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  Do I Need to Sign a Buyer-Broker Agreement When Buying a Home in St. Joseph or Elkhart County, Indiana? Buying a Home in Indiana If you're preparing to buy a home in St. Joseph or Elkhart County and wondering about the current process for working with a real estate agent (Realtor), here's what you need to know. Starting mid-July 2024, a new policy from the National Association of Realtors® (NAR) requires agents to secure a signed buyer-broker agreement before assisting buyers. This policy ensures: Clarity: Clearly defining the agent-buyer relationship and outlining agent fees. Commitment: Prohibiting agents from showing homes without an official agreement. Transparency: Setting clear expectations for services and compensation. While these stipulations have already been standard practice in many places, including Indiana, this nationwide policy strengthens transparency and ensures that all parties are on the same page from the outset. What Is a Buyer-Broker Agreement? A Buyer-Broker Agreement is a contract between a homebuyer and a real estate agent that outlines the agent’s duties, compensation, and the buyer’s obligations. Here’s a closer look at its key elements: Establishing a Working RelationshipSigning this agreement formalizes your partnership with your agent. It legally obligates the agent to represent your best interests during the home-buying process — from negotiations to market analysis and paperwork guidance. Seeking more information about buying or selling in Indiana? Check out these helpful resources: When is the best time to sell a home in South Bend? Top 10 Reasons a Home Sale Falls Apart Will I pay Capital Gains on my Home Sale? 10 Essential Documents for a Smooth Home-Buying Journey Search Today's Hottest New Listings! Compensation ClarityThis agreement specifies how your agent will be compensated, typically through the seller’s commission, meaning no direct cost to you. However, in cases where the seller doesn’t offer a commission, the agreement may require the buyer to pay. Reviewing this section carefully helps you understand any potential financial obligations. ExclusivityMost buyer-broker agreements are exclusive, meaning you agree to work solely with that agent for a specified time. This benefits both parties — your agent commits fully to your search, and you gain dedicated service. Non-exclusive agreements exist but are rare. Scope of RepresentationThe agreement outlines the agent’s duties, such as finding properties, negotiating offers, and providing market advice. It also specifies your responsibilities, like maintaining communication and honoring scheduled showings. Cancellation TermsThe agreement includes cancellation terms, ensuring flexibility if the partnership doesn’t work out. These terms protect both parties and ensure you can terminate the contract under specific conditions. The New NAR Policy and What It Means for You The new NAR policy introduces significant changes for buyer-agent relationships. Agents must have a signed buyer-broker agreement before showing properties, ensuring transparency and clear communication about services and compensation. Another notable update prohibits the display of buyer-broker compensation on Multiple Listing Service (MLS) listings. Instead, compensation is negotiated directly between the buyer, seller, and their agents or arranged through seller-offered concessions like closing cost support. These changes reflect a broader industry shift toward transparency, consumer choice, and clarity in real estate transactions. Buying a home in St. Joseph or Elkhart County is a big decision, and understanding your rights and responsibilities as a buyer is crucial. For more on how the NAR settlement impacts homebuyers and sellers, visit their official page. Tim VicsikRE/MAX 100www.ND-Condos.comTim@TimVicsik.com (574) 329-9587

