOR®’s Inspection Addendum, which gives buyers and sellers comprehensive information about the inspection process. Your agent also should provide you the names of at least three qualified home inspection companies from which to choose.

Your Indianapolis home inspector … should provide a thorough written evaluation of the property’s condition, including any potential safety hazards or possible big ticket repairs. A typical inspection includes:
• External conditions & surfaces
• Roof, attic, insulation & ventilation
• Plumbing & electrical systems
• Appliances
• Heating & cooling systems
• Foundations, slabs & floors
• Walls & ceilings
• Garage, walls & driveway
• Basement & crawl space
Additional inspections and tests such as termite and radon also may be performed at your request and at an additional cost. Some tests or inspections may be required by lenders.

You … should be present for the inspection! Before you choose an inspection company, ask if buyers are encouraged to tag along on the inspection. If the answer is “no,” find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. First-time homebuyers, in particular, can benefit from a home inspection because an inspector can provide a great education about how to operate the home’s systems and give tips on improving energy efficiency and maintaining the home in general. Attending the inspection will also help you make better sense of the final written report.

Cost of a home inspection

The cost for an average, single-family home inspection varies depending upon the size and complexity of the house. An average home inspection normally takes between two and three hours. The time and cost may increase if the house is extremely large, has more than one heating and/or cooling system, etc. Most home inspection companies will provide a firm cost quotation before the inspections. The person requesting the inspection is usually responsible for paying the inspection and test fees at the time they are performed.

For more information about home inspections visit the American Society of Home Inspectors Web site.

Can you tell me if there is anything I can do if I disagree with the [property]tax bill? I think my house is worth a lot less than their stated value. I didn’t see any info about an appeal process.

A good question recently posed by one of our clients.

The first thing you should know about property tax appeals is that there are two categories. Our client’s disagreement with her property taxes falls under Subjective Appeals, which address disputes about whether or not the property’s assessed value is consistent with the property’s market value. A subjective appeal can be based on the following:

• Sale of the subject property

• Sales of comparable properties

• Listing prices

• Offers to purchase

• An appraisal prepared by a licensed appraiser

Objective appeals are based on property amenities that you can physically see or measure, such as whether or not there is a basement or the property’s square footage.

Once you’ve determined which type of appeal you need to file, the rest of the process really isn’t as confusing or difficult as you might expect. Questions about or issues with your property tax bill should be directed to the place where it all begins—your township or county assessor. Contact information for your local assessing office should be available online. Just try Googling Hamilton County Assessor’s Office, for instance.

To file an appeal you must simply inform your local assessing official in writing that you are doing so. An appraisal is not required as evidence of the grounds for your appeal. Form 133, Petition for Correction of an Error, is available online for filing an Objective Appeal. Form 130 is available online for the purpose of filing a Subjective Appeal, but it isn’t necessary. You can hand-write your appeal on a cocktail napkin if you wish! Just be sure to include the following information:

• Taxpayer’s name

• Address and parcel or key number of the property

• Address and telephone number of the taxpayer

As you might imagine, time is of the essence when filing an appeal. If you receive notice of an assessment (Form 11) and plan to appeal, you should do so within 45 days of the notice. If you do not receive Form 11, your tax bill serves as the notice of assessment and you should initiate an appeal within 45 days of the date of the tax bill or May 10, whichever is later.

What, you might ask, do you do about paying your taxes while you are simultaneously appealing them? If you have initiated an appeal within the 45-day time frame, you are required only to pay the amount of taxes based on the immediately preceding year’s assessment pending a final determination of your appeal. For instance, if your 2008 tax bill (payable in 2009) was based on an assessed value of $200,000 and your 2009 tax bill (payable in 2010) is suddenly based on an assessed value of  (gasp!) $500,000, you must pay only the amount of taxes based on the $200,000 assessment. Whatever you do, don’t do nothing! If you do not pay at least the amount of your previous tax bill when the current installment is due, you will be considered delinquent and assessed penalties based on that delinquency.

Two final notes: If  your property tax assessment has increased by more than 5% from the previous year, the burden of proof falls to the township or county assessor. And, be sure to actually look over your entire property tax bill as soon as you receive it. I found a mistake on mine that I probably wouldn’t have noticed if I hadn’t been looking carefully!

