Why You Need a Pre-approval

As a first time home buyer you are inevitably excited to run out the door and start looking at possible future homes.  However, you unfortunatley are skipping a critical step: pre-approval.  Many buyers don't understand the reasoning why it is so important to be pre-approved by a qualified lender before ever walking out the door to start looking at new homes.  Here are a few reasons:

• You need to know what you can afford. You may have a good idea of how much you can afford, but how do you know that the bank will actually lend you that much money? Many people assume they will be able to get a loan because the have been pre-approved in the past, but times have changed.
• Get your financial picture in focus as soon as possible. Since it is an important component, be aware of your credit situation. You may be unaware of certain negative items that may be on your credit report and can impact you ability to obtain a loan.
• Talking to a lender will give you an idea of different loan options that are available to you. Conventional, FHA, Fixed, Adjustable, 203(K) rehab loan...  With the recent economic downturn there are a large amount of REO and short sales homes on the market that can be a great investment for a first time home buyer.  A lender can explain these financing options and will also give you a good idea about how much money you will need for a down payment and how much for closing costs.
• The seller will NOT take your offer seriously unless it is accompanied by a pre-approval letter. Many sellers will not even accept an offer without a pre-approval. The seller wants proof that you are able to afford their home. They do not want to waste their time and money waiting for a deal to close if it is likely that the buyer will not get financing.   You do not want to fall in love with a home and waste valuable time waiting to put an offer in on it because you did not do the upfront work first of getting pre-approved.
• Many licensed agents will not take you out to look at homes until you have a preapproval letter.  Agents do not want to waste their time or your time by running around town with a client who might not even be able to financially secure a loan and close a deal.

Today, many lenders have quick and easy website links that allow a client to complete preapproval process without ever leaving the home you can begin your new home search without delay.

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I Found the Perfect Home to Buy, But I Still Have a Lease...

Scenario: You have found the perfect new home, but are still in an apartment lease.  What do you do?
Helpful Tips:

• Ask for a copy of your lease agreement to review.  Knowing the terms of your lease will help in negotiating an early release.
• Look into a lease buyout option, most property management companies allow a resident to terminate their lease early with a buyout fee.
• Ask if you are allowed to sublet your apartment.  Many times apartments won't allow short-term leases so you may be able to find someone who just needs a three month lease or a similar term to takeover the lease for you.  You can even offer to pay a portion of the rent if the monthly rent might be higher than what the sublet is willing to pay. 
• Talk to the property manager see if they need your style of apartment to rent.  Offer to vacate early if they can re-rent it. 
• Stay in touch with the property manager.  Even if they tell you no at first most will be willing to help you out especially if you have been a good paying tenant.

Indianapolis Real Estate

Press Release - Keller Williams Realty Announces Numbers for 2010, Continued Growth During Real Estate Downturn

Press Release - Keller Williams Realty Announces Numbers for 2010, Continued Growth During Real Estate Downturn

AUSTIN, TEXAS (February 21, 2011)–Keller Williams Realty reported today at its national convention that it ended 2010 with 79,315 associates, 701 market centers (offices), and associate profit share up 7.2 percent, with its agents receiving $34.6 million dollars back. Since the inception of the profit sharing program, the company has given back over $304 million in earnings to its agents. Additionally, CEO Mark Willis shared in his annual State of the Company address to more than 8,000 convention attendees that, since the real estate market’s sharp downturn in 2005, the company has grown 30 percent in agents, 40 percent in market centers, 21 percent in closed units and 11 percent in closed GCI.

“Keller Williams agents have outpaced the market in every way, through productivity and profit share. As a company, we are better off now than we were before the shift–and we have our associates to thank for that," said Willis.

The growth of the company can be attributed to the growth of its agents. Agent productivity continued to rise with units closed up 6 percent from December 2009 to 2010, while comparably, the NAR membership as a whole went down in closed units 4.8 percent. Overall the company’s associates saw productivity year on year percentage increases across the board in listings taken (up 13 percent), contracts closed volume (up 9 percent) and contracts closed units (6 percent).

“These numbers are the most important to us because they are proof that our agents are succeeding, making more money and growing their businesses. They are truly breaking through," Willis added.

Willis also did the honors of “turning on" the industry’s firstcomplete lead-to-close business solution, eEdge, during his address. This unique tool is now available to every Keller Williams associate at a fraction of the cost they would normally pay with functionality to build their leads, database and sales. Additionally, with the company-wide paperless transaction system, consumers can expect a faster, more seamless closing process.

