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Selling your home can stir up a range of emotions you may not have expected. While you may feel excited about the opportunity to move into a new house, you may also experience feelings of sadness or loss as you prepare to sell your home. Use these tips to help overcome the wide range of emotions you may experience. C onfirm you’re ready Whether you’re downsizing your space after retiring or upsizing to accommodate a growing family, you need to make sure you’re ready for the home-selling process. Remind yourself why you’re selling your home—you can even create a list of reasons to serve as motivation and reassurance. If you’re having trouble preparing your home to sell, remember it is the people and not the place that makes the memories so special. It is crucial that you only begin the listing process once you’re ready. Otherwise, you may be looking for reasons not to accept potential offers. Start staging early You’ve created countless memories in your home, and these experiences can come rushing back as you begin to declutter and make changes to it. One of the first steps of the staging process is depersonalizing your home, such as removing photographs or memorabilia, so buyers can imagine themselves living in the house. Earnest Homes recommends making subtle adjustments—you may also need to change some of the personalized features you love, like painting the walls of a room a neutral color. Not seeing the smiling faces of loved ones throughout your home or the appearance of a room you’ve grown accustomed to may take some time to get used to. However, with Earnest Homes guiding you, you may feel a bit of relief by detaching yourself from the house. By starting the staging process early, you give yourself time to work through any emotions you’ll experience. Concentrate on the future An excellent way to overcome any feelings you may experience when selling your home is to focus on the future instead of the past. If you’re going to be house hunting, get excited about the homes you get to consider. If you have already bought a new home, start planning projects you’d like to tackle or how you’d like to decorate your new space. Set a realistic sale price While the memories you have made in your home are priceless, homebuyers are looking to pay strictly for the property. There can be a significant difference between your sentimental value and the fair market value. Avoid insisting on a steep price for your home, and work with your agent to decide on a reasonable price based on the current market. Leave for showings and open houses You should plan to leave your home during showings to avoid making buyers feel uneasy or pressured. However, sticking around in an emotional state could be even worse. Potential homebuyers may have less than flattering comments about aspects of your home, and it can be hard to hear. While it isn’t a personal insult, it can feel that way. These comments can be helpful, as any feedback your agent receives can help you address areas of your home that may need to be updated. Plan to go for a drive, visit friends or family, or hold a family bonding activity while potential buyers are inside your home. Don’t take negotiations personally Once you find an interested buyer, they may come back with repairs or concerns they want addressed before closing. There’s no reason to take offense, as this is part of the negotiation process. Remain calm, and work with your agent to find a middle ground where you and the buyer are happy. Remember that your goal is to sell your home, and most home sales have negotiations. Selling a home is an emotional experience. However, by remembering one chapter ending is another beginning, you can remain excited and hopeful about what lies ahead.

Are you a prospective homebuyer in Indianapolis with limited funds for a down payment or closing costs? Or perhaps you’re concerned about your credit score impacting your chances of securing a home loan. Don’t worry, because the Federal Housing Administration (FHA) loan, established in 1934, has opened doors to homeownership for millions of individuals in Indianapolis and beyond. This type of loan offers lower qualification requirements and provides loss protection for lenders, making it an excellent choice for those ready to explore homeownership. In this article, we will delve into the benefits, requirements, and even explore alternative FHA loan options, empowering you with the knowledge to make an informed decision for your real estate journey in Indianapolis and the surrounding areas. Benefits of FHA Loans: Making Homeownership in Indianapolis a Reality FHA loans have gained popularity in Indianapolis and surrounding markets due to the numerous advantages they offer. Let’s explore some of the significant benefits that make these loans stand out for aspiring homeowners in the vibrant real estate market of Indianapolis. 1. Lower Closing Costs in Indianapolis Closing costs are an essential part of any home loan, but FHA loans offer a distinct advantage for homebuyers. While conventional loans typically require buyers to pay 3 to 6 percent of the home’s purchase price in closing costs, FHA loans have lower closing costs ranging from 2 to 4 percent. The specific amount depends on factors such as your loan amount, credit score, and lender fees. Moreover, FHA loans allow you to roll these costs into your mortgage, easing the financial burden of purchasing a home in the thriving real estate market of Indianapolis. 2. Competitive Interest Rates in Indianapolis FHA loans are backed by the government, enabling lenders to offer borrowers low-interest rates. This feature makes it more manageable for homeowners in Indianapolis to cover their monthly housing payments, reducing financial strain and allowing you to enjoy the benefits of homeownership in this dynamic real estate market. 3. Lower Down Payment Requirement in Indianapolis One of the key attractions of an FHA loan homebuyers is the minimal down payment requirement. With as little as 3.5 percent of the purchase price, you can secure an FHA loan in Indianapolis. Furthermore, FHA loans provide the flexibility to receive gift assistance from family members, labor unions, employers, or other government assistance programs specific to Indianapolis. This assistance can be applied towards your down payment, making it even easier to fulfill the requirement and embark on your real estate journey in Indianapolis. 