Lower End Priced Homes Selling in Northwest Indiana

By
Real Estate Agent with Willems Realtors, Principal Broker

Whenever someone asks what I do for a living and I say I'm a REALTOR they always ask isn't the market slow.  I tell them that I have actually been busier than I ever have been.  If you know the price range that most buyers are looking in then you can stay busy and have money coming in.

In my area Northwest Indiana the homes under $200,000 are moving.  Especially under $150,000.  I know that isn't a whole lot of commission but when you can close a few a month then it's not so bad.  I figure I sell thise first time home buyers a home they will eventually want to buy a larger home.  Plus some of their friends might me looking for homes soon.  Great way to get referrals. 

My last three deals were first time home buyers.  Knowing that this is their first big purchase.  I try to go over with them the advantages of owning a home.  The deductions on income tax.  That the equity that they build while owning a home.  I also make sure that I call them about 5 weeks after the closing to remind them to file their property tax exemptions.  Most people forget to do that. 

I actually had a client lose their house because the taxes went up and they couldn't pay the payment increase.  I felt bad.  I even tried to sell their home using a short sale but the lender wouldn't go for it.  Now it has expired on the market three times and is listed for less than the short sale offer was. 

I know a lot of the  top producers in my area are hurting.  I know that some of them only like to sell higher end home $300,000+ .  That could be why they are hurting. 

There is not a lot of buyers in that price range.  Especially those that bought their homes in the last two years are upside down and would take a loss selling their home in this  market.  But what if they need to relocate for their job what do they do.  A division of the real estate company I work for has helped those owners find tenants to rent their home.  We have been pretty busy with that.  We have more tenants wanting homes then we have home right now.  We are helping them find homes to rent.

Comments (6)

Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Thanks for the info.

Seems like most of the business I get is in two areas. Under 150K and over 600K. Not much middle.

Good post

Apr 24, 2008 08:01 AM
Ronda Myers-Waters
Willems Realtors, Principal Broker - Chesterton, IN

Tony,

Thanks for the comment.  I have a couple of buyers looking over $150,000 but so far they are pretty picky on the home that they want.

 

Apr 24, 2008 02:42 PM
A&M Mortgage Group: Larry Penilla
A&M Mortgage Group - Merrillville, IN
Northwest Indiana Mortgages - Home Loans

Hi Rhonda,

Nice post. I agree totally. First Time Home Buyers are said to consistantly make up 40% of the market. There will always be first time buyers. And there will always be special programs that help first time home buyers. Are you familiar with the IHCDA program with a rate of 5.125% 30 year fixed 97 or less LTV conventional, FHA (up to 100% LTV with Down Payment Assistance), or VA? If not, I'd love to tell you about it. It really can't be beaten. You can use it as a competitive advantage as I do on AR...(see The Best Damn First Time Home Buyer Program in Northwest Indiana) and @ www.LarryPenilla.com).

All good wishes!

Larry Penilla

Senior Home Loan Consultant

First Mortgage Corporation

 

Apr 24, 2008 05:57 PM
Ronda Myers-Waters
Willems Realtors, Principal Broker - Chesterton, IN

Larry,

Thanks for the comment.  I'll take a look at the programs.  If I have another first time home buyer I'll give you a call.

 

Apr 25, 2008 01:43 AM
Linda Sanderson
Coldwell Banker Solano Pacific - Benicia, CA

Ronda - Glad to hear you are staying busy in this crazy market.  We have so many great deals out there for these buyers,it's amazing.  I have been writing a lot of offers on bank owned properties that are priced so low that they are receiving multiple offers left and right.  I'm happy to see that because I think it will help to even out the market somewhat.  We are seeing a marked improvement in the number of properties selling since the first of the year.  Have a great year!

May 24, 2008 11:17 AM
Scott Swinford
Hancock Mortgage Partners - Crown Point, IN

Ronda,

What a crazy market we are in right now. I think real estate is literally on sale here in Porter County, but a lot of potential buyers are afraid to take the plunge because of the mortgage market. It's a constantly moving target.

While the downpayment assistance programs are going away for now, there is the USDA RD loans for your buyers in certain areas south of Valparaiso. If you have not looked into those, they may be just what your buyers need... they can finance > 100% still.

It's interesting that your company is helping people get into rental homes. There is a big market right now for investors to pick up properties to market to the rent-to-own crowd. I have been involved with a couple investors who place a person with less-than-perfect credit into a home and sign them up for our credit restoration program. Many of them are then able to purchase within 12-24 months (sometimes much sooner), making it a win-win-win situation for investor, client and loan originator.

Just thought I'd share a few things that are working now. If I can be of any assistance, please let me know.

Scott

 

Scott Swinford

Mortgage Professional Group, Inc.

Your Northwest Indiana Loan Guy

Credit problems holding you back? We can help.

Sep 16, 2008 05:02 PM