TAKE THIS QUIZ!

Here's a short list of questions. Take time to answer them and today's message will be crystal clear. It needs no further explanation, so enjoy!

Name the five wealthiest people in the world.
Name the last five Heisman Trophy winners.
Name the last five winners of the Miss America pageant.
Name ten people who have won the Nobel or Pulitzer Prize.
Name the last half dozen Academy Award winners for best actor and actress.
Name the last decade's worth of World Series winners.

How did you do?

The point is, none of us remember the headliners of yesterday. These are not second-rate achievers. They are the best in their fields. But the applause dies. Awards tarnish. Achievements are forgotten. Accolades and certificates are buried with their owners.

Here's another quiz. See how you do on this one:

List four teachers who aided your journey through school.
Name three friends who have helped you through a difficult time.
Name five people who have taught you something worthwhile.
Think of a few people who have made you feel appreciated and special.
Think of five people you enjoy spending time with.
Name half a dozen heroes whose stories have inspired you.

Easier?

The lesson?

The people who make a difference in your life are not the ones with the most credentials, the most money, or the most awards. They are the ones that care.

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  Tax Credits for Replacing Heating and Cooling Systems

  Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500. Read

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  Tax Credits for Non-Solar Water Heaters

  Cut your energy bills and your IRS bill by installing a non-solar water heater that’s eligible for a federal tax credit worth up to $1,500. Read

• 

  Tax Credits for Installing Biomass Stoves

  A federal tax credit makes energy-efficient biomass stoves a more affordable option for cutting winter heating bills. Read

• 

  Tax Credits for Adding or Replacing Insulation

  A federal tax credit makes adding insulation an even cheaper way to improve your home’s energy efficiency and cut your heating and cooling bills. Read

• 

  Tax Credits for Replacing Windows, Doors, and Skylights

  If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable. Read

Original article by Jeanine Skowronski

Pool/Hot Tub 

Earlier this year, consumer review website Angie's List polled more than 500 remodelers, real estate agents and contractors to determine what types of home improvement projects netted the highest return investment by increasing the value of a house. The project netting the lowest investment return, surprisingly, was a pool installation.

In-ground pools cost between $20,000 and $60,000 to install, but a homeowner wouldn't even recoup half of that. You won't get much more on smaller pools, hot tubs, or whirlpool baths, either. Moreoever, if the homeowners were ever looking to move, their home may take longer to sell. "Some buyers do not want a pool due to the maintenance, cost and liability," Anne Millians-Roche, president of Owens Realty Network in Florida, explains.

Additionally, fish-out-of-water families may want to purchase their pool after they've secured a homeowner's insurance policy, since a cement pond can drive up monthly premiums.

Putting in a Home Office ... or Monster Garage

What are other costly remodeling projects that might not be worth the expense? Installing a home office or a monster garage, which only recoup about a 60% investment return, according to Angie's List. Both will impact your ability to relocate significantly.

Why? Doing unique and costly remodels essentially puts your home in a niche market. A home office won't appeal to large families needing to covert it into a third bedroom. And the giant cave holding your car, meanwhile, might alienate those not devouring Car and Driver.

"The more unique the improvement, the narrower the market, and the harder the property is to sell, which eventually impacts sales price," Brian Coester, CEO of Coester Appraisal Group, explains. "If a homeowner's upgrades produces unique results, those improvements could end up costing the borrowers thousands of dollars in lost time on market or even equity."

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Over-Decorating the Interior

If you're really sold on the idea of a home office, your best bet is to keep it simple. Don't paint the walls red, hang ornate chandeliers from the ceiling or weld the desk to the floor. Similarly, refrain from selecting orange countertops or patterned wallpaper for your kitchen. And definitely refrain from installing wood paneling.

"Paneling was great back in the '60s, '70s, or even '80s. Now, people are into clean exteriors," Reggie Marston, president of Residential Equity Management Home Inspections, says. He points out that you would probably have to undo all of the personal touches you added before putting your home up for sale, which could be costly and time-consuming.

"Homes for sale should look fairly neutral so the buyer can picture his or her family living there," Millians-Roche says. "If a seller redecorates to his/her taste and it is 'bold' or unique, it will definitely take away from the house."