4. More Flexibility Compared to other loan options, FHA loans offer more lenient criteria, allowing individuals in Indianapolis and the surrounding areas with lower credit scores, past bankruptcies, or foreclosures to qualify more easily. Additionally, while conventional loans often restrict the borrower’s debt-to-income ratio to 43 percent of their total income, including the mortgage, FHA loans can permit a maximum DTI of 50 percent, depending on the circumstances. This increased flexibility widens the opportunities for aspiring homeowners in Indianapolis to secure the financing they need and find their dream homes in the diverse real estate landscape of Indianapolis. Requirements for FHA Loans: Meeting Eligibility Conditions in Indianapolis While FHA loans have more lenient requirements, borrowers in Indianapolis must still meet certain eligibility conditions. Let’s explore the key requirements you need to fulfill to embark on your real estate journey in Indianapolis with an FHA loan. Approved Home Inspection and Appraisal in Indianapolis To qualify for an FHA loan in Indianapolis, an FHA-approved appraiser must evaluate the property to ensure it meets the government’s health and safety standards. Additionally, a home inspection specific to Indianapolis must be conducted to verify compliance with the FHA’s minimum property standards, ensuring that your prospective Indianapolis home is safe and suitable for you and your family. Proof of Employment While a specific income amount is not a prerequisite for FHA loan eligibility, you must demonstrate a steady employment history with proof of income. This requirement assures lenders in Indianapolis of your ability to repay the loan and maintain financial stability as a homeowner in the thriving real estate market of Indianapolis. Mortgage Insurance and Premiums for Indianapolis Homebuyers To secure an FHA loan in Indianapolis, you must purchase mortgage insurance, which is included in your monthly mortgage payment, even if you make a 20 percent down payment. Additionally, an upfront premium of 1.75 percent of the loan amount is required, which can either be paid at closing or rolled into your mortgage. These insurance measures protect lenders in case of borrower default and ensure the stability of the real estate market in Indianapolis. No Delinquencies To be eligible for an FHA loan, it is crucial to have a clean financial record. You must not have any outstanding federal debt, judgments, or prior FHA-insured mortgage debts specific to Indianapolis. This requirement ensures that Indianapolis homebuyers are financially responsible and capable of meeting their obligations as homeowners. Drawbacks of FHA Loans in Indianapolis: Considerations to Keep in Mind While FHA loans offer significant advantages for Indianapolis homebuyers, it is essential to be aware of potential drawbacks specific to the real estate market of Indianapolis. Here are some points to consider before applying for an FHA loan in Indianapolis. 1. Property Limitations in Indianapolis FHA loans in Indianapolis are only applicable to single dwellings or up to four-unit properties. Furthermore, as an Indianapolis homebuyer, you are required to reside in one of the units. It’s important to note that FHA does not insure loans for recreational vehicles like boats and RVs. Additionally, funds from an FHA loan cannot be used to purchase a second home, investment property, or pay for upgrades, improvements, or renovations. 2. Seller’s Resistance Although FHA loans are attractive to buyers, some sellers in the Indianapolis real estate market may have reservations. The stringent requirements associated with home appraisals and inspections under government-insured loans can lead to sellers needing to address repairs upfront in Indianapolis and surrounding areas. Additionally, due to the lower eligibility requirements, there is a perception among sellers in Indianapolis that FHA loans are less likely to close, leading them to hesitate in accepting offers from FHA buyers in Indianapolis, even if the offer is at the full price. 3. Loan Limits in Indianapolis Each year, FHA calculates lending limits, establishing the maximum loan amount it will insure in different areas across the country, including Indianapolis. These limits vary depending on the type of home purchased. For instance, single-family homes in lower-cost areas of Indianapolis are eligible for up to $472,030, while those in higher-priced areas of Indianapolis can access up to $1,089,300. It’s important to consider these limitations as they might impact your ability to purchase a home in your desired location within the vibrant real estate market of Indianapolis. Exploring Alternative FHA Loan Options in Indianapolis: Meeting Specific Needs In addition to the standard FHA loan, there are various other types of FHA loans that lenders may approve in Indianapolis. Let’s take a brief look at some of these alternatives tailored to the unique needs of homebuyers in Indianapolis: Home Equity Conversion Mortgage (HECM) in Indianapolis Designed for older buyers aged sixty-two and older in Indianapolis, a HECM is an ideal option for those seeking a reverse mortgage. This unique program allows homeowners in Indianapolis to borrow against their home’s equity and choose between a line of credit, a fixed monthly amount, or a combination of both. FHA 203(k) (Construction Loan) in Indianapolis The FHA 203(k) loan is perfect for Indianapolis homebuyers looking to purchase a property and finance its renovation through a single mortgage. This versatile loan can be a fixed-rate, adjustable-rate, or long-term loan in Indianapolis. With the FHA’s protection, lenders can close on the loan before the final value and condition of the property are determined, ensuring smooth real estate transactions in Indianapolis. Energy-Efficient Mortgage (EEM) in Indianapolis With an EEM in Indianapolis, borrowers can use a portion of their mortgage loan to pay for energy-efficient improvements to their primary residence without needing to qualify for additional funds. These upgrades can significantly lower utility costs in Indianapolis, making homeownership more affordable and environmentally friendly. Seizing the Benefits of FHA Loans for Real Estate in Indianapolis An FHA loan presents an excellent opportunity to finance your home purchase in the vibrant real estate market of Indianapolis, especially if you are a first-time buyer or facing financial constraints. With lower closing costs, competitive interest rates, and a minimal down payment requirement, FHA loans make homeownership more attainable in Indianapolis. Remember to fulfill the necessary eligibility conditions in Indianapolis, and keep in mind the potential limitations and considerations associated with FHA loans in the dynamic real estate landscape of Indianapolis. If you’re ready to embark on your real estate journey in Indianapolis, reach out to a Matlock Group agent for a referral to one of our approved lenders for more information or to get pre-approved. We can guide you through the process and help you secure the financing you need for your dream home in Indianapolis and the surrounding areas.

