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Indianapolis Renters Beware: Fraudulent Advertising
Posted by: | CommentsHeads up to Indianapolis renters. I have had approximately 10 calls from renters in the last 60 days who are inquring about great rental deals that they have seen on the internet.
They find my website through Google and call me because a property that they are interested in renting (and that appears on rental websites) also appears on my site for sale through the Indianapolis BLC (MLS) system. These fake ads are often www.craigslist.org postings or similar websites where vacant homes for sale around Indianapolis are posted for rent.
A significant number of these postings are done fraudulently. An individual in another state (Texas in my recent examples) picks a home from the Indianapolis BLC (MLS) system, copies over the photos, description and address. They post a rental ad on a website and are contacted by sincere, interested Indianapolis renters who recognize that the ad might be too good to be true.
An email dialogue develops after the renter contacts the “landlord” through the www.craigslist.org posting. There is typically a hard luck story and an explanation of why the landlord can’t return to Indianapolis immediately from out of state to show the home. However, the prospective tenant is informed that a deposit check will ensure that the property is not rented to anyone else in the interim. Often, the “landlord” also requests personal information for a “credit check.”
If you are renting a home around Indianapolis, ask the landlord to meet you at the property before submitting a deposit and for him to bring identification and something to substantiate ownership (a utility bill, mortgage statement etc.).
If you suspect that you have been involved in a fraudelent scheme, please report the incident to the FBI Cyber Crimes Unit at http://www.ic3.gov/default.aspx
What Hail Damage Looks Like on Gutters
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Hail damage to a gutter is typically from the inside out.
Here is a quick photo that I snapped of a home in Washington Township in Indianapolis on July 5, 2010.
Do you see the hail damage that has dented the gutters from the inside out? It almost appears as if it was dented with a hammer. Hail from this storm came in from the northwest. This view is from the southeast corner of the home.
Most hail damage to gutters is from the inside out. Another tell-tall contact point for hail is on top of the roof on the box vents. The same type of dents will be visible there in a heavy hail downpour.
Shopping For Mattresses, Or How Buy A Good Night’s Sleep
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NBC’s The Today Show hosted Consumer Reports for its take on mattresses. Some of the results may surprise you.
At 7 minutes, the video is long, but it’s stuffed with helpful comfort tips, including the scientific reason why a mattress should be replaced every 8 years or so. Some of the other advice includes:
- How to reduce morning aches and pains with proper pillow choices
- Why “hot sleepers” should stay away from memory foam
- How to properly test a mattress in the store before you buy it
After its testing and a series of interviews with consumer and industry workers, Consumer Reports also concludes that — for a queen-sized bed — a $1,000 list price is going to give you “a lot of bed”; there’s little need to spend more. And, furthermore, because mattress prices are usually negotiable by half-off or more off, you could buy that $1,000 mattress at a significant discount.
More than 70% of people successfully negotiate lower mattress prices.
Consumer Reports acknowledges that there’s no “#1 mattress”, per se, because mattresses are a personal fit in terms of both firmness and size. With respect to durability, however, most will last for years.
The Headlines Were Overly Rosy On February’s Case-Shiller Index
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Earlier this week, Standard & Poors released its February Case-Shiller Index, a home price tracker for select metropolitan areas.
Overwhelmingly, home values fell in the 20 markets tracked by the Case-Shiller. Only San Diego showed a modest increase. The other 19 markets averaged a 1.23 percent decline between January and February.
However, that’s not the story you read in the most papers. Instead, headlines read that home values were up in the United States, citing annualized data.
Unfortunately for active home buyers and sellers, year-over-year data isn’t all that helpful when making a real estate decisions. It’s the month-to-month data that matters. Month-to-month changes in home prices are what defines a housing market. Month-to-month is what sets the tone for contracts and negotiations on a purchase.
The rosier, annualized data published this past week just doesn’t capture the reality of what was the February 2010 market. And even then, the data is somewhat useless because it’s from February and May will be upon us next week.
Case-Shiller is on a 2-month lag — hardly reflective of the “right now” of real estate in Indianapolis.
When you’re looking for real estate data that actionable, consider using sources that are more “real-time”. A real estate agent may be the right place to start. Because for all the data that Case-Shiller and the other housing indices collect, it can never be as relevant to your individual needs as a well-executed, timely market analysis.
The Fed Adjourns From A 2-Day Meeting Today And What It Means For Mortgage Rates
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The Federal Reserve adjourns from a scheduled, 2-day meeting today. It’s one of 8 scheduled Fed meetings for 2010.
Upon adjournment, Fed Chairman Ben Bernanke & Co. will release a formal statement to the market. In it, the Fed is expected to announce “no change” in the Fed Funds Rate.
The Fed Funds Rate is currently in a target range of 0.000-0.250 percent.
The Fed Funds Rate is an inter-bank lending rate. It’s also the basis for Prime Rate, a consumer interest rate on which credit card payments are based, among other consumer loans. Prime Rate is equal to the Fed Funds Rate + 3 percent. Credit card rates, therefore, will likely stay flat today, too.
Mortgage rates, however, should change. Possibly by a lot. The 30-year fixed mortgage does not correlate with the Fed Funds Rate (as shown in the chart at right).
The reason mortgage rates will change today is because, in its statement, the Federal Reserve will highlight vrious parts of the economy, identifying strengths, weaknesses and probable threats to growth.
These observations influence investors with a stake in bond markets and future returns and, with Wall Street on edge right now — unsure of whether recent economic growth is a longer-term trend or a short-lived blip – mortgage rates could shoot higher or they could drop, depending on how traders interpret the Fed.
It’s a difficult time to be shopping mortgages in Indiana.
