Yesterday was the Realtor Breakfast at Pike High School. I had attended several over the past years. It is a time when Realtors can become familiar with what Pike schools have to offer, which by the way, is amazing.
The Red Zone Cafe
This year it was held in the Red Zone Café which is a small restaurant run by students in the high school. The Café is a student learning program that provides a Culinary & Hospitality experience.
Superintendent Dr. Flora J. Reichanadter and high school principle Troy Inman spoke about all the things going on in the school system
I am somewhat familiar with Pike Schools because my son attended and graduated there in 1999. What I am always intrigued about is their STEM programs.
From a flyer that was passed out to Realtors;
Pike students have the opportunity to start their journey toward successful careers through a state-of-the-art Pike Career & STEM Center located at Pike High School. Programs that are offered include Cosmetology & Barbering, Culinary Arts, Criminal Justice, Emergency Medical Services, Heating & Air Conditioning (HVAC) and Health Sciences. Students will have the opportunity to receive college dual credit and acquire skills from experienced faculty. Students may also earn up to three high school credits per semester in selected courses that will apply towards their high school diploma. Work-based experiences apply to most programs.
After breakfast and updates from Superintendent Dr. Flora and Principle Inman, we were taken on a tour of the building.
What impressed me the most was the hands-on experience that the students get in STEM classrooms. I was fascinated by the HVAC classroom where students were all learning how these systems work and how to repair them. The classroom had actual furnaces and air conditioning condensers lined up against the back wall that were used to instruct the students.
The computer classes allowed the students to learn how to write computer programs and apps to go along with them. In one classroom we saw students working on the different parts of computers. We were told that when in school computers need repair, they can be brought to the classroom for repair. They will also repair computers from the community if brought in.
Want a haircut? You can get one at a very reasonable price from the Cosmetology & Barbering class.
We also got to see the CNA (Certified Nursing Assistant) class, the Emergency Medical Services class, the media center, and the swimming pool.
When the tour groups interrupted the classes, the students were very disciplined and well behaved.
It seems that schools today must entertain students and train them for future endeavors.
Today’s high school classes are nothing like what my high school was like. Students can get vocational training and go right into a good-paying job.
Links to Website and Materials
Pike Township Schools Website
#PikeProud Newsletter – Week of 9-23-19
Pike Career and Stem Center_Program
2019 Profile of Excellence – MSD Pike Township
Career Center Advisory Board
Contacts and IDOE Data
Cosmetology-Barbering Service Menu
The Red Zone Cafe Menu 2019
1. Give your entry a new look. Did you know that houses with black front doors can sell for more money?
2. A well-groomed yard shows buyers that the home was taken care of.
3. Make sure all windows have been cleaned.
4. Clean out your garage. A clean garage will give the impression of more space.
5. Depending on the season, plant flowers.
6. Remove any lawn ornament that you will want to bring with you to your new home.
7. Greet buyers at the front door with a new welcome mat.
8. Make sure the street numbers on the house are visible. Paint or replace it if in bad shape.
9. Make sure all exterior lights are in working order
10. Power wash any outdoor surfaces to give them a ‘like new’ feel.
• 10 Tips to Make Your House Feel Like Home to Buyers
1. Get rid of distractions. A clean home will allow buyers to picture themselves in the space.
2. Make sure every room has a purpose. Giving it an identity will help buyers.
3. Open all curtains and let the light in. Bright rooms feel warm and inviting. Dark rooms feel small and gloomy.
4. Make sure no oblivious repairs are needed. If needed repairs are found, this gives buyers a reason to discount the offered price of the house.
5. Get rid of the clutter. Clean out closets, bathrooms, pantries and kitchen counters and drawers. This gives the impression of more space.
6. The top two things you can do to improve the salability of your house are new carpet and fresh paint. This will help sell your house faster and for more money.
7. Organize the kitchen. It is best to have nothing on the counters than to have them full of small appliances. Clean all countertops.
8. Make sure you empty all trash containers and hide any dirty laundry.
9. Make sure all doors and windows open and close smoothly. Fix any squeaks with lubricant.
10. Make sure all lights and switches work.
The top goal when listing your house for sale is getting the best possible price. These small projects above can help you meet that goal.