Embarking on the exciting journey of purchasing your first home in Central Indiana or returning to the market after a considerable gap requires asking several crucial questions throughout the homebuying process. 1. Finding the Perfect Mortgage Company With a plethora of mortgage companies to choose from across Indiana and beyond, the task of selecting the right one can feel overwhelming. Take the time to explore and compare quotes from at least two or three mortgage companies to make an informed decision. Seek answers to key questions such as: What is the maximum loan amount I can qualify for when buying my first home in Central Indiana? How does my credit score influence the interest rate quoted for my mortgage? Do you offer specialized loan programs for first-time homebuyers? What are the prerequisites for obtaining preapproval to submit an offer? What are the associated lending fees? Can you provide an estimate of the monthly mortgage payments and closing costs, including the initial deposit, taxes, escrow, title insurance, and mortgage insurance? What are the current mortgage rates? When can I lock in the mortgage rate? How long does it typically take to receive a final mortgage commitment? By gathering this vital information, you’ll be better equipped to choose the mortgage lender that best suits your financial needs. Ask your Matlock Property Group real estate agent for suggestions of mortgage lenders they trust. 2. Gathering Essential Information Before Making an Offer While popular real estate websites can provide basic details about available properties, enlisting the help of a professional real estate agent can significantly simplify the search and purchase process, ensuring a more enjoyable and streamlined experience when buying your first home in Central Indiana. Make sure to ask your agent the following questions: How long has the property been on the market? Are offers currently being considered? Has it sparked a bidding war? What have comparable homes in the neighborhood recently sold for, and have they maintained their value? Does the property belong to a homeowners association? If so, what are the associated fees and coverage? Are there any ongoing or anticipated special assessments? What are the real estate tax amounts, and have there been significant increases in recent years? Can the seller provide a property disclosure that outlines the condition and integrity of the home? Have there been any renovations conducted by the seller? If so, were the necessary permits obtained and closed upon completion? Are there any easements that might impact your full enjoyment of the property, such as rights granted to others to use your land for specific purposes? Does the home boast a desirable location, offering convenient access to shopping, dining, entertainment, major highways, and airports? What is the walkability score, school ranking, and crime rate of the neighborhood? By asking these essential questions throughout the homebuying process, you’ll gain valuable insights and become a more informed buyer. Remember to carefully review the home listing information to determine what is included in the sale. Consult your Matlock Property Group real estate agent to ensure all the pertinent questions specific to buying your first home in Central Indiana have been addressed. Additionally, consider seeking the guidance of an attorney who can review your contract and legally represent you throughout the remaining stages of the transaction, providing you with added confidence and peace of mind.

YOUR FIRST HOUSE | BY CHRISTY MURDOCK EDGAR When most people think about buying a home, they think about neighborhoods, paint colors, and wish lists, not paycheck stubs and closing costs. However, in reality you’ll probably find that mortgage application and approval is one of the more time and energy-consuming aspects of the purchase process. Work your way through this list to make sure you are better prepared for the months ahead and the journey to the closing table. Check (and Repair) Your CreditWhen you first start thinking about buying a home, you’ll want to do a deep dive into your credit. Check with each of the big three reporting agencies (TransUnion, Experian, and Equifax) since each may have different information. If there are errors on your reports, reach out with corrections and required information. If your credit is just not great, there are ways to improve it. Here’s are a few suggestions: If you don’t have much credit, look for ways to build your credit record. Seek out a starter credit card, make regular, small charges and pay them off immediately. Look for programs that report your current rent and utility payments to the credit bureaus so that you can use your on-time payment record to build your credit score.If you have damaged credit, work on paying down existing debt and making on-time payments going forward. If you pay your rent and utilities on time, seek out reporting programs to allow you to use your positive payment history to rebuild your credit score.As you pay off credit cards and loans, don’t close out the accounts. Leave them open and at a zero balance, or use them for occasional, small purchases that you then pay off immediately. Part of your credit score comes from the length of time that you have had your accounts, so closing out an older account can have a negative impact. Organize Your Financial Records One of the biggest things you’ll have to do during the process of applying for your home loan is obtaining and providing a wide variety of financial records to submit to underwriting. Start gathering these now. When you apply, you’ll need the following: Tax returns (generally two-year’s worth) Pay stubs, 1099s, W-2s or other proof of income Bank statements and other asset statements Photo ID If you are using gift funds from a family member to finance your down payment, closing costs, or reserves, you will need to present a letter from that donor. The lender may request additional documentation, as well. Be sure to find out what donors and uses are acceptable for your particular situation. Find a Lender You will need to find a lender to work with on your mortgage application. You may find someone at your local bank or credit union, through an online lending platform, through a referral from a friend, or through your real estate professional. Make sure that you feel comfortable working with and communicating with your chosen lender so that you will feel confident throughout the process. Consider a Variety of Loan Options Don’t feel locked into a conventional, 30-year loan with a 20 percent down payment. While that scenario works for some buyers, it doesn’t work for everyone. Work with your lender to determine what types of financing options you qualify for and what types of financing will help you fulfill your goals. For example, if you are open to a larger monthly payment, you may find that a 15-year loan makes more sense than a 30-year loan. Just remember, there is no one-size-fits-all solution. Get Pre-Approved It will be important for you to work with your lender to obtain pre-approval before you begin looking for your home. This will allow you to better determine your budget and timeline. In addition, pre-approval helps you to make a stronger offer once you find the right home for you. Determine Your Budget Once you know how much you’ll potentially be approved for and what your interest rate will be, you can create a budget based on your down payment and your desired monthly payment amount. Remember, just because you qualify for a large amount doesn’t mean that you will want to spend that much. Let your comfort level determine your budget. Don’t Forget the Extras Remember, you don’t just pay the monthly mortgage and required down payment. There is an earnest money deposit (EMD) that you will need to have available as well as reserve funds that you will need to show. You’ll have closing costs, insurance costs, and other expenses associated with moving and setting yourself up in your new home. Try to keep an eye on the big picture when making your decisions during this time. Avoid Major Purchases and Changes to Your Credit You may want a brand new car to park in your new driveway or a houseful of new furniture and decorative items. While it would be fun to have those things in place on moving day, you’ll probably need to hold off until after the closing. That’s because changes to your credit report or to the amount of debt you carry can have major negative consequences on your mortgage underwriting and approval process. Expect the Unexpected A lot of things can happen on the journey to homeownership. You may find that your budget is different than you thought or that you have to make some compromises along the way. You may also find that some parts of the process you dreaded turn out to be easier than those things you thought were no-brainers. Stay open and stay in communication with your real estate broker to ensure that you are always in the best position to make good decisions.

