A: The Internet is a great source of information about everything and housing is no exception! You can learn what homes are available and get an idea of how much home you can get for your money. However, using the Internet as your only source of browsing is not a good idea because the Metropolitan Indianapolis Board Of Realtors will not allow real-time data on any public website – even their own. Also, many internet listings are incomplete and typically out of date.
A Realtor can show you things the Internet never will such as: Is the property involved in litigation or foreclosure proceedings? Are there equity or crime issues in the area? How is the school district performing? What price is reasonable for a home in the neighborhood?
Surfing the net to look for homes is great but you will need an agent to help you decide which properties are a good fit for you. And, since using a realtor to represent you in the purchase of your home if FREE, why wouldn't you? If you see a home on the Internet and want more information, just call or e-mail Nicole Spears for the WHOLE scoop! And, don't forget, if I represent you when you purchase your next home, my closing gift to you could be a check of up to $1,000 at closing!
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A: Notlong ago, all real estate agents represented the seller in a real estate transaction and "let the buyer beware" was the motto. Today most savvy buyers want a good agent to represent them when making a large investment and a home purchase is no exception! A buyer's agent represents the buyer and can show them any properties listed by any other broker's company, for sale by owner homes, builder models and spec homes and, sometimes, properties not even on the market yet!
A buyer's agent can offer professional real estate advice on selecting a property, negotiating price and terms and how to maintain and gain equity to get the most when you choose to sell. Keep in mind, real estate agents are professional experts in REAL ESTATE not in inspections, law, taxes or finances. We can make recommendations and speak from experience but, it is important that you consultant professionals in these areas if you need help before making decisions. Best of all, since sellers typically pay the buyers agents' commission, our services are FREE to buyers!
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A: When you close escrow ("closing"), the County Tax Assessor's Office will be sent the prorated amount of taxes specified by the purchase agreement and collected by the Title Company at closing. You will then be responsible for the next upcoming installment (the upcoming May or November). You may arrange for your taxes to be paid out of your escrow account held by your mortgage company. Your annual property tax amount will be based on many factors including your township and school district, the tax rate and the assessed value of your home. Taxes are billed and due semiannually in May and November.
If you will live in the home, you will probably qualify for a Homestead Credit on your property tax bill. If you have a mortgage on the home, you will likely qualify to receive a Mortgage Exemption. These are popular exemptions for taxes and can save you as much as $1,000/year or more! Approximately 6 weeks after closing (after the deed has been recorded) it is important to visit your assessor to file these exemptions. Other exemptions may be available for those in the military or over 65. Consult a tax specialist or the assessor for more information. A real estate agent or the assessor's office can tell you what the current taxes are on a home and whether or not any exemptions are currently on file.
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A: In Indiana, Title Companies work with both the buyer and seller to make sure the purchase agreement is excuted properly, that the seller has the legal right to sell the home, that the home has no liens or encumbrances, the proper funds are collected and disbursed to the correct parties (including but not limited to: the buyer, seller, real estate agents, county treasurer, inspectors, insurance companies, contractor/tradesmen, appraisers, lien holders/banks) and ensures all elements of the closing are excuted in accordance with local and state laws.
Why do you need to use a Title Company? Unfortunately, it's almost impossible and a very tedious task to make sure a title is clear of hidden defects. If the title is not clear you could find yourself in a tug of war over a property. Hidden defects include mistakes in interpretation of wills or other legal documents, someone impersonating the real owner, forgery, missing heirs, falsified records, and confusion caused by two similar names and aliases (i.e. Jr. and Sr.).
Because only the title and not the land itself is purchased, a homeowner risks losing their home unless they possess a clear title. Title insurance issued by a title company guarantees the title is as it is reported to be. If hidden defects are discovered at any time that challenges an owner's rights, the title company (attorney) will defend the title, even in court if necessary. If the case is lost, the title company compensates for the owner's losses up to the full value of the policy. Since it would be difficult for you to be certain their are no defects to the title of a new home, we recommend all of our clients use a title company to transfer title of their new home so that they will receive title insurance on the property.
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A: When submitting a purchase offer, unless you're paying cash, you need to provide evidence to the seller that you will qualify for the loan for the home. Then the seller will know that your offer is serious and you would be able to complete the sale.
A Prequalification means you've spoken with a lender and, based ONLY on the information you told the lender (and sometimes credit score), they believe you will qualify for a loan. You can see why this is not as comforting to the seller.
A Preapproval means you are serious about buying and have taken steps toward getting financed. You can get preapproved for a loan by submitting a loan application and having the lender verify your credit scores, employment and income. Once you get a preapproval, all we will need to close the loan is an appraisal on the home you choose to buy. Preapprovals often give you more negotiating clout, and you can see why it would be beneficial to get.
To get preapproved or prequalified, visit my Loan Quote page or contact me and I would be happy to refer a you to few good Central Indiana lenders.
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A: In general, if you will be in Central Indiana for three years or longer, buy. If you will be here less than two years or or unsure of how long you will be here, rent. The financial tradeoff between buying and renting is complicated and, as with any financial investment, it may be wise to consult your CPA or tax professional on what is best for you. Issues to discuss may include: mortgage interest tax deduction benefits, value appreciation/equity, upkeep and costs of sale.
If you're not familiar with Central Indiana and don't mind moving twice, it may be wise to rent 3-6 months while you explore the Indianapolis and it's suburbs to see what area is best for you. However, if your plan to buy a home, I urge you not to sign any lease longer than six months. It may also be beneficial to make sure you can go month-to-month if your lease expires. This will take off the pressure to buy NOW and, when you find the home that you love, you will not have to pay a fine to break a lease or, worse, have rent and a mortgage payment at once.
If you have questions, you can Contact Me and I can refer you to a rental property managers in Central Indiana. I do not personally handle any rentals. You can also visit Renting vs Owning and Is Home Ownership Right for Me?
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A: In general, whether you are a buyer or seller, you closing costs will be around one percent of the sales price. For example, a $150,000 home would cost about $1,500 in closing costs. Your closing costs may be slightly less or more than one percent, depending on the home needs and contract negotiations but this is a good figure to keep in mind. Buyers, please remember that closing costs are in addition to any loan costs you may be responsible for. Your lender should be able to provide you a GOOD FAITH ESTIMATE of the proposed costs of your loan. Be sure to ask for and review one (I am happy to offer any advice) BEFORE submitting an offer on a home so that you have an idea of your complete purchase costs before negotiations. For more information, visit our Loan Quote page to get started on your Pre-Qualification!
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Don’t call anyone else to see homes, I can show you every home for sale in the area! Plus, my very special closing gift to you is a check for up to $1,000.00!
Nicole Spears
REALTOR
msWoods Real Estate
Direct/Fax: 497-4001
Looking to start a Real Estate Career? Ask me about our free leads program!
The best compliment I can receive is a referral to a friend! Please don't keep me a secret!
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