Illegal Repairs

Even those intent on living in their home forever need to make sure their upgrades are installed legally. Many major renovations require permits from your state due to the safety risks involved. Marston recommends contacting your local Building Inspections Department before completing any major renovations to ensure proper permits are obtained and you understand the safety codes thoroughly.

"Chances are illegal improvements will be flagged by a buyer's home inspector or appraiser," Cleaver says. "Then you not only pay municipal fines to get after-the-fact permits and inspections, but you've destroyed the trust your buyer has in the house -- and in anything you say about the house."

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DIY Structural or Electrical Repairs

Similarly, if a project requires a professional, get a professional. And this is not only because you'll have to fix substandard work if your house ever goes on sale. Marston cites instances where shoddy do-it-yourself decks have fallen off of houses, resulting in injury or sometimes even death. Faulty electrical wiring or poor structural repairs can be just as deadly.

"Poor construction can harm the homeowner and their neighbors if, for example, a house was to catch fire," Florida contractor Kia Ricchi says. "Construction should be done by licensed and insured professionals."

Fiddling with the Floor Plan

Generally speaking, walls that are up should stay there. Railroad-style rooms you have to walk through to get to another room as well as long extended additions are prime examples of poor layout planning, says Benuska.

In line with this mode of thinking, don't add walls where there currently are none. Don't attempt to change a one-bedroom into two with a divider, either. Homebuyers will be turned off by a bedroom that's more like a crawl space.

"Original architects and builders usually had a good sense of how a floor plan should work," Benuska says. "Trying to make a house into something it was never meant to be can be a problem. Additions should be appropriate to the overall scale of the house."

Forgetting the Amenities

California real estate broker Susan Anderson once asked a client to remodel his condo prior to placing it on the market. He put in a lovely gallery-style kitchen, but there was one minor flaw: He didn't install an oven. Instead, the client opted for a small convection microwave that would meet his unique dining needs. In the oven's place, he added custom cabinets for show. But if buyers fixed the problem, they would have had to renovate the kitchen entirely. And of course, this condo never could sell. The moral? "When remodeling, make sure you include the minimum standards the average person would expect to find," Anderson says.

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Granite Countertops

Granite countertops aren't the problem. It's just most of your neighbors probably don't have them. You could shell out thousands of dollars only to never see any return.

"If you took a home you purchased for $300,000 and added $150,000 in improvements, you would like to make back what you paid for the home plus improvements ($450,000), but the market in your area may only be around $350,00 for the same size home," Patrick Liska, owner of KBM Remodeling Consultants, explains.

If marble floors haven't caught on in your neighborhood, you might want to refrain from installing those as well.

Muddling

Home improvements should be in tune with your neighborhood, but they also need to fit the style of your own abode as well. For example, if you own a ranch house, don't install an ornate iron doorway trimmed with gold leafing. Combining two discordant styles is what Marston calls "muddling," and it may make prospective buyers pass on your listing.

"Never make upgrades just for bragging rights," Cleaver says, referring to those coveted granite countertops. "If [they] make the rest of the kitchen look tired and shabby, better spend the money on new appliances that add flash and functionality."

Better Bets

So what type of renovations are actually worth your money? Angie's List recommends a proper remodel of a kitchen or a bathroom, which costs around $20,000. It will net you an 85% and 84% return on the investment, respectively, thereby increasing the value of your home.

Beyond that, decks are favorably received projects that recoup about 80% of the money you spent. And you can never go wrong with adding safety features, such as new, energy efficient windows or upgraded exterior siding, to your home. Those projects also have, on average, an 80% investment return.

For residents in Carmel, Fishers, Noblesville, and Indianapolis Indiana, let the Borushko Team help before you make a decision on home improvements. We will gladly keep you informed about the home improvement trends and area "standards" so you get the best return for your home improvement dollar.

Keep up to date with the real estate values and trends in your area with Market Snapshot, a free service brought to you by the Matt Borushko Team of Keller Williams Realty.

10 Worst First Time HomeBuyer Mistakes

Are you gearing up to buy your first place? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Sounds simple enough, right? Unfortunately, many people make mistakes the prevent them from achieving this simple dream. Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign.