The COVID-19 shutdown has brought with it unprecedented difficulties—accompanied in many cases by unprecedented solutions. Local, state, and federal government, private industry, medical establishments, and concerned individuals have sought to offset the fear and frustrations brought about by the pandemic. Beginning in its earliest days, proactive measures were designed to minimize the pandemic’s long-term impact—both personal and economic.As many parts of the country attempt to move toward something like normal, programs initiated in the first days of the pandemic are coming to an end or changing in scope. Among these, mortgage forbearance programs created for both government-backed and private mortgages will soon be running out of steam. Find out why this may be good news for frustrated buyers whose real estate goals have been hampered by tight markets throughout the past several months. Where did pandemic-related mortgage forbearance come from?When COVID-19 shutdowns first occurred in mid-March 2020, the federal government put through a number of measures to ameliorate the economic impact of potential job loss and a looming recession. Initially, the CARES Act was passed just days after the shutdown began, with subsequent updates, extensions, and enhancements added in the months following. Part of the CARES Act provided homeowners with the opportunity to apply for mortgage forbearance if they had government-backed mortgages. This included HUD-FHA, VA, and USDA loans, as well as loans backed by Fannie Mae and Freddie Mac. In addition, many mortgage providers offered their own forbearance programs, even for those borrowers without government-backed loans. When will forbearance end?After multiple extensions, forbearance is currently set to expire on September 30, 2021. That means that homeowners who are eligible for forbearance, either through government or private programs, must apply by that date. Further extensions could be added, though at this point there is no indication that they will occur. How is forbearance tied to increased inventory?According to a recent report by Zillow, 25 percent of borrowers who exited forbearance during the past year did so without bringing their mortgage up to current and without a plan for doing so. If this is an indication of future trends, many of the 1.7 million homeowners currently in forbearance will soon be exiting without a solid way of resuming their mortgage payments. Following forbearance, homeowners have a number of options: Resume paying their mortgage as currently structured while also getting caught up on missed paymentsApply to refinance their mortgage to make repayment more manageablePut their home on the market and sell it to pay off the mortgage.Zillow estimates that approximately 211,700 homes will go on the market as a result of the end of mortgage forbearance. This could create significant relief in markets that have been stretched thin by tight inventory caused by homeowners staying put during the pandemic. Person passing keys to other person above signed lease agreementHow can buyers prepare for a more active market?Buyers who were unable to purchase earlier in the pandemic may be beginning to see movement in their chosen markets. Recent months have seen increasing inventory, especially among smaller “starter” homes, and the end of mortgage forbearance may help contribute to this trend. Now, hopeful buyers should do the following to prepare for the changing market: Renew contact with lenders, real estate agents, and other professionals to begin exploring options and prices in your chosen neighborhoods. Be prepared to adjust your search parameters. The last few months have seen rising home prices and some changes in interest rates. You’ll want to run new numbers to see if your budget has changed or if you’ve been priced out of your favorite area.If you’ve changed jobs during the pandemic, you’ll need to talk to your lender and find out how this will affect your application. In some cases, as long as you are working in a similar field to your previous one, your job history won’t be significantly affected. Be aware of the way that your finances may have changed during the pandemic. If you’ve had to take on additional debt, or if you’ve paid off debt, your credit score may have changed significantly. This will, in turn, affect your interest rate. Talk to your real estate agent and find out if your real estate goals still make sense for your post-pandemic lifestyle. If your job is now permanently home-based, you may be able to trade that expensive in-town or commuter-friendly neighborhood for a more affordable one further from the city center.Similarly, if you were choosing your home based on the local schools, you may find that online school is working better for your children. If this is the case, you may want to explore school systems with more robust online classroom programs rather than focusing on proximity to physical classrooms.If you are working from home, your wish list may have changed significantly. If you and your spouse are both working from home permanently, you may need a larger space with more room for multiple home offices. You may forgo an open-concept floorplan for more private spaces. You may want to consider an accessory dwelling unit (ADU) or use a garage apartment as a separate office space for greater flexibility and efficiency.Consistent and clear communication with your trusted real estate professional makes all the difference, whether you are rebooting your home search or starting from scratch. Putting together a plan that makes sense for the way you and your family live now, and for what you’re expecting in the months and years to come, will ensure that you get the most out of your real estate purchase experience.

Among the many unexpected effects of the COVID-19 pandemic has been an unprecedented level of demand from homebuyers coupled with severe inventory shortages in markets all over the country. In order to overcome this ongoing challenge, many buyers are turning to new construction as a way to find the home they want in the location of their choice. Before you jump into buying a newly constructed home, it’s important to understand the process and determine how to navigate it successfully. Here you will find the ten best tips for making sure that your new home purchase provides everything you’re hoping for while staying on time and on budget. The most important step is to make sure you are represented by a Realtor to guide you through the process. 1. Determine your priorities at the startIt’s important for you to decide why you’re looking for new construction. Are you simply trying to overcome low inventory in your chosen market? Are you more interested in the personalization opportunities available with new construction? Is your budget the most important consideration or are you flexible enough to incorporate additional features that you find appealing? Know what matters most to you and think twice before you depart from your plan. 2. Optimize the location and lotWhen you’re able to choose your location and the style of your new construction home, it pays to think through the placement and orientation of your home on the lot. How will the front elevation relate to the street and to the neighbors? What is the view from the owner’s suite? The kitchen window? Where will the outdoor spaces be and how will they relate to the property’s best features? Think through curb appeal and livability when determining how your home will be situated. 3. Do your homeworkAll builders are not created equal, so it pays to check out the builder you’re thinking of using. Talk to a trusted Matlock Group real estate professional and find out what they’ve heard about your chosen builder. Talk to previous clients and look at online reviews. Try to determine what parts of the process have been most difficult for others, and think ahead to how you can avoid problems before they occur. 4. Explore builder-provided discounts and incentivesIn some cases, your builder may provide special offers if you use their in-house lender or if you close by a certain time. They may have spec homes that have fallen through during the contract period and which they would be willing to let go in exchange for a quick sale. Determine whether these specials are cost-effective in your case and whether they make sense for your wish list. Don’t jump in just because there’s a discount available—check out other options first, and crunch the numbers for each option before you decide. 