Property Tax Assessment Appeals Frequently Asked Questions

Homeowners in some Indiana counties may already have received the pretty pink sheet of paper known as the homestead deduction verification form that will be included with 2010 tax bills. Those who haven’t should be on the lookout.  By 2013 Indiana homeowners must verify their eligibility for the homestead tax deduction or risk losing the significant savings it provides. The Indiana government Homestead Verification Fact Sheet provides the 5 Ws of verification requirements.

Who?
Every individual or married couple currently claiming the homestead deduction will receive the form. (Some counties may mail the form to every taxpayer, even those not claiming the homestead deduction.)

What?
The pink form included with tax bills.

When?
The homestead verification form will be mailed with 2010, 2011 and 2012 tax bills and must be completed at least once by January 1, 2013.

Where?
Individuals or married couples claiming the homestead deduction must complete the form and return it to the county per the instructions included on the form. The form is not required to be returned in person.

Why?
Individuals or married couples claiming the deduction must complete this form to verify eligibility and to provide identification numbers (the last five digits of both the driver’s license and social security numbers), which will be
used to populate a secure homestead database and prevent homestead fraud.

Q. What happens if I do not complete the form?
A. Your homestead can be removed beginning with the 2012-pay-2013 property tax bills if you do not complete the form by January 1, 2013. You must complete the homestead verification form at least once in either 2010, 2011 or 2012. If you have not completed the form after the 2012 tax bills are mailed, you will receive a final notification letter from the county auditor requesting verification and identification numbers.

A standard homestead deduction is worth about $300 in taxes. For example, on the average, an owner of a $100,000 home with a homestead deduction would pay about $1,200 a year in taxes, but without the deduction the homeowner would pay $1,500 in taxes.

The standard homestead deduction is worth $45,000 in assessed value. A home with a $100,000 assessed value would then have taxes calculated on an assessed value of $55,000. The homestead deduction also allows a taxpayer to receive a special supplemental deduction, valued at 25 to 35 percent.

Additional information regarding the homestead verification form is available
at http://www.in.gov/dlgf/8455.htm.

Indianapolis real estate

Tomorrow is tax day, and although you may still be feverishly working on your 2009 returns, it’s never too soon to look to the future — April 15, 2011, shall we say — and ways to save on your energy bills as well as your taxes.

Energy Efficient Tax Tips

First of all, know that energy efficient home improvements are a tax credit, not a deduction. That means a qualifying project reduces the actual taxes you owe, not your taxable income. If you are planning to embark on an energy efficient improvement that you will claim on next year’s taxes,hang onto receipts and product labels and use IRS Form 5695 when filing.

Some simple and relatively inexpensive qualifying improvements include increasing insulation or insulating items such as doors and windows, roofing, and skylights. These qualify for a 30 percent credit on the cost of the item (NOT installation) up to a maximum credit of $1500.

Happily, certain big-ticket items have no maximum credit cap. The credit is simply 30 percent of the cost of the item. These items include furnaces, air conditioning units, tankless water heaters, heat pumps, and geothermal systems.

Don’t forget to check your state and local area for additional incentives.

For more info on the federal tax credit, check out this Web site: EnergyStar.gov and NAHB.org/efficiencytaxcredit.

It’s countdown to tax time, and if you’re an Indianapolis homeowner still working on that fun project, here are some mortgage tax tips to keep in mind.

Possible itemized mortgage deductions for homeowners include:

Mortgage interest. One way in which home ownership pays off is that in most cases, all mortgage interest can be deducted from U.S. Federal taxes. To take advantage of this deduction you need to file Form 1040 and itemize your deductions on Schedule A. There are some limitations and complicated-sounding qualifiers, but in general, if you are making mortgage payments on a home you own, you qualify. To be sure, visit http://www.irs.gov/publications/p936/ar02.html.

Points paid at closing or in refinancing. It’s a deduction many homeowners overlook, which is a shame since each point is equal to 1 percent of the loan amount. Lenders charge points as a way to make a profit, and borrowers are willing to pay points in exchange for lower mortgage rates. Not sure whether or not you paid points? Check the 1098 statement you received from your lender when you purchased or refinanced your home. Loan points are fully deductible if they meet certain requirements.

