By By JESSICA SIEFF / Niles Daily Star
NILES – For-sale signs still dot the front yards of many homes throughout the Niles-Buchanan area. And all eyes seem to be on the housing market these days – as reports show a slump in home buying and selling across the nation.
But the crisis may not necessarily be what it seems.
Figures by the Board of Realtors for the Niles-Buchanan and Galien area for June show a decrease in units sold and in volume from the previous year. Dollars fell 34 percent from over $7 million in June of 2007 to $4.7 million last month. There was a 27 percent drop in units sold with 46 units sold last month – down from 63 in 2007. Average sale prices are down 9 percent.
Still, some believe that now is a good time to buy and sell in the real estate industry. And they think the negative media is keeping people from taking advantage of a time where prices are flexible and options are geared toward smart, safe buying.
When asked if the market is really as bad as it seems, Jan Luke, a Realtor with Integrity Real Estate Professionals of 1441 Oak St. in Niles said "I believe that's a misconception.
"I think for the buyers it's a good time, because the sellers are more negotiable," she added. "And they need to be."
Luke has been in the real estate business for 22 years. Her advice to sellers is to be aware of the competition within the market. "They're going to have to compete against more property," she said. She says those selling their homes should ask themselves what makes their home stand out when compared to another that might be up for sale right next door. "You have to work harder to make sure it's more presentable than the house down the street."
Some things homeowners can do: give a fresh coat of paint to the exterior as well as the interior of the home and update the landscaping such as with fresh flowers and plants.
If potential buyers are putting their plans on hold because of less than flattering news reports, they may want to reconsider. If it is in fact a buyer's market these days, then buyers are advised to take their time and buy smart. Because the opportunities seem to be waiting for them.
Buyers in the past may have been able to get themselves into homes that they couldn't necessarily afford, explains Peggy Roberts, vice president, mortgage and loan officer with Chemical Bank in Niles.
Now, with the economy in its current state of struggle and flux, "I think you're finding that lenders are being … more conservative," Roberts said. "Qualifications for a customer are very, very strict…"
Such words are not meant to scare away. Rather, according to Roberts, lenders seem to be approaching a customer's desire to buy with a level of protection for the buyer. "We're doing our job to make sure a customer can afford a home," she said.
Luke said that buyers need to be more aware of exactly what they're getting through their lenders and suggests that customers go with local banks. Some customers have found themselves in trouble because they weren't fully aware of how much money was being allocated to closing and other costs.
"I think it makes a difference which lenders they use," she said. "I think they should shop around and ask other people for guidance."
One thing Luke said a buyer should certainly do is get a Truth and Lending Statement from their lender, look it over closely and compare it to other lenders. "Do comparison shopping," she said. "That's the wise thing to do."
And customers thinking about buying should be prepared.
"People are going to have to do a lot of cleaning up on credit," said Roberts. Making sure their personal finances are in order will help them when it comes to getting qualified for financing. It may take a little extra work – but the opportunities for making a good purchase on a home are still there. "There's still specialty programs out there," Roberts said.
Customers can talk to their lenders to see if they qualify for "federal grant loans," Roberts said. And banks like Chemical Bank offer other products to help with gearing up to buy like a specialty savings account that customers can use to put away money especially for a down payment and/or closing costs.
"I think banks are working with the clients more," she said. "They're listening to what (their) issues are … We're trying to educate the community. The rates are still great."
Roberts has been with the bank for 24 years – before it was Chemical Bank. She remembers when rates were at 12 and 13 percent. Those days, she says, may not be seen again. But that doesn't mean that the general opinion should be that now is not the time to buy a home. Buyers of the past, she said, "wanted top dollar" and were getting into loans for homes that they wouldn't have qualified for had the rate changed.
If Luke is any indication of other realtors across the area – they are still rather optimistic about the homes available to customers looking to buy – and willing to help in any way they can.
Integrity is holding a buyer's seminar Saturday, July 19 from 10 a.m. to 11 a.m. And Luke said that she would advise a potential buyer to look at homes "that they are able to buy."
It would seem that buyers buying smart is about more than just a good deal on a home – but a new tactic in gaining on the negative numbers. In a struggling economy – it may just come down to a test of wills. The will to shift focus from extravagant buying to economical buying.
"You don't want to live for your house payment," said Roberts. "If you're going to be living to make your house payment – life's too short for that."