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The Most Important Step Of The Buying Process

by The Schuman Team

 

 

Buyers are starting to get aggressive on making offers once they find a home they love, but many are not getting a firm pre-approval letter up front.  Forgetting this important step in the home buying process could end up preventing you from getting the home of your dreams.

 

GET PRE-APPROVED NOT PRE-QUALIFIED

When local real estate was in a downturn, the sense of urgency to get financing was not very high. Buyers figured they could take their time to find a home, and then they'd firm things up with their lender.  However, with the market starting to really heat up and inventories still low, buyers must change this lackadaisical mindset.

The problem isn't that buyers are totally forgetting to speak to a lender. They are simply getting pre-qualified instead of pre-approved. A simple conversation over the phone usually is not sufficient to grant a real "approval letter".   A lender will need to pull credit and collect specific documentation from you such as pay stubs, W-2's, or tax returns. It may not seem like a big deal but this extra step makes all the difference in the world.

I have seen cases when a buyer gets pre-qualified over the phone, and then ends up not qualifying once the lender verifies all pertinent information.

DO YOURSELF A FAVOR

In an active market, you never know when that special home will come on the market, and when it does, you will need to act quick. Waiting until after you find your home to get your financing in order may be too late.

Getting a solid pre-approval letter will allow you to move forward with confidence and may also help you stand out over another buyer should you get into a bidding war.

The difference between getting pre-approved and pre-qualified is merely time and a little effort on your part but is well worth it. In fact, it could ultimately determine whether or not you get the home.

Solon Real Estate - Year In Review 2012

by The Schuman Team

 

Solon Sold homes

The following is our 4th annual year in review for Solon Ohio real estate. Here, we will provide a comparison between this past year and 2011 and offer commentary.

 

ALL HOMES

 

Year          # of Homes Sold        Ave. Sales Price   Sales Price/List Price

 

2011                      222                    $291,449                 94.16%  

 

2012                      260                    $299,924                 94.03%

 

LUXURY HOMES ( sales price over $500,000 )

 

2011                       29                     $626,888                94.58%

 

2012                       39                    $640,749                92.95%

 

2012 FIRST HALF VS. SECOND HALF OF THE YEAR

 

FIRST HALF              107              $284,146               93.47%

 

SECOND HALF         159              $302,114               94.39%              

 Source: NEOHREX

 

COMMENTARY

This has been a very good year for the Solon real estate market. We saw a lot of positive signs that the worst is behind us and that things are getting better.  Below is a list of 5 important things that the above statistics tell us:

 

1.     More homes sold in 2012 vs. 2011

2.     Average sales price was higher this past year

3.     The market IMPROVED during the second half of 2012

4.     A well priced home will receive approximately 94% of asking price

5.     The luxury home market improved, meaning affluent buyers are feeling more confident about buying a luxury home

So, what can we take away from all of this? Improvement as a result of a slowly improving economy, low interest rates, and an increase in consumer confidence.

BUYERS AND SELLERS BOTH FEEL BETTER

The numbers indicate more buyers and sellers coming together and overcoming the numerous challenges presented by the market.  First time buyers are feeling a little more confident as are the local move-up buyers. Those looking to sell and buy a larger home are realizing that selling their existing home is now a realistic goal and no longer have as much fear.

Sellers have come to better understand that the major correction in the local real estate market has brought prices to where they were about 10 years ago. I'm certainly not indicating that sellers are happy about this, but they now have more realistic expectations regarding price. 

WE NEED MORE INVENTORY

The really good news for Solon home sellers is that the inventory of available homes is down about 25% from 2 years ago. This has helped create a much more balanced market and in some price points, things are actually learning a little toward the sellers. We have seen multiple offer situations ( bidding wars ) take place on a regular basis, especially in the $200,000-$300,000 price point.

The real estate market should continue to recover in 2013.

                               

Displaying blog entries 1-2 of 2

Contact Information

The Schuman Team
HOWARD HANNA REAL ESTATE SERVICES
3550 Lander Road
Pepper Pike OH 44122
Dan: 216-346-3235
Amy: 216-403-9189
Fax: 216-456-2333