5. Be careful when it comes to extras and upgradesThe biggest budget-buster for most new construction projects is the list of optional features and upgrades along with adjustments and changes during the building process. While you will no doubt want to take advantage of the opportunity to add some upgrades during the process, be smart about which ones you choose. Here are a list of times when it makes sense to choose the builder upgrade option: When the upgrade involves a structural change that would be easier and cheaper to implement during the building process rather than after.When the upgrade is something that you’ll particularly care about and enjoy using every day, like those in a kitchen or owner’s suite.When the upgrade will have a significant long-term impact on the home’s resale value or energy efficiency.When the cost through the builder is close to that charged by a contractor.Once you’ve made a decision, try to stick to it if at all possible. Change orders can significantly raise the cost of construction and contribute to delays. 6. Don’t be afraid to negotiateMany people falsely believe that there is no room for negotiation when working with a builder, but in fact, there are many areas open for negotiation other than overall price. You may be able to negotiate a reduced interest rate or reduced closing costs through an affiliated lender or title company, as well as a selection of upgrades and optional features. Work with a real estate agent or broker to choose the best options for your budget and timeline. 7. Ensure everything is in writingWhen you’re talking through your options with your builder or their representative, you may talk about options and prices in an informal way. Just remember that an assurance means nothing if it’s not in writing. Keep track of everything you discuss, and have your agent ensure that they are all properly noted in your contract. 8. Don’t forgo the home inspectionJust because it’s new construction doesn’t mean that you don’t need an inspection. Accidents happen and errors occur. We can recommend a well-qualified home inspector who’ll provide you with a comprehensive report of the condition of the property and what still needs to be completed before closing. 9. Keep track of guarantees and warrantiesThere will be guarantees and warranties for the building itself as well as its systems, appliances, and other features. You’ll need to keep track of all of these, along with their specific terms and requirements, in order to make sure that you don’t accidentally void them or wait too long to take advantage of the repairs and benefits they provide. 10. Expect the unexpectedNew construction has many great benefits but it can also have its share of problems. Be prepared for delays, mistakes, and other issues to crop up, and have a plan in place to address them. If everything is smooth sailing, great! If not, you’ll feel better knowing that you and a real estate agent have already thought through a number of eventualities, helping to ensure that you’re ready for anything. Matlock Realty Group agents are experienced and ready to help you select the right builder and guide you through the entire process. Don’t make one of the largest investments of your life without representation.Call today 317-863-6666 and let’s get started.

Recollections of the 2008 economic recession and the mortgage crisis that followed are fresh in the minds of many of the older Millennial and Gen-X homeowners burned by the housing market in the past. As buyers compete in multiple offer situations and pay well-above asking price for that new home—whether as first-time homebuyers or as move-up buyers—many are wondering whether the housing market is due for a correction. While firm predictions are hard to come by, the evidence suggests that there’s every reason for optimism as the 2021 market heats up. With economists predicting slower, more sustainable growth over the next year, fears of a bubble appear to be overblown. In addition, differences in the nature of this housing market upturn suggest that it is built on a more solid footing than the investor and financial speculation that led to the previous inflated valuations. Conditions that lead to a real estate bubble Generally speaking, a housing bubble occurs when there is an imbalance in the market that artificially inflates prices beyond their reasonable levels and expectations. The bubble pops once conditions force a return to more appropriate price levels, leaving those who bought at the top of the market with little equity and, in some cases, negative equity or underwater mortgages. The housing bubble that occurred in 2008 was the result of poorly underwritten subprime mortgages followed by speculation on the financial markets focusing on mortgage-backed securities. This double-whammy led to a spate of foreclosures caused by too little equity and the economic impact of the attendant recession. It is important to note that the 2008 recession was unusual in its focus on the housing market. Historically, in most recessionary periods home prices have held up as real estate is seen as a more secure investment when the economy at large is contracting. In addition, homeowners tend to hold onto their homes during a recession and avoid making big moves, increasing stability in the housing market. Conditions creating the current increase in market values Unlike many housing bubbles, the current rise in home valuations is fairly easy to understand and explain. The following factors have shifted the balance of supply and demand, resulting in the increases we’re currently experiencing in markets across the country. Because they are based on solid factors, these increases promise to be more reliable indicators of value than the speculative price increases normally associated with real estate bubbles. Historically Low Interest Rates One of the first actions taken to combat the economic effects of COVID-related shutdowns was to lower the interest rates for mortgages and mortgage refinancing. However, unlike the 2008 meltdown, this time lenders were better monetized and borrowing requirements were more stringent. This kept underqualified borrowers from taking out loans ensuring that those with better than average credit and reserves were the ones buying. Low Inventory Sales Environment While most metropolitan areas were already experiencing low inventory prior to March 2020, the current adjustment has been notable for the ongoing tight market conditions. This has been due to a variety of factors, including early slowdowns in the rate of new construction, the reluctance of homeowners to make major changes in the midst of a pandemic, and seller uncertainty regarding their ability to find a new home after the sale of their current one. Extended Spring Market Pandemic-driven shutdowns occurred in mid-March 2020, right in the middle of what promised to be an active spring market. Once real estate professionals and mortgage lenders got up to speed with virtual tour and transaction models, buyers once again began looking for their dream homes while homeowners sought larger spaces for work-from-home (WFH) and school-from-home realities. This has led to a sort of unending spring market, which now shows no signs of slowing as the 2021 traditional spring sales season approaches. Expanded Market Activity In most hot real estate markets, higher home sale prices and increasing activity is limited to the most desirable in-town enclaves and popular exurban markets. However, the availability of long-term WFH means that many markets that are normally overlooked—especially those in outer suburban and rural areas—are suddenly in demand. Offering more space and larger lots, these newly popular markets are seeing their share of increasing home value and marketability. Economic Indicators for 2021 The advent of improved treatment options, the rollout of vaccines, and the effect of pent-up demand from homeowners tiring of their current homes, as well as the incentive of multiple offer potential and still-low interest rates, all hold promise for increasing supply and ongoing demand. Coupled with record-low interest rates, even these higher home values are made more affordable, offsetting increased risk. Even those markets most affected by the pandemic, including in-town and condo inventory, appear to be poised for a comeback, easing concerns that those segments would experience a drop in value. In addition, experts foresee an increase in housing starts, leading to more available inventory and increasing affordability. As always, it’s important to talk to a Matlock Group real estate professional in order to better understand how conditions in your specific market and in your specific property reflect broader trends in the market at large. Our agents can give you insights on the most recent comparable property sales in your area and help you think through the decisions you need to make in order to optimize the value of your property and the equity in your home.