1. Concentrate on curb appeal – When a potential buyer drives by your house, you want it to be remembered. Make sure the lawn is cut, bushes are trimmed, and weeds are pulled, plant flowers if possible, and make your entryway warm and welcoming.
2. Be extremely flexible with showings – It’s not unusual in this market to have requests for multiple showings (and offers) in rapid succession. Once a property hits the market, people want to see it quickly. Flexibility and trusting your agent to have your best interests at heart are vital.
3. WOW, factor – Fresh flowers, gleaming windows, clean scents, soft jazz music in the background and well-staged touches are important to creating an enticing showcase of a home.
4. Inside temperature – Make sure during the summer that the air is on and circulating well. During the winter months, make sure the buyers feel the heat as they enter the house. A comfortable temperature will keep potential buyers viewing the home longer.
5. Price it right – While it is a seller’s market, overpricing right out of the chute will cause your home to sit on the market. Price it right and you could have the opposite reaction: multiple offers and bidding wars.
There are many ways to get your home sold today for top dollar and few if any, headaches. That’s were relying on a trusted professional comes in handy. I can make sure it is priced and photographed properly to make it stand out from the competition.
A comparable market analysis is sort of like a jigsaw puzzle. Each piece represents a different market element that needs to be considered in determining the fair market value of a property. Done properly, all the pieces of the puzzle should give you a picture of a reasonable, quantifiable fair market value.
Typically, I go through the following steps;
1. Find out everything I can about the property. At a minimum;
• Location (street, neighborhood, municipality, county)
• Total square footage
• Number of bedrooms and baths
• Basement yes/no
• Year built
• Recent renovations
• Interior finishes of note
• Any extraordinary features (swimming pool, pole barn, deck, etc.)
Retrieve the Property tax record for the property.
This tells me who the owner (decision maker) is, what the assessed value is (value the property taxes are based on), what the property taxes are (higher property taxes could lower the appeal of the house), square footage, if there is a recorded mortgage and for how much, and how long the owner has owned it.
Gather previous sale information for the property on MIBOR’s Broker Listing Cooperative.
This can be incredibly helpful. It shows what information the previous Realtor collected in order to list the property. This can be the room sizes, updates to property, amenities, how many days it was on the market and what it sold for. Days on the market are important because it tells me if the property was priced right. I can then compare it to the average days on market for all the other houses in the neighborhood that were sold around that time. If it sold extremely quickly, that might tell me that it was priced to low.
The price it was listed and sold for is also relevant. It gives me a starting point based on market conditions. If the property sold three years ago, and the general price of homes in the neighborhood has risen 5% in the past three years, the previously sold price and the general movement of the market can be combined and become a huge clue as to what the current market value is. Most helpful are pictures of the property. Seeing interior pictures of the house from past sales helps me see the design of the house, which helps me determine how to market the house in the future if I list it.
Search the Broker Listing Cooperative for houses that were sold in the past 6 months, in the neighborhood, like the subject property.
I am looking for apples to apples comparison. I look for the type of house (one story or two), bedrooms and baths and square footage to begin with. Normally houses that are built in the same neighborhood are built within a couple of years of each other so the age of the house is not very important. Looking for like conditions is important. You can usually tell by the pictures. Same with the updates. If I can’t find any comparables in the neighborhood, then I would have to extend my search. I could also go back 12 months but the market might be different at that time. If I extend my search outside the neighborhood, age of house becomes important. If my subject property was built in 1995, then I want to look for comparables in the 1990 to 2000 range.
Going outside that range become problematic. Builders tend to follow what the market wants. What the market wanted 10 years ago is not the same today. Also, styles change. In the end, I want at least 3 comparables. If I can’t find them, then I have to use what is the closest and make adjustments in price to the comparables. Lastly, I look at the following;
• What is actively on the market in the neighborhood, how it is priced and how long has it been for sale.
• Same goes for pending sales in the neighborhood.
What is happening in and around the neighborhood?
This can affect the neighbor as a whole. Are low rent apartments going in next to the neighborhood? Is there going to be a strip center one block away? Is there going to be highway construction going on during the listing period? How far away are the bus stops? Does the neighborhood have a good reputation? Does the homeowners association have an active Board of Directors? All of the above can affect the sale one way or another.