1. Not Knowing What You Can Afford
As we've all learned from the subprime mortgage mess, what the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. If you don't already have a budget, make a list of all your monthly expenses (excluding rent), including vehicle costs, student loan payments, credit card payments, groceries, health insurance, retirement savings and so on. Don't forget major expenses that only occur once a year, like any insurance premiums you pay annually or annual vacations. Subtract this total from your take-home pay and you'll know how much you can spend on your new home each month.

If you end up looking at homes that are outside your price range, you'll end up lusting after something you can't afford, which can put you in the dangerous position of trying to stretch beyond your means financially or cause you to feel unsatisfied with what you actually can afford. You may even learn that you can't afford the type or size of home that you desire and that you need to work on reducing your monthly expenses and/or increasing your income before you even start looking.

2. Skipping Mortgage Qualification
What you think you can afford and what the bank is willing to lend you may not match up, especially if you have poor credit or unstable income, so make sure to get pre-approved for a loan before placing an offer on a home. If you don't, you'll be wasting the seller's time, the seller's agent's time, and your agent's time if you sign a contract and then discover later that the bank won't lend you what you need, or that it's only willing to give you a mortgage that you find unacceptable.

Be aware that even if you have been pre-approved for a mortgage, your loan can fall through at the last minute if you do something to alter your credit score, like finance a car purchase. If you cause the deal to fall through, you may have to forfeit the several thousand dollars that you put up when you went under contract.

3. Failing to Consider Additional Expenses
Once you're a homeowner, you'll have additional expenses on top of your monthly payment. Unlike when you were a renter, you'll be responsible for paying property taxes, insuring your home against disasters and making any repairs the house needs (which will occasionally include expensive items like a new roof or a new furnace).

If you're interested in purchasing a condo, you'll have to pay maintenance costs monthly regardless of whether anything needs fixing because you'll be part of a homeowner's association, which collects a couple hundred dollars a month from the owners of each unit in the building in the form of condominium fees.

4. Being Too Picky
Go ahead and put everything you can think of on your new home wish list, but don't be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time homebuyers often have to compromise on something because their funds are limited. You may have to live on a busy street, accept outdated decor, make some repairs to the home, or forgo that extra bedroom. Of course, you can always choose to continue renting until you can afford everything on your list - you'll just have to decide how important it is for you to become a homeowner now rather than in a couple of years.

5. Lacking Vision
Even if you can't afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home otherwise meets your needs in terms of the big things that are difficult to change, such as location and size, don't let physical imperfections turn you away. Besides, doing home upgrades yourself, even when you have to hire a contractor, is often cheaper than paying the increased home value to a seller who has already done the work for you.

6. Being Swept Away
Minor upgrades and cosmetic fixes are inexpensive tricks are a seller's dream for playing on your emotions and eliciting a much higher price tag. Sellers may pay $2,000 for minimal upgrades or staging that you'll end up paying $40,000 for. If you're on a budget, look for homes whose full potential has yet to be realized. Also, first-time homebuyers should always look for a house they can add value to, as this ensures a bump in equity to help you up the property ladder.

7. Compromising on the Important Things
Don't get a two-bedroom home when you know you're planning to have kids and will want three bedrooms. By the same token, don't buy a condo just because it's cheaper when one of the main reasons you're over apartment life is because you hate sharing walls with neighbors. It's true that you'll probably have to make some compromises to be able to afford your first home, but don't make a compromise that will be a major strain.

8. Neglecting to Inspect
It's tempting to think that you're a homeowner the moment you go into escrow, but not so fast - before you close on the sale, you need to know what kind of shape the house is in. You don't want to get stuck with a money pit or with the headache of performing a lot of unexpected repairs. Keeping your feelings in check until you have a full picture of the house's physical condition and the soundness of your potential investment will help you avoid making a serious financial mistake.

9. Not Choosing to Hire an Agent or Using the Seller's Agent
Once you're seriously shopping for a home, don't walk into an open house without having an agent (or at least being prepared to throw out a name of someone you're supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties' best interests, but you can see how that might not work in your best interest if you start dealing with a seller's agent before contacting one of your own.

10. Not Thinking About the Future
It's impossible to perfectly predict the future of your chosen neighborhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.