When we think of New Year’s resolutions, we normally think about ourselves—diet, exercise, daily habits, and other personal items. However, making resolutions that impact your finances are often easier to keep. What’s more, they tend to pay dividends long after those other resolutions have fallen by the wayside.Of course, for most people, the biggest asset is the home, so adding value there has the biggest financial impact. However, it can be intimidating to consider a home improvement project, both from a monetary and logistical standpoint. In fact, you may already have visions of scheduling contractors and taking out loans to finance needed improvements. The good news is that there are many ways to increase your home’s bottom line without breaking the bank. Here are ten things you should do in 2021 to make your home more beautiful, more valuable, and more pleasant to live in. The best part? All of these require minimal financial outlay while offering maximum return on investment. exterior view of house from street1. Add some curb appealYou may think that the most profitable home improvements are those you make in the kitchen and bathrooms. In reality, however, year after year, the biggest bang for your remodeling buck comes from replacing the front door and sprucing up the home’s facade. While you may need some help hanging the door, you can add new house numbers, a new mailbox, and new hardware yourself, quickly and inexpensively. man changing lighbulb2. Tick off that honey-do listDeferred maintenance is one of the biggest budget-busters homeowners face. As small tasks become big ones and things left undone begin to multiply, the remedy can often mean a major home repair and an expensive lesson learned. If you’ve got an extensive list of small repairs, it’s time to tackle them once and for all. Set aside a day or two and knock them out all at once, or add an item to your calendar once a week until they are all complete. 3. Create a maintenance scheduleOnce you’re all caught up with your fix-it list, you’ll want to create a schedule for ongoing maintenance. This may be as simple as walking the property both indoors and out once a month to check for peeling paint, standing water, or other minor warning signs of trouble. In addition, preschedule a spring and fall inspection and maintenance appointment for your systems, including HVAC, irrigation systems, and gutters. fresh cut lawn5. Invest in new greeneryYet another way to affordably improve the look of your home is with new plants and trees. Create planting beds, add tubs of seasonal flowers at the front door, or plant a fast-growing tree to provide shade and insulation to a sunny spot. Remember to favor plants that are native to your area in order to reduce time, money, and environmental impact related to fertilizer, water, and pest control. 6. Invest in smart upgradesSmart home improvements not only add value to your home at resale time—they pay for themselves in energy savings and convenience as well. Consider a fully integrated smart home system or start out small with a smart thermostat, doorbell, or door lock. Resolve to add a new smart upgrade to your system each season in order to gradually and affordably transform the way your home works. air conditioning unit outside7. Conduct an energy auditConsult your utility provider about an energy audit to find out what changes or improvements you can make to your home that will increase its energy efficiency. You may find that you’re losing a lot of money to leaky window frames and drafty doorways when a little caulk and sealant would make a world of difference. half painted blue wall8. Add a fresh coat of paintOne of the most affordable ways to transform a room—or your whole home—is with a brand new paint color. Start small by sprucing up your favorite room or go bigger by transforming your kitchen through painted cabinetry. You’re only limited by your time and your imagination. white cabinetry9. Update finishes and fixturesOne of the easiest ways to date a home’s interior is through outmoded light fixtures, switch plates, cabinet pulls, and other small finishes. The good news is that these are also among the most affordable changes you can make, and they are easy to DIY. Start small with drawer and cabinet hardware in kitchens and baths, then move up to freshly updated switch plates and outlet covers. Consider interior door hardware in a contemporary style, then have your handyman hang updated light fixtures and install new plumbing fixtures for the finishing touch. Consult with your Matlock Group real estate professional.Your most important 2021 resolution should be to have a cup of coffee with one of our real estate professionals, either socially distanced at your local coffee shop or via Zoom. They will be able to walk you through the design trends that everyone is clamoring for right now so that you can make a more informed decision about where to spend your home improvement dollars. In addition, you may want to ask for a referral to your agent’s most trusted home inspector. This will allow you to have a professional come in and view your home with a fresh set of eyes, and identify repairs and improvements that are needed. In addition, your home inspector can help you categorize your updates into those that are urgently needed and those that can wait a few months or even years.