“We want to thank our associates and their unwavering commitment to the growth of their businesses and leading the way in the industry in technology," said Mary Tennant, president and COO of Keller Williams Realty. “Keller Williams Realty wouldn’t be forging ahead with such an important product like eEdge without the support of our agents and their vote!"

In addition to reporting positive growth and technological advancement, the company received many accolades in 2010 including:

· Entrepreneur magazine, No. 1 ranked real estate franchise on the 31^st Annual Franchise 500 list

· J.D. Power and Associates, highest in overall satisfaction ratings from home buyers among the largest full-service real estate firms for the third year in a row

· Inman News, Co-Founder and Chairman of the Board Gary Keller named one of the 100 Most Influential Leaders in Real Estate

· Training Magazine, highest ranking real estate franchise on the annual Training Top 125, #47 Overall

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About Keller Williams Realty, Inc.:

Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 690 offices and almost 80,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).

Indianapolis Real Estate

Indianapolis - Most Affordable Housing Market

A release last Thursday from the National Association of Home Builders/Wells Fargo Housing Opportunity Index named the Indianapolis region the most affordable major housing market in the country, again. Over the last five years, Indianapolis has only not held the number one ranking one time. Of all homes sold in Indianapolis in the last quarter of 2010, 93.5 percent were affordable to households earning the area's median family income of $68,700.
Indianapolis Real Estate

Seal Air Leaks Around Windows and Doors

Seal air leaks around windows and doors to prevent wasting home heating and cooling energy that costs you money.

Check for air leaks
With windows and doors closed, hold a lit stick of incense near window and door frames where drafts might sneak in. Watch for smoke movement. Note what sources need caulk, sealant, and weather-stripping.

Seal air leaks around windows

If you have old windows, caulking and adding new weatherstripping goes a long way toward tightening them up.

Bronze weatherstripping ($12 for 17 feet) lasts for decades but is time-consuming to install.  
Self-stick plastic types are easy to put on but don’t last very long.
Adhesive-backed EPDM rubber ($8 for 10 feet) is a good compromise, rated to last at least 10 years.

Nifty gadgets called pulley seals ($9 a pair) block air from streaming though the holes where cords disappear into the frames.

Seal air leaks around doors
Check for air leaks, and replace old door weatherstripping with new.

Foam-type tape has an adhesive backing; it’s inexpensive and easy to install. If it comes loose, reinforce it with staples.
Felt is either adhesive-backed or comes with flexible metal reinforcement. it must be tacked or glued into place. It’s cheap and easy to install, but it has low durability.
Tubular rubber, vinyl, and silicone weatherstripping is relatively expensive and tricky to install, but it provides an excellent seal. Some types come with a flange designed to fit into pre-cut grooves in the jambs of newer doors; check your existing weatherstripping and replace with a similar style.
Check exterior trim for any gaps between the trim and your door frames, and the trim and your siding. Caulk gaps with an exterior latex caulk ($5 for a 10-ounce tube).

Seal door bottoms
If a draft comes in at the bottom, check the condition of the threshold gasket. Replace worn gaskets. If you can see daylight under the door, you may need to install a new threshold with a taller gasket ($25 for a 36-inch door). Or, install a weather-resistant door sweep designed for exterior doors ($9). Door sweeps attach directly to the door and are easy to install.

Indianapolis Real Estate

Putting on a Pretty Face

Exterior replacement projects continue to be the most costeffective home improvement projects, according to the 2010-11Remodeling Cost vs. Value Report. This year nine out of the 10 projects that return the most
bang for the buck are improvements to a home’s exterior.

A steel entry door took the top spot with an estimated 102.1 percent of cost recouped upon resale. That was the only project in this year’s report expected to return more than the cost. A new addition to the report – the midrange garage door replacement – is expected to recoup 83.9 percent of its cost. Both projects are relatively small investments, costing around $1,200 each, on average. 

The report also found that replacement projects usually outperform remodel and addition projects in resale value due to their inexpensiveness and positive impact on curb appeal.
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NAR Sales Spike

The up and down pace of sales that characterized the second half of 2010 appears to be ending on a high note.

The National Association of REALTORS® reports that existing home sales during November rose 5.6 percent over the previous month.

Even though November 2010 sales are still 27.9 percent below November 2009 – the initial deadline for the first-time homebuyer tax credit – NAR chief economist, Lawrence Yun, notes, “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable.”

He adds, “The relationship recently between mortgage interest rates, home prices and family income has been the most favorable on record for buying a home since we started measuring in 1970.Therefore, the market is recovering and we should trend up to a healthy, sustainable level in 2011.”

Indianapolis Real Estate