General Area in Zionsville>Question Details

Annette, Home Buyer in Indianapolis, IN

Why are so many houses in the Royal Run area of Zionsville for sale?

Asked by Annette, Indianapolis, IN Wed Feb 18, 2009

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Marita Topmiller’s answer
Hi Annette, Joe is of course correct in his comments about builders' financing,
especially as it pertained to first time buyers. We Realtors have watched with
alarm as whole streets in predominantly first time buyer neighborhoods fell
into disrepair and neglect due to large numbers of foreclosures. Royal Run,
however, has a great many homes that were geared to second or third time buyers. By my count,
in 2006, 5 homes were in short sale or the foreclosure process when they sold. In 2007, 3 homes
were in short sale or foreclosure process when they sold. In 2008, 5 homes were in foreclosure when
they sold. In 2009, there are 5 homes in preforeclosure, or short sale status and 1 bank owned. I think
it is a good looking neighborhood with great schools, great location, play areas for children and some great deals to be had. The foreclosures there seem to me to be more reflective of the times than the use of subprime instruments, though I do not doubt some of the builders there used them.

Every neighborhood has some areas less desirable than others, however, and Royal Run is no different.
I would not suggest buying a home close to 65. The homes within earshot of 65 sit on the market longer
than other areas of the neighborhood.

My advice: 1. Choose a Realtor. 2. Make a list of those qualities you desire in a home. 3. Have your
Realtor send you all the homes that have those qualities. 4. Go out together and look at the homes.
Take notes of the things you like/don't like about those homes and the neighborhoods. Choose your
favorite homes, so your Realtor can help you do your due diligence. Stay away from neighborhoods
that are falling apart. I would like to help you.

Thanks,
Marita Topmiller
Assoc Broker
Century 21 Realty Group
marita@maritatopmiller.com
1 vote Thank Flag Link Wed Feb 18, 2009
Royal Run seems to frequently have a large inventory of available homes.

I think that there are a two primary reasons for this phenomenon.

1. Royal Run is somewhat of a transitional neighborhood. Many buyers move into their first home here because reasonably decent newer housing at a good price in a favorable school district is otherwise challenging to find. One can find 4 bedrooms, great Zionsville schools, easy access to the highway to get downtown...all at a relatively reasonable price.

2. Unfortunately, many of the builders who originally built in Royal Run were also financing their homes using "sub prime" instruments. I'm sure you've been hearing the news about that part of the mortgage market.

Builders often reeled in buyers based on an attractive monthly payment offering. Unfortunately, many buyers weren't well enough informed to understand the full magnitude of the mortgage they signed. That payment often didn't include fully assessed property taxes, and often had an adjustable rate.

Consequently, we've seen a lot of foreclosure activity in Royal Run as the result of that predatory lending. Those foreclosures have given some folks an unsure feeling about the neighborhood.

The terrific news for you if you're buying?

It's an incredible time to be aggressive about your offering price and terms. Having a qualified REALTOR on your side will certainly work in your favor. I encourage you to engage someone you trust sooner than later in your process.

Good luck!

Joe Shoemaker
Principal Broker
MacDuff Realty Group
0 votes Thank Flag Link Wed Feb 18, 2009
Dear Annette, There are 20 homes available on the market in Royal Run,
Zionsville right now. However, tax records reveal 657 homes in Royal Run.
That means just short of 3% of the homes in the neighborhood are for sale
right now. As a comparison, just think, a neighborhood of 100 homes might easily have 3 on the market
and it would not seem excessive. Another giant neighborhood is Crooked Creek in Pike Twnsp, Indpls.
There are 44 homes on the market right now in that neighborhood. Also keep in mind that Royal Run
has a large percentage of young, mobile professionals. Many young professionals move for the sake
of their jobs at more regular intervals than many older home owners. I hope that answers your question.
The average price per square foot in Royal Run active listings is $88. The average price per square foot
sold in Royal Run last year was $90. The average price per square foot sold in Royal Run in 2007 was
$87. If you would like a Realtor to assist you by showing you homes and evaluating neighborhoods, I
would be happy to help you. My number is 513-4652 My Regards, Marita
0 votes Thank Flag Link Wed Feb 18, 2009
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