2014 Geist Real Estate Forecast

Area Realtors See 2014 as a Home Seller’s Market

Kim Troyer with Keller Williams Realty

After some slow years in the real estate market, buying and selling picked up in 2013 (14 percent better than 2012, notes Kim Troyer of Keller Williams), and the outlook for 2014 looks positive too. Of course, you wouldn’t know it yet, thanks to the crazy winter weather.

“2014 is starting off just a little softer than 2013,” says Chris Schulhof of Re/Max Realty Services. “Based on current activity, when the weather breaks, I anticipate the spring to be very strong, as interest rates have pulled back slightly from fall levels.”

“The talk among agents is the surge in business that seems to be building,” says Lee Bailey of The Pfahler Group at Re/Max Metro. “We are all preparing for a much busier and competitive housing market in the coming year.”

Julianne Deely-Frost of Prudential IN Realty Group has already sold more homes in 2014 than she had for the same period 2013.

Julianne Deely-Frost of Prudential IN Realty Group says she’s already sold more homes at this point in 2014 than she had for the same time period in 2013. She envisions interest rates stabilizing at their current level, which is great for buyers.

All types of buyers are in the market all year long, says Marie Ippolito of F.C. Tucker Co. Retirees are looking for ranches or main-level master suites. Growing families usually prefer two-story homes. Single people tend to focus on townhomes or condos. Denise Silk of Re/Max Legends notes, “Lakefront homes are always desirable and in demand, regardless of any specific neighborhood.”

Denise Silk of Re/Max Legends notes, “Lakefront homes are always desirable and in demand, regardless of any specific neighborhood.”

“In addition, with aging parents and post-college-age children sometimes staying at home longer, mother-in-law suites or studio-type living areas — whether located in the basement or an over-garage apartment or pool/guest house area — are an added selling feature,” says Mary Ann Avery of F.C. Tucker Co.

Fishers, Carmel and Mt. Vernon are doing well, says Paula Smith of Leo Signature Realty, “particularly in the area of Fishers around the town center — 116th and west of 69.”

It will be a seller’s market

A tight inventory, notes Angela Duggan of F.C. Tucker Co., means 2014 is going to be a seller’s market rather than a buyer’s. Tucker colleague Laura Turner agrees: “It’s still looking like a seller’s market. Great homes, priced correctly, are selling quickly, in less than a week’s time,” she says.

Incoming jobs to the area mean a crop of new residents-to-be looking for homes.

“I believe the most competitive market will be in the under $350,000-priced homes,” says Patty Torr of F.C. Tucker.

“I believe the most competitive market will be in the under $350,000-priced homes,” says Patty Torr of F.C. Tucker. If you have a luxury home with a higher price than that, it may not sell as quickly or at the price you hope.

While it’s a seller’s market this year, that doesn’t mean you can get top dollar without trying. “A home is worth what someone is willing to pay for it — not what the seller thinks it is worth,” Torr explains. “To sell, a home should be in good repair and be a pleasure to visit.”

“The homes that are staged well and upgraded and priced well will sell very quickly,” says Deely-Frost.

Josh McNair of Re/Max Legends Group suggests making updates to your home before listing them.

Avery notes that updates may not reflect a dollar-per-dollar return in the final sales price, but they can help you sell your home more quickly.

Josh McNair of Re/Max Legends Group agrees. “Many of the homes that started going up in the ’80s around Geist are starting to show their age. So if you want your home to send out and sell quickly, make the necessary updates, declutter and clean,” he says.

Troyer says that buyers will either take a pass on homes with minor cosmetic defects or will demand significant discounts for them.

All Realtors say pricing the house right at the outset is key. “Those who overprice a home to test the market in most cases hurt themselves, as the home becomes stale within the market and ends up selling for less than it could have if priced correctly to begin with,” Schulhof says.

“Consult with a real estate agent to do an in-depth and personal analysis of your home’s market value. The most action on properties for sale generally happens in the first 30 days,” Avery says. “Plus, remember 90 percent of prospective homebuyers start on the Internet today, so attractive photos are paramount.”

Advice for buyers

“With aging parents and post-college-age children sometimes staying at home longer, mother-in-law suites or studio-type living areas are an added selling feature,” says Mary Ann Avery of F.C. Tucker Co.

From a buyer’s standpoint, Smith says that the homes with the best deals are likely to be those that don’t fit what “everyone” wants. “Many buyers in this area would like a three-car garage, basement and four bedrooms. If a buyer can do without one or more of those items, the value they will receive is likely to be greater,” she says.

“Buyers might just have to pay list or just over list to get their dream home,” Turner says, because three other buyers also probably think your dream home is their dream home too.

Duggan says luxury home prices “will continue to be flat. That is where the deals are. Waterfront and bigger, older homes that need updating will be a deal too,” she says.

If some extra money or elbow grease is no object, you may be able to get a good deal on a home. “If a buyer is willing to do the cosmetics or even a whole-house remodel, he can find a deal,” Silk says.

A tight inventory, notes Angela Duggan of F.C. Tucker Co., means 2014 is going to be a seller’s market rather than a buyer’s.

“Borrowing renovation money rolled right in with your purchase price [203K Renovation Loan] is definitely gaining popularity with a whole new set of buyers,” Bailey says. “This allows the option to buy a cheaper home and make the upgrades right away.”

Just be sure you know what you’re getting into. “A foreclosed/short-sale home might have the least cost per square foot, but a smart buyer will evaluate what money will need to be put into this home to make it livable and what that will do to the overall cost per square foot compared to homes that are in move-in condition,” Ippolito says.

New construction is likely to continue its upward trend in 2014, McNair says. A shortage of ready-to-develop lots will probably mean higher prices, Troyer says. If you want an upper-end home, an existing home may be a better financial bet than building your own. “This effect moderates with lower-cost homes,” she notes.

Even though sellers have the upper hand now, buyers would be wise to jump into the market while interest rates are still fairly low.

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