Some questions you should ask about your prospective property include:

• What kind of development plans are in the works for your neighborhood in the future?
• Is your street likely to become a major street or a popular rush-hour shortcut?
• Will a highway be built in your backyard in five years?
• What are the zoning laws in your area?
• If there is a lot of undeveloped land? What is likely to get built there?
• Have home values in the neighborhood been declining?
• If you're happy with the answers to these questions, then your house's location can keep its rose-colored luster.

Conclusion
Buying a first home can seem stressful and overwhelming, and it isn't without its share of potential pitfalls. If you're aware of those issues ahead of time, you can protect yourself from costly mistakes and shop with confidence.

For many people, a home is the largest purchase they will ever make, but it need not be the most difficult.

If you are a first time buyer or know of one in the Indianapolis area, the Matt Borushko Team of Keller Williams Realty would love to help.

At least until you are sure it is a smart move. I write this the day after listing a home for sale. They paid extra every month on their home which is still a short sale. The worst part...they are also filing bankruptcy because their credit card debt is overwhelming. Implementing the right financial plan would probably have saved them from both disasters.

Before paying extra on your mortgage I would recommend you talk with a good financial planner to make sure this is the best strategy for building wealth. When I ask people why they do this I usually get one of two responses. Either they are trying to build equity or they are trying to save interest on the back end of the loan. Indeed mortgage amortization tables make this look like a great idea... shave years off your mortgage, etc.

Before you do this consider a few factors...

• Mortgage interest is the only tax deductible interest. For most Americans this is the single biggest write off. If you are in a 25% tax bracket and have a 6% interest rate on your loan, your net effective interest rate is close to 4%.
• You don't build wealth by paying extra. You  have more "equity" but you actually paid the extra amount directly. Basically by doing that you are paying into a savings account that is not paying you interest. Wealth is gained on a house through appreciation which happens independent of what you owe.
• New changes in the mortgage industry make it much harder to access the equity in your home. If your money is tied there you may not be able to get it out without selling.
• Before paying extra, make sure your higher interest loans are paid off. Credit cards, car loans, etc. If you think the amortization schedule on a mortgage is scary, you should see one on a 20% credit card!!
• Have your money working for you in more than one place. If you put your extra money in your home, it is only appreciating in one market segment. Be disciplined and pay the same amount to another investment. The advantages to this are many including easier access to that investment and being more protected in case of market changes.

I am not saying it is never a good idea to pay extra on your mortgage. There is great freedom in being debt free. What I am saying is consider your overall financial plan using the help of a professional financial advisor before taking such action. Your home is but one part of a sound financial plan.

For anyone in the Indianapolis area, I would be happy to provide you with the contact information for some incredible financial advisors!

If you are considering buying or selling a home in the Indianapolis area, the Borushko Team of Keller Williams Realty would love to help!

Want to get an idea of the value of your home?  Sign up for a free Market Snapshot which will tell you whats going on in the real estate market in your area!!

In the past, all agents were agents working for the sellers. The term caveat emptor or "buyer beware" was definitely an issue. A few years ago the laws changed and now agents can represent either buyers or sellers. If I am representing a buyer, I as an agent need to keep a buyers best interest in mind. I have a fiduciary responsibility to that buyer to do the best for them. 

Here are some of the many benefits of having a great agent represent you:

• Saves you time
• Help you discover and define your wants and needs
• Helps you find and select your dream home.
• Saves you money through powerful negotiation
• Helps provide data on the home, area, and comps so you make a good decision
• Information Resources: Names of lenders, title companies, handymen, painters, and inspectors
• Navigates you through the paperwork, inspection and closing processes.

Great agents can help you with homes listed on the market, for sale by owner homes, builders, and may even know of homes not yet listed. Put simply, as a buyer hiring an agent is free and will save you money, time, and stress! That sounds like a pretty good investment.

If you are considering buying a home in Indianapolis, Carmel, Noblesville, Fishers or lakefront property in Indiana, call or email the Matt Borushko Team of Keller Williams Realty to put our experts to work for you.

