2010-2011 Costs Vs. Value: Home & Design: REALTOR Magazine

2010-2011 Costs Vs. Value: Home & Design: REALTOR Magazine

Indianapolis Real Estate

The Size of Home That Buyers Say They Most Want

The “small home” craze continues as buyers say they find less square footage more desirable. Nearly half of Americans say their ideal home size would range from 1,000-1,999 square feet, according to a recent survey by Relocation.com of nearly 1,500 home owners and buyers.

Just five years ago, the National Association of Home Builders reported the average home size to be 2,400 square feet — that’s 400 square feet larger than what buyers say they now want.

So what’s to happen to all the McMansions out there from just a few years ago when big homes were in their heyday?

Naturally, you would assume that the cost of homeownership has gotten buyers thinking smaller. But according to this survey, when asked whether cost was a main deciding factor in choosing a home, most respondents said it wasn’t very important. In fact, only 29 percent of survey respondents said that living costs was the most important reason when considering a move.

So why have buyers gotten so practical with their home buying decisions?
“As home owners rethink how much space they need, I think we’ll continue to see more innovative approaches to living well and sustainably within a smaller footprint,” said Sharon Asher, Relocation.com chairperson and founder, in a public statement about the survey results.

Other notable findings among the survey results:

• Sububia reigns: The Relocation.com survey also found that 54 percent of Americans continue to find a home in the suburbs the most desirable. They want to live near the city but prefer the peace and quiet of the suburbs. Urban and rural neighborhoods were only preferred by 24 percent and 22 percent, respectively.
• Main priorities in selecting a home: Neighborhood safety was an important factor in choosing a home. Buyers judged neighborhood safety by the upkeep of homes and front lawns in the neighborhood, word of mouth reputation, and local crime reports and statistics. Besides neighborhood safety, respondents also ranked proximity to decent shopping and having a large backyard as important factors in selecting a home.
• Most sought-after features: Survey respondents said the most desirable features of a new residence are central air conditioning (87 percent); custom, walk-in closets (50 percent); and “top of the line” dishwasher and/or refrigerator (43 percent).
• Least sought-after features: The least desirable home features were custom window coverings, followed by an in-ground pool or spa.

Indianapolis Real Estate

No Foreclosures Over the Holidays

Fannie Mae and Freddie Mac are freezing all foreclosure evictions on the mortgage loans they own or back from Dec. 20 through Jan. 3.

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," says Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac.

Most of the large banks, including Bank of America, J.P. Morgan Chase, and Wells Fargo, already observe a moratorium through the New Year, unless the foreclosure involves an investor who chooses not to observe the holiday policy.

Indianapolis Real Estate

Carmel Proposes New Sign Regulations

Recently, Carmel City Councilor Joe Griffiths introduced a proposal to amend the sign regulations in Carmel that would allow open house directional signs to be placed in the public right-of-way during the weekend. Many may think that placing signs in the right-of-way on the weekend is already allowed because they often see signs there. However, any sign placed anywhere other than the actual property listed for sale/rent/lease is currently prohibited. In fact, these restrictions are common across most of the MIBOR area with a very few exceptions.

On Monday December 13, there will be a committee hearing of the Carmel City Council at 5:30 pm at City Hall. MIBOR will be offering input on the proposal based on feedback from REALTORS® and REALTORS® are strongly encouraged to attend in order to show their support. While there are some minor changes that will be suggested to the current proposal, this ordinance is a very positive step for REALTORS® and to people buying and/or selling their home.

Based on feedback received to this point, suggestions will be offered to change the allowable sign size to six square feet and time to 5 pm Friday to 6 pm Sunday.

Indianapolis Real Estate

REALTOR® Magazine-Daily News-Real Estate Professionals Reiterate MID Concerns

REALTOR® Magazine-Daily News-Real Estate Professionals Reiterate MID Concerns

Indianapolis Real Estate

Small Business Jobs Act enacts new provision: 1099s will be required for 2011 payments

The recently enacted Small Business Jobs Act includes a provision related to reporting requirements of rental property expense payments. After Dec. 31, 2010, the new law requires those who receive rental income from real property to file 1099s with the IRS for service providers such as plumbers, painters and accountants, who receive more than $600 in payments over the course of the year. Even though the 1099 forms will not need to be issued until early in 2012, it will be necessary to begin keeping track of payment information on Jan. 1, 2011, and to collect completed w-9 forms from service providers to obtain their names, addresses and taxpayer identification numbers. Exceptions are provided for individuals renting their principal residences (including active members of the military), taxpayers whose rental income doesn't exceed an IRS-determined minimal amount, and those for whom the reporting requirement would create a hardship (under IRS regulations).

Included in the provision is an increase in penalties for failure to file 1099s with the IRS. For further information, contact your tax accountant.

Indianapolis Real Estate

Money Saving Heating and Cooling Tips

According to the U.S. Department of Energy, heating and cooling your home uses more energy and drains more energy dollars than any other system in your home. Typically, 43% of your utility bill goes for heating and cooling. With the high temperatures we experienced this past summer and the cold temperatures that are sure to follow this winter, it's important to get the most out of your heating and cooling systems. You can save on your energy bills by properly maintaining and upgrading your equipment, but that alone is not as effective as combining it with a whole-house approach.

Tips for Heating and Cooling

Use a programmable thermostat as you only need your air conditioner or furnace to run when you are home. Set timers to come on no more than 30 minutes before you arrive at home. Try to keep your summer thermostat at 78 degrees or higher and your winter at 68 degrees or lower to maximize your energy savings. Avoid placing lamps and televisions close to your thermostat as the heat from these appliances may cause your air conditioner to run longer.

Use draperies or window shades to capture or repel heat. In the winter, use heavy drapes to block drafts. Open them when the sun is shining to draw in the solar heat and close them when it is dark and cloudy outside to trap heat in the room. Keep your window coverings closed during the summer to offset the increase in heat from the sunlight pouring in. However, if the outside air is cooler than the inside and humidity is low, by all means, open the windows and let nature be your air conditioning!

Insulate your doors and windows against heat and cold. Seal any drafts around doors and windows with weather-stripping. If air is still flowing, cover the windows with plastic in the winter. Proper insulating is just as important in the summer to keep the heat out.

Plant trees and shrubs to shade your home. Deciduous trees planted on the south and west sides will keep your house cool in the summer and allow the sunlight to warm the house during the winter. For example, just three trees, properly placed around a house, can save between $100 and $250 annually in cooling and heating costs.

Maintenance : There are many safety items and operational devices in your home comfort system. According to the E.P.A. you should have your heating system checked and serviced annually to keep it safe and operating as efficient as possible. In most cases the cost of this service will be saved in lower operating expenses, less likelihood of equipment malfunction, not to mention that you will know you are protecting your family.

Air Filters : Your home furnace filter needs to be changed on a regular basis. How often depends on variables such as type of filter, operating time of system, and occupancy of home. Your filters main objective is to protect your comfort system from harmful dirt and particles. With many type of filters you can receive the added advantage of helping resolve allergy and other health issues your family may have. As a rule less expensive 1" filters should be changed monthly and other filters can last from 90 days to 1 year.

Try out some of these handy tips for summer and winter and watch your energy bill fall and your comfort level rise!

Indianapolis Real Estate

Central Indiana Back on Top of Affordability

According According to the National Association of Homebuilders/Wells Fargo Housing Opportunity Index, Indianapolis retains the #1 spot as the most affordable major U.S. housing market again in the 3rd quarter of 2010. Findings were released Nov. 18.

Indianapolis Real Estate