Further complicating matters is Greece’s recent debt downgrade to junk status. A small contagion fear is budding worldwide and, as a result, the flight-to-quality has picked up steam. Mortgage rates are down because of it but could reverse higher at any moment.
Therefore, if you’re actively shopping for a mortgage today, it may be prudent to lock your rate ahead of the Fed’s announcement and any major market reversal. Mortgage rates may fall today, but there’s very little room for them to fall. This is, however, a lot of room for them to rise.
The Fed adjourns at 2:15 PM ET. Call your loan officer to lock your rate.
A Simple Explanation Of The Federal Reserve Statement (April 28, 2010 Edition)
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Today, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged within in its current target range of 0.000-0.250 percent.
In its press release, the FOMC noted that, since March, the U.S. economy “has continued to strengthen” and that the jobs markets “is beginning to improve”. This is a step up from the last meeting after which the Fed said jobs were “stabilizing”.
It also reiterated that business spending “has risen significantly”.
Today’s statement marks the 7th straight press release in which the Fed shows optimism for the U.S. economy. Furthermore, the Fed has now closed all but one of the programs it created to support markets during last year’s financial crisis.
Threats remain to growth, however. The Fed fingered a few:
- Employers are reluctant to hire new workers
- High unemployment threatens consumer spending
- Consumer credit (still) remains tight
Also in its statement, the Fed re-acknowledged its plan to hold the Fed Funds Rate near zero percent “for an extended period”. This was expected.
Overall, the statement’s tone was positive and the Fed noted that inflation is within tolerance.
Mortgage market reaction has been muted thus far. Mortgage rates in Carmel are unchanged post-FOMC.
The FOMC’s next scheduled meeting is a 2-day affair, June 22-23, 2010. The 55-day span between meetings will be the FOMC’s longest of 2010.
The sales of newly-built homes soared in March. Even more than what was expected. But the news may not be as glowing as what the media is telling us.
Take a look at the headlines from last Friday:
- Sales of new homes rocketed up 27 percent in March (WaPo)
- New-home sales rise fastest in 47 years (CNNMoney)
- Sales of New Homes Climb by Most Since 1963 (Business Week)
None of these statements is false, per se, but each is somewhat misleading. The biggest reason why March’s New Home Sales was even able to rise 27 percent is because data from the month before it — February — was the worst in New Home Sales history.
In February, new homes sold posted its lowest level in recorded history.
A better comparison would be against March a year earlier; or October 2009, the month before the home buyer tax credit’s initial expiration date.
Against both of those time periods, March 2010 fared well.
Home buyers – first-timers and repeats alike — went under contract last month, taking advantage of the soon-to-expire federal home buyer tax credit program. The credit gives up to $8,000 for first-time buyers and up to $6,500 for repeat ones.
Buyers must be in mutual contract on or before April 30, 2010 to be eligible for the credit, and must closed on or before June 30, 2010.
The New Home Sales data included other strong housing data, too. The current supply of new homes nationwide is at a multi-year low. Along with stronger home demand, this should push Carmel home prices higher throughout the coming months.
It’s no wonder builders are bullish on the economy.
How To Clean Your Grill For Better Tasting Food
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A well-maintained grill is the key to great tasting food, season after season — chicken, meats, fish or other. And keeping your grill clean is simple.
In this 4-minute from Lowe’s, you’ll learn basic, pre-grilling cleaning tricks, plus how to breakdown your gas grill completely and clean its parts.
Some of the pointers from the video:
- Clean your grill before every use using the grill’s own heat and a wire brush
- Don’t try to clean rusted and/or broken grill grates — replace them
- After long periods of non-use, check your burners for insects and pests
The video is geared at beginners and includes a step-by-step tutorial. Even the most seasoned griller could probably pick up a tip or two.
Home Resales Boom Into The End Of The Tax Credit; Home Values Seen Rising.
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Existing Home Sales rose in March, as expected. U.S. home buyers closed on 7 percent more homes as compared to February.
Furthermore, versus March 2009 — a month many people equate to the low point of the U.S. economy — sales volume was up 16 percent.
“Existing home sale” is the technical term for a home resale; a home previously inhabited by a person. It’s the opposite of a “new home sale” which is a sale of a newly-constructed home.
Existing Homes Data is tracked by the National Association of Realtors® and a closer look at the March data reveals some other interesting notes:
- Year-over-year sales are higher for the 9th straight month
- Real estate investors represented 19 percent of all homes purchased
- First-time home buyers account for 44 percent of all buyers
Also worth noting is that the supply of available homes is down on a broader basis. At the current rate of sales, the existing home inventory will be exhausted in 8 months.
Despite banks releasing foreclosures and REO into the Indianapolis market, that’s still one half-month less from February.
When supplies drops, home prices tend to rise. It suggests an underlying strength in housing that should support home prices through the next few months — especially as the home buyer tax credit finishes working its way through the system.
That said, real estate markets are local. You shouldn’t assume that what’s happening on the national level is also happening here at home. Be sure to check with your real estate agent about local market conditions before making a decision to buy or sell.
Fight Your Real Estate Property Tax Bill Without A Lawyer
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More than 60 percent of U.S. homes are “over-assessed”, says an industry trade group. Homeowners in Carmel pay more in property taxes than they otherwise should have to. You might be one of them.
Have you considered fighting your real estate tax bill?
In this 4-minute piece from The Today Show, you’ll learn:
- When to file your tax bill dispute for the best chances of winning
- How to pull your “property card” and check for tax bill-raising errors
- What to do if the taxing authority turns down your request
Most importantly, you’ll learn that don’t need to hire an attorney to fight your tax bill. You just need to be prepared. Do your research and make your case. It’s estimated that nearly half of all contesting homeowners are successful.