Lastly, key the address into Google and see what you get.
You may be surprised.
There are two different types of comparable market analysis. One is where I do not tour the interior of the house. I only come up with a value based on my research. Generally, I would give a high/low range value. If I can tour the house, I can give a precise value.
A COMPARABLE MARKET ANALYSIS IS NOT AN APPRAISAL. An appraisal has to be done by a licensed appraiser. There are very few Realtors that have an appraisal license. Realtors do a comparable market analysis for free. Appraisers charge close to $500 and usually work for banks but can work for a seller. Can a Realtor and an appraiser come up with different values? Yes. Two Realtors or two appraisers can come up with different values. It is not a science. It is an art form.
Want to know what your house is worth on the market today? Contact me…
I was curious as to how much home prices were increasing between last year and this year, year to date. Since average prices can be thrown off by heavy or lightweight pricing, I used the median pricing approach.
The median price is the middle point for real estate prices. It is not the same as the average price. The median price is the price in the very middle of a data set, with exactly half of the houses priced for less and half-priced for more.
The median price for all the houses sold in Pike last year was $145,000. This year, year to date is $160,000. That is a 10.34 percent increase.
What happens when you break it down into 4 different price tiers? The four price tiers are based on the median sale price and are as follows: homes priced at 75% or less of the median (low price), homes priced between 75% and 100% of the median (low-to-middle price), homes priced between 100% and 125% of the median (middle-to-moderate price) and homes priced greater than 125% of the median (high Price). The number of houses sold is in parentheses.
|Low – $0 to $108,750(288)||Low – $0 to $120,000(190)|
|Low to Middle – $108,751 to $145,000(314)||Low to Middle – $120,001 to $160,000(241)|
|Middle to Moderate – $145,001 to $181,250(268)||Middle to Moderate – $160,001 to $200,000(173)|
|High Price – $181,251+(317)||High Price – $200,001+(189)|
Now if I take the median price of each tier and compare 2018 to 2019YTD I get the following;
Interesting, I would have thought that the biggest increases would have been in the middle tiers. Turns out that the low tier and high tier had the biggest increases.
1. Focus on curb appeal. Keep your lawn in tip-top shape by watering and mowing regularly. Trim the bushes, plant flowers that are summer-heat tolerant, get rid of the weeds, and make your entryway warm and welcoming.
2. Have flexible showing hours. It’s not unusual in this market to have requests for multiple showings (and offers) in rapid succession. Once a property hits the market, people want to see it quickly. Flexibility and trusting your agent to have your best interests at heart are vital.
3. Deliver pizazz. Fresh flowers, gleaming windows, clean scents, soft jazz music in the background and well-staged touches are important to creating an enticing showcase of a home.
4. Keep it cool in the summer and warm in the winter. No one wants to walk into a house they are considering buying and be uncomfortable. The more comfortable the buyer is, the more likely they will consider the home longer.
5. Price it right. While it is a seller’s market, overpricing right out of the chute will cause your home to sit on the market. Price it right, and you could have the opposite reaction: multiple offers and bidding wars.
There are many ways to get your home sold today for top dollar and few if any, headaches. That’s where relying on a trusted professional comes in handy. I can make sure it is staged, priced and photographed properly to make it stand out from the competition.
Want to learn more about getting the most from your home investment? Call or text me today. I’m here to help.
It is an interesting question.
Last month the National Association of Homebuilders surveyed over 19,000 adults to gauge the public’s attitude on housing affordability in their housing markets. Their findings show that 80 percent of Americans households now believe the nation is suffering from a housing affordability crisis. 75 percent reported housing affordability was a problem at both the state and local level.
Locally here in Pike Township, we have seen average home prices in the past 5 years go up about 30 percent. In the past 10 years, average prices have risen about 48 percent. It seems housing affordability is outpacing wage growth.