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Your Home Sale and Capital Gains in Indiana What is capital gains tax?  Let's start with the basics: It's a tax on profits from selling assets like stock or real estate. When you sell these for more than you paid, the IRS taxes the gain. You can find more information on capital gains from the IRS website. In Indiana real estate, capital gains are calculated by taking the final sale price and deducting the original cost. However, the tax on that gain has additional considerations: How long you owned the house Any fees you've paid — escrow, recording and appraisal fees, brokers' commissions (common in Indiana real estate transactions) Your federal income tax bracket (See the IRS tax brackets) Your marital status If you owned your house for less than a year, the capital gains are short-term and taxed at your ordinary income rate (like wages). If you owned it for more than a year, they're long-term. In 2024, long-term capital gains rates are 0%, 15%, or 20%, depending on your federal income. You can find the most up-to-date information on long-term capital gains rates on the IRS website. These are typically lower than ordinary income tax rates. Indiana is a state that has a state income tax, so you will also pay state taxes on your capital gains. You can find more information about Indiana's state income tax from the Indiana Department of Revenue. Exclusions Since most Hoosiers own their homes for more than a year, long-term capital gains rates usually apply. You might avoid some tax because real estate gains have different rules than investment capital gains. These rules apply only to your primary residence; if you sold a second property (investment, vacation, or rental) that wasn't your primary residence, you can't use these exclusions. For most of these exemptions, you must have owned and lived in the house for two of the five years before the sale: You might defer capital gains if, after selling, you reinvest the profits into a new property within 180 days. This is often referred to as a 1031 exchange; you can find more information on 1031 exchanges on the IRS website [invalid URL removed]. You might use a capital gains tax exclusion for your primary residence once every two years. Exemptions are $250,000 if single and $500,000 for couples filing jointly. (Some widowed individuals may qualify for the $500,000 exemption.) See IRS Publication 523, Selling Your Home for details. Itemized construction expenses can be added to your home's cost basis, reducing your tax liability. Improvements must be major—adding a bedroom, renovating a kitchen (like updating that outdated 70s kitchen in your Broad Ripple bungalow), installing a roof—and documented; estimates won't work. (See IRS Publication 523, Selling Your Home for more examples.) Selling costs like real estate agent fees (common when selling in Indiana's competitive market) and closing costs can be deducted from the sale proceeds to reduce your capital gain. You might qualify for a partial exclusion if you sold due to unforeseen circumstances—moving for a job at Cummins in Columbus, a health issue, divorce, a spouse's death, or a natural disaster (like flooding along the Wabash River). You may also qualify if you entered uniformed, foreign, or intelligence services. Again, IRS Publication 523 provides details on these exceptions. Many Indiana homeowners have seen significant capital gains since purchasing their homes, especially in areas like Indianapolis, Bloomington, and Fort Wayne. You can manage the tax liability and keep more profit. Consult an Indiana tax professional to understand all the tax implications of selling your home in Indiana. They'll be familiar with both federal and Indiana state tax laws. Tim VicsikRE/MAX 100www.ND-Condos.comTim@TimVicsik.com (574) 329-9587 

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Is Winter a good time to buy in St Joseph and Elkhart County Indiana? While spring and summer might be the traditional times to buy a house, there are some hidden gems to be found in the colder months here in St. Joseph and Elkhart Counties. Here's why winter could be the perfect time to find your dream home: 1. Local Steals and Savings Nationally, home prices dip 3-5% in winter, but in our local market, you might find even better deals. Homes that haven't sold since the summer months could see sellers more motivated to close before the year ends. This translates to potential savings for you! Pro Tip: Use these savings to explore local shops and restaurants in your new neighborhood. Check out the unique boutiques in downtown South Bend or grab a bite at one of the many delicious spots along the Elkhart Riverwalk. 2. Fewer Bidding Wars, More Breathing Room Winter sees less competition from other buyers in St. Joseph and Elkhart Counties. This means you'll likely have more time to consider each property and negotiate a better deal. You might even snag a home at (or even below!) the asking price. 3. Unveiling the True Colors: Winter's Hidden Home Inspection The cold weather acts as a natural home inspection here in Indiana. You'll see how well windows keep out the chill, if the heating system is efficient, and how the roof handles snow accumulation. While potential repairs are never ideal, it's better to discover them now than after you've moved in. This upfront knowledge also allows you to negotiate repairs with the seller or adjust your offer accordingly. Remember, a home inspection can save you thousands in the long run! 4. Motivated Sellers and Faster Closings (Maybe Ice Skating, Too!) Sellers listing in winter often have a strong desire to close quickly. This could be due to job relocations, financial changes, or even wanting to move before the next snowstorm! The National Association of Realtors (NAR) found homes sold in December and January in our region typically close 10% faster than peak months. Faster closings mean less time waiting and more time settling into your new home. Plus, with the holidays behind you, winter offers a unique opportunity to explore local traditions like ice skating at the Morris Civic in South Bend or enjoying the winter lights at the Elkhart Environmental Center. 5. More Time with Your Local Realtor With a slower market, your Realtor can dedicate more personalized attention to you. They'll have more time to help you find the perfect home, understand local market trends, and guide you through the negotiation process. This personalized service can make a big difference in your home-buying experience. Bonus Tip: Winter can also mean lower moving costs! Moving companies often offer discounts in the off-season. Ready to Find Your Dream Home in St. Joseph or Elkhart County? Don't let the cold weather hold you back. Winter can be a fantastic time to buy a home in our area. With potentially lower prices, less competition, and motivated sellers, you might just find the perfect place to call your own. Remember, buying a home is a big decision. Consider your personal goals and financial situation when making your choice. But hey, if winter does bring some snowy days, you'll already be in the perfect place to cozy up by the fireplace in your new home!   Tim VicsikRE/MAX 100www.ND-Condos.comTim@TimVicsik.com (574) 329-9587

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