The Dreaded Pre-Approval

I'm really not sure how long this has been going on. Maybe, I have just become more cognizant of it lately. Maybe I'm the only one who notices. Maybe I'm overreacting. Maybe...

In the last few weeks, I have been appalled by potential buyers' unwillingness to get pre-approved before they look at homes. Most of the buyers I have spoken with are first time buyers and I expect a little resistance since they are new to the process. I have also spoken to home owners looking to possibly move up and they too look at me like I am asking them to donate a kidney!

If you are interested in buying a home, if you are thinking of buying a home, if you may eventually buy a home...GET PRE-APPROVED!

Yes, you will need to speak to a bank or mortgage broker. Yes, you will have to disclose some personal financial information. Yes, you will have to have your credit checked and yes, sometimes, you will have to face some harsh realities. At least you will still have your kidney.

BETTER NOW THAT LATER!

Let's face it, no one said buying a home is easy. There is work involved, even for you. It is better for everyone involved to find out where you stand upfront.

Do you want to spend your free time and weekends looking at homes for months only to fall in love with a home and not be able to get a loan?

Do you want to have your realtor spend hours looking through and previewing listings for you only to find out you can not get a loan?

Before my epiphany, I have had clients in the past look at 20 homes only to find out they could get a loan but for much less than the homes we spent hours touring.

Put yourself in the seller's shoes. You have your home listed, you're moving out of the area for a new job, a buyer comes through, puts in an offer and you accept. You're overwhelmed with joy and you start planning your move only to find out 2 days later they can't get a loan.

Sounds crazy but it happens!

I know it's work, it takes time getting things together but why would you knot want to put yourself in the best negotiating position! Pre-approved buyers are taken much more seriously and have a better chance of getting the home they love!

If you are looking for a home and have not been pre-approved, I would love to hear why. What are your concerns? Fears? Thoughts?

Northwest Indiana July Housing Stats

Real Estate is local. Values are determined by local market trends and demands. Too often I speak with buyers and sellers who focus on the national picture instead of what is happening in their own back yard. After doing some research, I can see why buyers and sellers focus on the national picture. That is all they see. At best they may get housing stats from their state and even these are not a good gauge for your local market.

Here are some housing stats from some Northwest Indiana markets. While the housing picture is not all rosy, there are some encouraging signs. Crown Point, Schererville and Valparasio all have year to date median sale prices that are above last year! That's good news!

Don't see your city or town. Call, 219-306-0333, or email me, steve@stevejamrok.com, and I will be happy to discuss your local market!


Crown Point-(DOM=Days on Market)

01/01/10-07/31/10= 236 Homes sold/ Median Sale Price- $161,500/ Avg. DOM- 119

01/01/11-07/31/11=207 Homes Sold/ Median sales Price-$170,000/ Avg. DOM- 130

07/01/11-07/31/11= 30 Homes Sold/ Median Sales Price-$159,950/ Avg. DOM- 146

Saint John-

01/01/10-07/31/10= 77 Homes Sold/ MSP-$240,000/ Avg DOM- 124

01/01/11-07/31/11= 94 Homes Sold/ MSP- $235,971/ Avg DOM- 120

07/01/11-07-31-11 = 16 Homes Sold/ MSP-$228,000/ Avg DOM- 116

Dyer-

01/01/10-07/31/10= 100 Homes Sold/ MSP- $186,500/ Avg. DOM- 108

01/01/11-07/31/11= 107 Homes Sold/MSP- $178,084/ Avg DOM- 124

07/01/11-07/31/11= 14 Homes Sold/ MSP-$180,042/ Avg DOM- 106

Schererville-

01/01/10- 07/31/10- 176 Homes Sold/ MSP- $180,500/ Avg DOM- 108

01/01/11-07-31/11- 155 Homes Sold/ MSP- $200,000/ Avg DOM- 137

07/01/11-07/31/11- 23 Homes Sold/ MSP- $205,000/ Avg DOM- 118

Valparaiso-

01/01/10-07/31/10= 314 Homes Sold/ MSP- $166,250/ Avg DOM- 119

01/01/11-7/31/11= 301 Homes Sold/ MSP-$167,000/ Avg DOM- 113

07/01/11-07/31/11= 68 Homes Sold/ MSP- $189,950/ Avg DOM- 109

Cedar Lake-

01/01/10-07/31/10=93 Homes Sold/ MSP- $145,750/ Avg DOM- 134

01/01/11-07/31/1= 85 Homes Sold/ MSP-$143,000/ Avg DOM- 122

07/01/11-07/31/11=5 Homes Sold/ MSP- $140,000/ Avg DOM- 169


Demotte-

01/01/10-07/31/10=59 Homes Sold/ MSP- $144,500/ Avg DOM-149

01/01/11-07/31/11=53 Homes Sold/ MSP-$139,900/ Avg DOM- 113

07/01/11-07/31/11=8 Homes Sold/ MSP- $162,500/ Avg DOM- 156

Merrillville-

01/01/10-07/31/10= 232 Homes Sold/ MSP- $109,500/ Avg DOM- 99

01/01/11-07/31/11= 210 Homes Sold/ MSP- $94,700/ Avg DOM- 105

07/01/11-07/31/11= 38 Homes Sold/ MSP- $109,000/ Avg DOM- 89