We apply this logic to most things. So why don't we apply that same knowledge when selecting a realtor? Too often one of the first questions a seller asks is "What do you charge" or "what is your rate?". I think sellers ask the wrong questions because they don't know which questions to ask. So here they are...The list of interview questions you should be asking your agent:

• Why should we select you as our Realtor?
• What areas do you specialize in?
• Are you a full time real estate agent?
• What is your average list to sale ratio?
• How long are your average days on the market.
• What are the market averages for this area. (Ask for proof)
• What is your strategy for marketing this property?
• How many people are on your team?
• Can we terminate our contract if you fail to perform?
• How and how often are you going to communicate with us?
• How will you help us get our home ready to sell?
• How will other agents schedule showings on your home?
• How often will we discuss market conditions?
• and most importantly How are you going to net us more money than other agents?

You should select the agent who:

• Will be HONEST with you about the market and show you supporting data.
• Will get your home SOLD
• Will net you the most amount of MONEY
• Will get your home sold QUICKLY

Great agents accomplish this in many ways. Properly pricing your home will generate interest in your home. They will help you stage your home so that it appeals to buyers. They employ a sound marketing strategy that will reach more buyers and agents increasing the number of showings. More showings to interested buyers increases demand for your home. Lastly, the best agents are great negotiators getting you more money and better selling terms!

If you are thinking about selling a home in Carmel, Fishers, Noblesville, or Indianapolis, call the Matt Borushko Team of Keller Williams Realty today!

OPEN HOUSE SATURDAY 8/21

1-3 PM 

Quality home on fantastic lot. This nicely maintained and updated 4 bedroom brick ranch sits on a sprawling corner homesite with mature trees. The quiet neighborhood is secluded and yet minutes from everything! Updates include a new roof, new windows, newer appliances, new carpet and paint, newer water heater, and updated bathroom. Other features include a side load oversized garage, storage shed, a brick hearth fireplace, and a Jack and Jill bath. Amazing Potential!

Fantastic  opportunity in North Harbour and on the golf course! Traditional Colonial with immaculate landscaping and many updates. This home boasts large rooms, a finished basement, a screened porch, and the soothing tranquility of golf course living. Many updates include completely renovated kitchen w/ maple cabinetry and ss appliances, updated bathrooms, new hardwoods, newer roof, new furnace and AC, new carpet, new windows, and more!  All of this and on a quiet cul-de-sac, too.  Hurry!

Wooded Yard, Deeded Dock in Geist

Elegant Geist custom home boasts beautiful touches-custom trim, solid doors, masonry fireplace, multilevel deck w/built-in seating & custom landscaping. Gourmet kitchen w/granite, jenn aire & cherry cabinets opens to spacious screened porch & overlooks wooded backyard & water view. Impressive room sizes throughout-dual master suites, walkout lower level, main floor office, GR w/cathedral ceiling. Offers two new heating/cooling systems, Pottery Barn colors & abundant storage. Deeded boat dock!

Appraised for 239K. Home offers finished basement and 3 car garage for storage, entertainment and flexibility. Immaculately clean, maintained, improved- new paint, flooring, light fixtures & faucets, plus XL patio & wrought iron fence.  Flexible loft, mstr & hall bath with double sink vanities. Finished basement offers many possibilities & includes surround sound and refrigerator. Professional landscaping draws compliments. Get out & enjoy the 8 miles of walking & biking trails, pool, playground, tennis courts – all just a minute away.  Hardwoods, elegant 2 story entry, open floor plan, all kitchen appliances stay - the list goes on.

For first time buyers this is free money. As long as you stay in your home for at least 3 years you don't have to pay it back at all. Most readers know this already so why am I posting?

If you wait until the last 2 weeks of April you will lose in a few ways...

1. You will be putting all control in the seller's hands. Think about it, if they know you are a first time buyer and you don't have time to buy another home, they can refuse to repair anything and you are in a very weak negotiating position. They know you can't buy another home and get the credit so they can play hardball. The only exception to this is if the sellers have been in their homes longer than 5 years and are also trying to take advantage of the credit.
2. Home prices will be higher. This weekend I represented buyers who got into bidding wars on 2 different occasions. There are many houses on the market but only a few that will meet your needs...don't wait for more competition as you may lose out on your home or pay a higher price.

The Matt Borushko Team of Keller Williams Realty is here to help you with your real estate needs in northern Indianapolis, Carmel, Fishers, Noblesville, and Westfield. We can help you anytime, having said that if you are a first time buyer, call quickly so you don't miss out on thousands of equity or worse yet, need to buy your second choice home!