If you take the average price of a Pike house today and divide it down, it goes like this;
If an FHA loan
$180,000 – Purchase price
$818.51 – Principle and interest
$ 37.50 – Insurance
$150.00 – Property taxes
$123.04 – Mortgage Insurance Premium
$1,129 – Total
(Disclosure – The above prices are estimates. There are many variables. Contact your local lender for more precise details)
According to RentCafe.com the average rental price in Pike Township is $861 per month. That is a $268 difference per month.
What is causing house prices to rise?
• No houses for sale. Twelve years ago there were over 1000 houses for sale in Pike Township. This morning there are only about 120. There are still buyers for houses and now they have to scramble to fight off other buyers for a house. We get into multiple offers where prices get bid higher than list price. If the buyers have to get a mortgage, and the house appraises, no problem.
• Sellers are not willing to put their houses on the market because they will have to buy a new one with a mortgage and they are looking for lower mortgage rates. If there were more houses on the market, prices would not rise so quickly.
• Over the past 10 years, distressed housing has been dropping. In 2009, there were 395 distressed home sales in Pike Township. Last year there were 31. Distressed housing lowers property values in communities. (My definition of distressed sales – foreclosures, short sales, bankruptcies, bank-owned, and VA owned foreclosed sales.)
• In the past 10 years, more house sales have been made with cash (about 15 percent). This is unusual. It seems that more owners are investing their money into their houses and holding them longer.
• The average homeowner now keeps their house about 10 years. It use to be 7 years.
• Builders are not building affordable housing. They say it is not profitable. Also, builders have to pay high fees to the city in order to build. Add in costly impact fees, outmoded land development regulations and inefficient zoning rules and house prices must rise to cover their costs.
More houses for sale would stabilize pricing. It would cut down on multiple offers which raise prices. Lower interest rates would also encourage sellers to sell and buy a new home if they can find one to their satisfaction.
A recession is predicted but I don’t think it will hurt housing prices as it did in 2008.
There are no easy answers here and a lot of variables.
Builders and developers are getting scare in Pike Township. 15 years ago there were plenty. We were at the peak of the housing market. A builder could build a starter home for around $125,000 and would sell out a community very quickly. Today builders say they can’t afford to build starter homes anymore. There is no profit in them. What they like are $300,000 homes.
In The Past
The last starter home community that went up in Pike Township was Bentwood Springs. A small community of 55 homes located near 71st and Highland Road. The land was owned by Pike Schools and sold to Arbor Homes. Arbor started building in 2016 and sold all homes by 2017. These traditional homes were priced between $150,000 and $200,000 depending on style and upgrades. There seemed to be a huge demand for this price point in new homes.
The last community that was built in Pike was Woods At Traders Point. A 77 home community located near 75th and Marsh Road. A developer bought the land which was an estate. He then sold it to Westport Homes. When Westport wanted zoning and presented to Pike Township Residents Association, they tried to sell it as an empty nester community. The houses were very modern and had a lot of nice features. They were priced between $300,000 and $500,000. At the time, 80 percent of the homes sold in Pike were under $175,000. Only 7 percent of the homes sold in Pike were at this communities price point. I believed it would take them 6 years to sell out. I was wrong. Started in 2015, it took about 2.5 years to sell out. It seems there was a demand.
Coming Attractions In Pike
Last year Davis Homes negotiated to buy Midwest Softball property located at 7511 New Augusta Road. It was dependent on if they could get proper zoning to build there 3 tier community. They proposed senior apartments, patio homes, and single-family home, each in there own areas of the property. The single-family homes were going to be on the east end of the property. The northwest property area would house the senior apartments and the southwest area would be the patio homes. The residents of Crooked Creek Heights West were very concerned that the new community would lower their property values. Brad Davis assured them that his new single-family homes would be at or higher market value than their present homes. Here are more details. Brad gave the impression that they would have started by now with their construction. Nothing has happened. Today I communicated with Jerrod Klein, Davis Homes Vice President of Sales & Marketing to get an update. He said, “We hope to begin development work over the winter and have an ability to start pulling home building permits by Fall of 2020.” When asked if they would do the 3 tiered community in stages, he responded: “At this point, we are planning to develop in a manner that would allow some of each.” The community will be called Ashton.