Mortgage insurance premiums. Take advantage of this one while you can! This temporary tax break is set to expire December 31, 2010. To qualify, the insurance policy must be for a loan used to buy, build or improve your home. Home equity loans don’t count. Mortgage insurance premiums paid during the year are reported on Form 1098 which is sent out by the lender.

Property tax. As an Indianapolis homeowner, you pay property taxes which are used to provide public services. In most cases, those taxes are deductible as long as they are charged to all properties in your jurisdiction and are based on the assessed value of your home. Indiana also offers a number of additional property tax deductions including a mortgage deduction, homestead deduction, disabled veterans deduction and an over-65 deduction. See all Indiana property tax deductions.

Energy efficiency credits. Some home improvement projects that meet Federal energy efficiency guidelines are tax deductible. Windows, doors, roofs, and heating and air conditioning units are all possible qualifiers. See IRS Form 5695 for qualifying projects.

Homebuyer Tax Credit. Created to spark the floundering housing market, this incentive gives an $8000 tax credit to first time homebuyers with an income of not more than $125,000 for singles or $225,000 for married couples filing jointly. A $6500 credit is available to married homeowners filing jointly who have used the home they have sold or are selling as their primary residence for the past 5 out of 8 years consecutively. You must have closed on your home or be under contract by April 30, 2010 to claim this credit. Use IRS form5405 to find out if you qualify.

For official information on all mortgage tax deductions, vist the IRS Web site.

Indianapolis real estate

Pretend, for a moment, that you live in the Indianapolis Indiana area and aren’t a men’s college basketball fan, a Butler Bulldog fan, or – even better – both! What in the world will you do with yourself this weekend? Out of sympathy, I’ve done the homework for you and (good news!) you should be able to manage some fun after all. Since the temperature is rumored to be heading toward the upper 70s over the weekend, I’ve limited the Fun Things To Do Other Than the Final Four list to outdoor activities. After all, if you wanted to stay inside you could just watch basketball!

Wing it! Butterflies are back! Now through September 7, the Hilbert Conservatory at the Indianapolis Zoo’s White River Gardens is filled with the beautiful winged creatures which arrive at the gardens in the form of pupae and hatch throughout the summer. By the end of the garden’s most popular show, there will be more than 1,000 butterflies flitting throughout the conservatory! Both native and exotic species are part of the display, as are colorful flowers and plants that attract butterflies. Stand very still and a zebra longwing just might land on your outstretched finger! For more information, visit the Indianapolis Zoo Web site, www.indyzoo.com.

Take a ride! Trail ride season is open at the Fort Harrison saddle barn. Guided tours of either 1.5 or 2.5 miles take riders through scenic Fort Harrison State Park, former site of a World War II prisoner of war camp and now a 1700-acre park with walking and riding trails, picnic areas and fishing holes. Expect to see a variety of woodland flowers in bloom, and be sure to listen for the telltale sounds of the pileated woodpecker! For information, call 317-541-1866 or visit www.hoosiertrailrides.com.

Take flight! The 1859 Balloon Voyage experience is up and running for the season at Conner Prairie in Fishers. Flying 350 feet in the air in the basket of a hot air balloon, passengers will enjoy amazing views of the Indianapolis skyline, the White River, Noblesville, and other area landmarks. The balloon basket holds up to 20 people, so bring a friend! www.connerprairie.org

Rock out! You don’t have to like college hoops to participate in some of the fun events surrounding the NCAA Final Four tournament. The Big Dance is a FREE!!! 3-day concert series April 2-4 held at White River State Park in the conjunction with the tournament. Daughtry, the Goo Goo Dolls, Stone Temple Pilots, Darius Rucker and LL Cool J will perform. Visit www.NCAA.com/finalfour for performance times.

Get happy! Seeking some sophisticated fun as a prelude to the weekend? Try Happy Hour at the new Nourish Café at the Indianapolis Museum of Art. From 5-9 pm, patrons can enjoy drinks, yummy treats made primarily with local ingredients, and the opportunity to tour galleries or just sit and chat. Visit www.imamuseum.org for more information.

About Indianapolis Indiana