Latest Indianapolis Real Estate Market Conditions

Stats were just released late this past week.  In the Indianapolis area, annual sales of homes have increased from this time last year from 26,000 to 27,000.  Also, overall prices have remained unchanged from this time last year.  On the surface that may not seem great, but considering the mortgage market and foreclosure issues, those numbers are phenomenal.  We are seeing houses selling very quickly now.  Some of that has to do with the time of year, but the mortgage market is starting to settle down and buyers are gaining some confidence.  Buyers are still looking for deals, but those “great” deals are going to start drying up sooner rather than later.  My appraisal business has jumped slightly and we have seen more activity on the realty side of the business.  Those pent up buyers I have been talking about are coming out to smell the roses.  The market still has some rebounding left to do, but Indy is already picking up some steam and is poised for a nice rebound.  Are you ready?

-B
- www.investorschoiceindy.com 

Posted by Clayton Posted in: Investors Choice, Indianapolis Real Estate Market, Investment Property Rehab, Mortgages & Lending, Indiana Real Estate, Real Estate No Comments » March 2008

What is that Investors Choice Indy company, anyway…???

I wanted to send out a quick thank you to everyone that visits this site.  Word is spreading quickly about what we do.  Bringing awareness to the community about our projects and idea is wonderful.  I continue to hear stories about title companies, mortgage companies, real estate agents, and other industry professionals talking about what we do.  Even though they may not contribute (although they really should to get more involved), their presence is helping get our name out to the public.  Thank you again to everyone for helping.  Your help will come back to help you in the way of having like minded people share experiences and knowledge.  I hope more of you “lurkers” start to write in to ask questions and give opinions about our topics.  Everyone would love to hear from you. 

-B
IC Indy Guru

Posted by Clayton Posted in: Investors Choice, Investment Property Rehab, Mortgages & Lending, Indiana Real Estate, Real Estate No Comments » March 2008

When to say when.. How much Investment Property Rehab is enough??

An important component in pricing and marketing a property will be in looking at the market and your competition (ie. listing and sale comparables).  Most of the homes that I am putting out as investment deals are in areas that having one bathroom is common.  I would agree that having a second bathroom in a three or four bedroom house would be ideal.  However, it is not an “expected” feature in these areas.  Also, the expense is almost always probititive.  Appraisers like myself use the term “incurable”, meaning that the cost to make an improvement (ie. bathroom) costs more than the value you would get of the improvement.  As an example, it might cost $5,000 to add a bathroom.  If the market will only allow for an increase of value at $2,500 due to that bathroom addition, then the improvement is considered to be incurable.  If you were to spend the same $5,000, however, and receive at least $5,000 of market value, then the improvement would be considered curable.  In most cases, room additions will be incurable.  Having said that, I just went out to a property this past weekend with 4 bedrooms and only one bathroom.  The house has a perfect area for a second full bathroom.  The cost will be nominal because it will only involve a slight conversion of space.  In that situation, adding the bathroom is going to become part of the rehab plan.  Not every property will see that type of renovation though.  In fact, most of them won’t due to cost and more importantly the market expectations in those particular areas.

Join in the conversation at the Investors Choice Indy Forum

 Til Next Time…

Posted by Clayton Posted in: Investment Property Rehab No Comments » January 2008