Cheswick near 38th and Kessler Blvd. North Drive never really got finished. Although M/I Homes built over 200 homes over an 11-year span, started in 2005, there is still a strip of property at the west end that was never developed. Now Pyatt Builders wants to build 29 houses on it. The challenge is that they need to modify a couple of commitments on the property before they can start building. They were supposed to present to Pike Township Residents Association last night at their meeting but canceled. Most likely they will present next month at the meeting. At his point, I would assume that they are wanting to build the same style and price point as the rest of Cheswick. Won’t know until I hear them present their proposal at the next PTRA meeting.
I doubt there will be very many new communities in Pike unless they are very small. Builders generally like to build at least 100 houses at a time. Plus they like to cram as many lots into a community as they can. The City of Indy, PTRA and Pike schools frown on this. Traders Point area is out of the question. They now have restrictions on development. Where does that leave the builder? I suspect that if a builder wanted to start a new community in Pike, they would have to buy up a lot of properties grouped together and tear down the old and build the new. Only time will tell.
This was an interesting one. I am a Board member on Pike Township Residents Association. (19 years) Other Board members sometimes give me referrals. This was one of those occasions. I was given the phone number of one of 4 siblings. Their mother owned the house. Because of health reasons, they had moved her out and were in the process of trying to sell her house.
First time I saw the house, all 4 siblings were there going through all their mother’s possessions. The eldest son had power of attorney and was the decision-maker/signer.
The house was in an older Pike community (1971) and had a few modifications. A dining room wall had been taken down to open up the kitchen/eating area and a half bath had been turned into a full bath. All in all this 3 bedroom, 2 bath was very saleable. The eldest son (from Texas) was thinking about making the family room/bonus room into a bedroom. MIBOR says in order to call it a bedroom; it has to have a closet. He thought this would improve the value of the house. Most houses in this community only had 2 or 3 bedrooms. There did not seem to be a premium for 4 bedrooms. I told him not to waste his time and money on building a closet. He agreed.
After 2 weeks of cleaning out the house, he called to me list the house. When I drove up to the house, I was amazed at the yard work that they had done. The curb appeal was fantastic. When I walked in, it seemed like a different house. They had moved everything out and cleaned the place thoroughly.
He signed all the documents; I put the lockbox on the front door and the For Sale sign in the front yard and headed back to my office. As I sat down at my desk, my phone rang. I answered and it was a buyer call about the house. Apparently they had seen my sign. I answered their questions and hung up. I entered the listing information into the Broker Listing Cooperative. Within the next 2 hours, there were 6 showing requests from other Realtors.
The following day we had an offer that was higher than the list price. The son accepted it.
Home inspections followed with long and extensive negotiations over repairs. It seemed that the siblings were not aware there were major repairs needed. After some discussions with the son, they decided to pay for them and move forward. The other choice was to not get things repaired, release the sale and wait for another offer. The challenge with that is that major items that are found during an inspection have to be disclosed. Disclosing the major items would limit buyers who would want the house and the buyers who would make an offer would low ball the price.
We were a week away from closing and there was not enough time to have the repairs done before closing. It was decided that if the estimates for the repairs were sent to the title company, they would pay the vendor out of the proceeds of the sale. Raw money passed at the closing table is against HUD rules. It is considered fraud. Having the vendor paid by the title company and putting it on the closing settlement statement is a normal practice. I sent the title company the estimates. They responded that the buyer’s lender would not accept estimates on the settlement statement. I called the vendor and asked if they could send me invoices for the repairs. They said they do not send invoices unless the repairs are paid for. I was in a catch 22 situation.
I had the son send a check to the vendor for the repairs and I got a “Paid In Full” estimate that the buyer’s agent and the buyer accepted. On to closing.
The son was in Texas and we had to do a remote closing for him. This has become very common and seems to be much easier than years ago. The only drawback is an added expense for the seller of about $150. For that price, an authorized notary comes to your home and has you sign all of your documents. They are emailed back to the title company. The notary also overnights the originals back to the title company.
The buyers closing went well. The buyer was very excited. Once she signed the last documents, she stood up and jumped up and down. She was extremely happy.
No two real estate sales are the same. Every transaction has its twists and turns. New agents are astounded by what we have to go through. To me, it is just another day at the office (or should I say in the field.)