Indiana Real Estate

How can I determine the elevation and other geographic data of my property?

If you are thinking of buying or selling Indiana real estate then take time to review one of the coolest resources and interactive features to be found on the Internet.

Indiana Map. Created by the State of Indiana's "Geographic Information Council", the Indiana Map includes more information than you can imagine on the geology of Indiana including elevation, roads, rivers and much more!

Take a virtual tour of the entire state or locate a specific plot of Indianapolis real estate with just a few clicks of a mouse. The Indiana Map is located at: http://www.in.gov/igic/projects/indianamap/.

Use the Indiana map to take a quick look at the area surrounding any potential properties you are contemplating buying, calculate the distance to rivers or fishing, take an informal look at elevation or use it to quickly spot trains or major roads you might have otherwise missed.

It's powerful enough for commercial applications yet simple enough for consumers to use. Best of all, the State of Indiana provides it completely free of charge!

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What should I know about Inflation and Investing in Real Estate?

According to recently released data by the S&P/Cash-Schiller National Home Index, the United States housing market fell by 8.9 percent during 2007. If that wasn't enough to get the attention of Indiana real estate investors then consider this – the 8.9 percent decrease was not adjusted for inflation!

Inflation is one of the most important considerations to take into account when investing in real estate or any other major investment. In order to earn a "real" rate of return, it is necessary to

Recognize gains above and beyond the current rate of inflation. According to the government, the rate of inflation as measured by the CPI or Consumer Price Index is currently above 4 percent. The PPI or Producer Price Index was even higher at over 7 percent. This creates a situation of asset deflation (falling home prices) combined with monetary inflation which can wreck havoc – or create unique buying opportunities – for investors depending upon how it is used.

To explain let's assume you invested in Indiana new homes during the height of the market in 2006. One of the homes originally sold for $200,000. Under typical market conditions a home appreciates at an average of 3 to 4 percent annually (roughly the rate of inflation) so it would be worth about $208,000 by the end of the following year. But 2007 wasn't a typical year so instead, by the end of 2007 the home was now only valued at $182,000 due to the 8.9 percent drop in the market. Instead of seeing an $8,000 increase in value there is now an $18,000 decrease for a combined difference to your net worth of $26,000!

So how can this information benefit those interested in investing in real estate? By keeping these quick tips in mind:

1. Look to the Long Term. Historically-low interest rates combined with reduced prices and economic inflation creates a buying opportunity for real estate investors interested in longer term strategies.

2. Nominal Numbers Matter Less. Understand the difference between nominal versus inflationary calculations of value. Once home prices stabilize it does not automatically mean the buying opportunities are over. Keep an eye on the rate of inflation to determine the "adjusted" price of the home.

3. Chart the Cycles. Inflationary cycles are a natural and important part of the economy but don't last forever. They tend to benefit those prepared to take advantage of the first wave of growth in the money supply before prices adjust upward once again.

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What should I look for in a real estate office?

If you are thinking about listing Indiana homes for sale then take time to review the real estate office prior to making a final selection on a broker or listing agent. While there is a great deal written about how to select the perfect agent to represent your buying or selling needs, few people take time to consider how the real estate office impacts the process. Use this quick checklist to weed out the wrong relationship and assure your selling experience is as smooth, safe and successful as possible!

The Problem: Turn of the Century Technology. Real estate office equipment used to consist of little more than a fax machine and copier. The advent of the Internet rapidly transformed real estate into a high tech environment.

What to Look For: Take time to view the website, virtual tours, home listings and other technology used to showcase properties. More people than ever use online listings like those found at Homes and Land to find their new home so it is important to find a real estate office that is comfortable using the technology. Test how long it takes someone to respond to an email inquiry or other online request for information. If it takes more than 24 hours then keep looking!

The Problem: Tag Team Listings. Few things are more discouraging to home sellers than listing your home with an agent that you never or hear from again. Junior agents or other staff seems to handle most of the day to day issues after the contract is signed.

What to Look For: Some real estate offices and agents specialize in listing properties - not necessarily selling them. Request information on sales data before making your final decision. Also ask who will be the point of contact after the contract is signed.

The Problem: The "Caravan". Sellers around the nation have been shocked to encounter the real estate "Caravan" when putting their home on the market. Many real estate offices have a weekly caravan where a mile long line of minivans make their way to all the new listings for the week.