If you’re a homeowner, you’re in luck. US homeowners are currently enjoying a boom in residential equity value. According to CoreLogic’s Homeowner Equity Insights Report, approximately 63 percent of US homeowners are experiencing an equity increase of more than 10.8 percent year over year between Q3 of 2019 and Q3 of 2020. That represents a combined equity value of more than $1 trillion in just one year. During the same period, negative equity fell by 18.3 percent year over year, resulting in greater security and financial stability for hundreds of thousands of homeowners. Much of this increase is due to the price growth generated by historically low interest rates and rising consumer demand. Tight inventory in many real estate markets resulted in multiple offer situations and homes selling well above asking price—and above comparable market values. In addition, some markets that generally do not see significant price fluctuations became more desirable as in-town dwellers sought increased space in suburban and rural areas. Generous long-term work-from-home policies further boosted the appeal of these markets which were often seen as safer and more cost-effective. While rising home prices initially generated fears of a real estate bubble, economists predict continued strength in the real estate market at large as pent-up demand continues well into 2021. In addition, continuing record-low interest rates contribute to affordability. How to get the most out of your home’s equity This increase in equity makes now a great time to sell or to otherwise tap into the equity in your home. If you are looking to put all of that unexpected potential to work, here are some things to keep in mind to maximize your home’s equity value. Make needed repairs and improvements Now is the right time for ensuring that your home is in tip-top condition. Many homeowners have spent the pandemic becoming intimately familiar with their home’s quirks and with small annoyances which had previously gone unnoticed. If you haven’t already, it’s time to start addressing minor problems before they become major ones. If you have or are obtaining a home equity line of credit, use it to make needed repairs and to upgrade your space if needed. If your home is out of step with most of those in your area— either in square footage or in terms of fixtures and finishes—it may be time for an update. This will ensure both that you enjoy your time in the home and that you maintain it in a way that will make it more marketable when it comes time to sell. Optimize virtual marketing opportunities If you’re considering selling your home, talk to a Matlock Group real estate professional about virtual marketing platforms and strategies so that you can successfully compete with other homes on the market and engage with potential buyers. In many cases, obtaining top dollar for your home sale is a matter of ensuring that homebound or long-distance buyers have options, including video and virtual tours, that allow them to connect with the space. Be sure to declutter your home and talk to your agent about strategies to optimize your home’s look on video. More light and a more streamlined look will go a long way toward ensuring that your home is properly positioned for eager buyers who are interested in your market. Go for cost-effective upgrades If you’re thinking about selling your home and want to make sure you get the most out of its current equity potential, opt for upgrades that offer high ROI along with cost-effectiveness. These include simple improvements like a new front door and updated landscaping for low-cost, high impact changes. Be careful of the law of diminishing returns when making home improvements, however, as some perceived upgrades may not be right for your market. A huge new addition may make your home more livable but may also make it far too large for your neighborhood. An expensive and elaborate outdoor space may be fun in the summer, but may be out of step with buyer demand in your market. Ensure that the changes you make offer proven, reliable returns. Talk to your real estate agent about your plans Home values are changing by the day, it seems, and no one is better positioned to understand the impact on today’s market than your Matlock Group broker. He or she can help you crunch the numbers, examine sale prices for comparable properties in your area, and come up with an updated market valuation based on current conditions. In addition, if you are planning to make changes to your home, a real estate agent is positioned to help you determine what buyers are looking for right now and to connect you with contractors and installers who can assist you with reliable service. If you are looking to refinance, a real estate agent is the best source of information and introductions to reliable mortgage providers in your area.

No matter what kind of floors you have, rough weather conditions can quickly cause serious damage to them. Refer to these tips when a winter storm hits to protect the integrity of the flooring in your home. Utilize floor matsPlacing a mat in your entryway is the easiest way to ensure clean floors when it snows or rains. This encourages your family and guests to wipe their shoes off before entering your home. Don’t be afraid to suggest that they take their shoes off completely, either. Invest in a steam mopIf you’re worried about hidden dirt and grime on your floors, it may be time to invest in a steam mop. The technology in this method effectively gets out tough marks on finishes like linoleum, vinyl, and even hardwood (just make sure your floors are sealed), while being gentle enough to use weekly. Try to be diligentWhile you can’t be expected to walk around your house with a paper towel roll every time someone forgets to take their shoes off, at least aim to be more attentive to your floors. You don’t want to wait until spring to clean up the spots from snow and sleet, which by then will be harder to deal with. Cover the carpets and rugsHard flooring may be pesky, but nothing compares to getting stains out of carpets and rugs. On a particularly snowy day, cover your floors with furniture pads. It may seem excessive, but you’ll thank yourself later for not having to do a deep clean of these areas! Choose cleaners carefullyThe right cleaners can make all the difference to the longevity of your floors. Traditional mopping for your hardwood floors is no longer the way to go and will just add more moisture to the mix. Use a cloth to take care of excess water whenever possible, and be quick about cleaning up areas that are prone to damage. Follow these cleaning tips to keep your floors looking shiny and brand new this season! Thinking of moving to a home with new floors? Give us a call!

What to Expect from the Closing Process By Christy Murdock Edgar When you watch a show on HGTV where an eager young couple is looking for a home, it usually ends when the offer is accepted. In real life, however, that is only the beginning of the story. The closing or escrow process has its own rules and challenges. By being prepared for each step of the process, you’ll be able to stay calm, cool, and collected—even if the unexpected occurs. Generally, the closing process takes anywhere from 30­–­60 days. In the case of a cash transaction, it may take less time to close, since much of the timeline is built around a loan approval. By contrast, in the case of a sale with a home sale or purchase contingency, the closing process can take quite a bit longer. Most escrow periods will include the following steps, though there may be some variability based on market conditions and the type of mortgage for which you are applying. Home InspectionOne of the first things that will happen after your offer is accepted is the home inspection. At that time, your inspector will conduct a thorough review of the home’s condition, including systems, appliances, finishes, and structural issues. If he or she identifies potential problems, you may ask for a secondary inspection from a specialist. You will receive a report after the home inspection, usually within 24 hours. You will then use this to determine whether or not you wish to continue with the transaction, ask for repairs from the homeowners, or plan to make repairs yourself after you move in. In some low inventory, high demand markets, you may choose an “information only” home inspection at the outset. That way the homeowner knows that you will not be seeking additional repairs based on the inspection report, though you’ll still have the option of exercising your home inspection contingency and discontinuing the purchase in the case of unacceptable structural or system conditions. AppraisalThe appraisal is designed to reassure both the buyer and lender that the home is worth the price you’re paying. This protects the lender from loaning money that cannot be recouped in the event of a foreclosure. It protects the buyer from making a bad decision