What to Look For. Select a real estate agent that makes things convenient for you - not their own staff! While a caravan may bring your home to the attention of several agents at once, it isn't always the best method to showcase the home. Decide if your home requires exclusivity and quality attention over quantity then select the office that meets your needs.

The Problem: Join the Crowd. Don't assume bigger is better when it comes to real estate offices. Sometimes it is just more crowded. Lack of available office space, loud background noise and competition for copy machines are just a few inconveniences you can do without.

What to Look For. Call the office to see how long it takes to reach help and test the background noise. Stop by for a quick visit to determine if you will be waited on or shuffled to the end of the line. Large or small, insist upon quality service and attention before making a final decision on the right real estate office for your needs.

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What quick tax tips should I know when investing in real estate?

Understanding the tax implications when buying or selling real estate is one of the most important considerations to keep in mind when investing in real estate. Learn how to take the sting out of tax time with these quick and easy real estate tax tips.

1. Get organized. Save receipts for all work, repairs, supplies and other costs associated with the property.

2. Expenses or Improvements. It's not always clear what qualifies as an expense versus an improvement so when in doubt, consult with your tax adviser. As a general rule of thumb, major upgrades such as installation of new flooring, upgraded appliances or a new roof will "improve" the value of the home. Repairs consist of fixing a portion of the roof, broken window or other measures designed to reinstate the property back to the original condition.

3. DIY or Hire-Out. If you hold investment real estate then calculate the cost of hiring out the labor versus doing the job yourself. Remember, for tax purposes you are not allowed to deduct the cost of your own labor but are allowed to deduct the cost of hiring contractors or sub-contractors to do the work for you.

4. Short or Long Term Taxes. Investment real estate held for one year or longer may qualify for Capital Gains tax treatment rather than simply added onto your income. For those who opt to "flip" or sell prior to one year, make sure you understand the full tax ramifications. Many people are surprised to learn how much they owe in taxes after the sale of a short term real estate investment property.

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What appliances come with my new home?

When purchasing Indiana new homes one of the features many buyers overlook is the appliance package. Research indicates the majority of new home buyers obtain their appliances through the builder but most simply opt for the standard package that comes with the home. Use these quick kitchen tips to create an appliance package that really sizzles!

1. Research Ratings & Reviews. Make sure the appliances are well rated by consumer reporting agencies and take time to read customer reviews.

2. Select Your Own. Many new home buyers don't realize they have the option to select their own appliances. Most builders "package" the appliances into the cost of the entire home; often using the MSRP (Manufacturer’s Suggested Retail Price) as the "cost" or "value" to determine the amount of the mortgage applied to appliances. You may come out ahead by using the same funds to select your very own appliance package - on sale! Not only can you buy more for the money but often find the exact features you want rather than settling for the models provided by the builder.

3. Warranty. Have the warranty transferred into your name with full copies of the information on each appliance provided before or at closing. By having the warranty information in your name it reduces the paperwork associated with any claim that may arise in the future.

4. Ask for Incentives. Builders are offering more incentives than ever including upgraded appliance packages with premium features and amenities.

5. Save or Trade. If you don't need appliances then ask the builder about applying the funds toward the cost of the home or "trade" for a spa, fireplace or other desired options.

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What helpful Indiana research tools are available?

When it comes to buying or selling real estate there is never such a thing as too much research. While the complexities of most contracts and in-depth research requires the services of a professional real estate agent, title company, tax consultant there are some Indian real estate forms and research tools you can use to save time and money.

1. Indiana Real Estate Tax Deductions: Indiana residents may qualify for a wide variety of exemptions or deductions based upon residential status, disability, former military service and other factors. To find out more and apply visit http://www.in.gov/icpr/webfile/formsdiv/51781.pdf.

2. Indiana Real Estate Commission: Contact the IREC to confirm professional licensure status, file complaints or learn more about the laws governing Indiana real estate at HTTP://www.in.gov/pal/2266.HTML.

3. County News & Information: Sign up for the Indiana's "What's Happening in My County?" newsletter for Free at HTTP://www.in.gov/gov/2950.HTML. This is a great resource for current residents or those thinking about relocating.

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