and overpaying for a property that will not retain its value. If the appraisal comes back lower than the purchase price you have already agreed to, you have a number of options: You may choose to discontinue the purchase based on the appraisal contingency that was part of your offer.You may choose to add your personal funds to the loan in order to make up the shortfall from the lender.You may choose to ask the seller to renegotiate based on the lower appraised value.You may choose to ask for a reappraisal or provide information to the appraiser to justify the purchase price.If you choose to add funds to make up the shortfall, check with your lender to ensure that it doesn’t create problems with your loan underwriting. Loan Underwriting and ApprovalDuring the underwriting phase of your mortgage approval process, you will be required to gather and submit documentation to support your application and facilitate your approval. It is important that you do not take on any new credit or make any major purchase decisions during this time, as a significant change to your financial or employment situation could result in a denial of your mortgage loan. In addition, your loan officer may ask for repair receipts, proof of homeowner’s insurance, and other documentation before the loan receives final approval. All of this is done to ensure that the house is in good condition and properly protected since it is essentially serving as the collateral for the loan. Homeowner’s InsuranceYou will need to obtain a homeowner’s insurance policy before you can close on your house. Check with your current insurance company to see if you can bundle this with your auto or life insurance policy or check with your real estate professional if you need a referral to a reliable insurance agent or company. Clear to CloseThis is the indication that your loan has received final approval and that you are now able to schedule your closing. Once you have received the clear to close, you will also find out how much money you need to bring to the closing table and how you will provide that money, whether through a certified check or a wire transfer. Remember to communicate directly with your real estate professional in order to ensure that any wiring instructions you receive are legitimate. Hackers frequently access emails regarding home sales and send fraudulent wiring instructions. It is essential to exercise caution during this process and double-check any unexpected communication that you receive. Final WalkthroughEither the day before closing or earlier on closing day you will walk through your soon-to-be new home with your real estate agent. At that time you will check to ensure that the house is in the same condition as agreed upon in your sales contract and that any negotiated repairs have been properly completed. Should you find that there is damage to the home or that repairs have not been completed, you can still negotiate to have funds withheld at closing from the sellers in order to complete these items. Alternatively, the sellers can pre-schedule and pre-pay a contractor or repair professional of your choosing in order to ensure that the repairs will be completed after closing. Closing Day While closing day is exciting, you will probably find that it is a surprisingly relaxing part of the process. Your Matlock Realty Group agent will be with you every step of the way. We put your trust in us very seriously.

This year has been a long one for both buyers and sellers in markets all around the world. Disruptions to the spring real estate market, economic uncertainty, and, of course, the threat of illness caused unprecedented upheaval for anyone who was trying to make smart decisions about a home sale or purchase. If you’ve been looking for a new home to buy, you could be forgiven for feeling anxious and frustrated right now. However, there is no reason to give up on your goals and there are plenty of ways to ensure that you can still find the right home for you and your family. With a little flexibility and a willingness to recalibrate, you and your real estate professional will be able to help you achieve your goals and make the move that you’ve been dreaming about throughout 2020. Why buying a home is harder right now If you started out looking for a home during the early spring of 2020, chances are you may still be on the hunt. COVID-related disruptions slowed down and complicated many home searches just like yours. Here’s why you may have been struggling with multiple offers and a protracted search process. Low inventory COVID-19 brought with it many uncertainties including economic anxiety, job loss, and fears for physical safety. For many homeowners, this translated into an unwillingness to put their house on the market since they were initially unsure of how safe home tours and moving processes would be and whether a job disruption might interfere with their ability to purchase a new home. This led to low inventory in markets across the country, especially in specialty sectors like the luxury home market. Low interest rates One of the federal government’s first initiatives to offset the financial impact of COVID-19 was to lower interest rates to unprecedented levels. This has continued throughout the year since March and has resulted in truly extraordinary buyer demand. Coupled with low inventory, this demand has meant multiple offers and homes selling for well above both asking price and appraised value. Logistics Simply put, it can be difficult to look for a home right now, especially in highly competitive and desirable markets. Homeowners are less willing to allow in-person open houses or tours, meaning that some of your options may only be available via a virtual viewing. In addition, high demand may make it more difficult to schedule tours, informational inspections, and other aspects of the search and purchase process. How to overcome a frustrating home search If your home search has been protracted, you may be starting to struggle with the emotional and psychological impact. However, in order to achieve your goal, it can be helpful to take a step back and reposition yourself for a new strategy. Here’s how. Reevaluate your priorities What did your wishlist look like when you first started looking for a home? Did you insist on a turnkey space? Were you focused on a very narrow choice of acceptable styles or neighborhoods? Did you require that all of the updates and upgrades be made before you would consider a particular home? It may be time to re-evaluate your requirements and work with a real estate professional to formulate a new list of priorities. Here are some of the things to take into account as you rethink your home search: Some of the most previously in-demand neighborhoods may be less desirable if you are now able to work from home permanently and if you will no longer have to commute to work each day. Many home buyers are currently conducting information-only home inspections with no required repairs prior to closing. If you’ve been holding out for a turnkey property, you may now be willing to take on some of the improvements yourself in order to facilitate a successful home purchase. How has your lifestyle changed since the pandemic began? Some of the things you thought you needed may be different now. Perhaps the second home office is more important than the upgraded kitchen you previously required. Consider whether you need to revise some aspect of the size or layout of your space in order to expand your list of possibilities. Reexamine your options While you may have previously been looking for a single-family home, now you may be thinking about bringing an elderly relative to live in your household. You may be considering buying a duplex or a home with an attached apartment or carriage house, suitable for either short-term or long-term rental. Either of these options may provide additional income which would allow you to increase your budget and broaden your search. Talk to the experts A real estate professional knows what is working for other clients in today’s market, and what markets are becoming more in demand and where inventory is a little more plentiful. In addition, a real estate professional may know of pre-market listings that offer you a better opportunity for a successful purchase. A mortgage lender may be aware of more favorable loan terms which would allow you to work with a larger budget so that you can increase your number of potential properties. A contractor may have ideas about how you can turn an as-is fixer-upper into your dream home more affordably than you ever thought possible. By talking to the people who know the market best, and letting them help guide you to think outside the box, you may just find that your assumptions and requirements have been holding you back. Work with the experts to come up with alternative solutions to help you get into the home of your dreams. Call us today to get started: 317-863-6666