“Why” you may ask? After all, the headlines say the housing market is down and out, with defaults rising at an alarming rate, and mortgage markets so frozen that buyers can’t get a home loan at any price.

            What buyers need to realize is that housing markets, like all markets, inevitably have their ups and downs. And homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.

            Despite the turmoil in mortgage lending, if you have good credit, a job and steady income, you will find there is still plenty of mortgage credit to be had at good rates. For well-qualified buyers, rates are running at near historical lows.

 Homeownership’s Real Value

            Here are a few examples of why, dollar for dollar, homeownership is a solid stepping stone to a future of financial security and the single largest creator of wealth for many Americans.

            Over the long-term real estate has consistently appreciated, even through periodic adjustments in local markets in response to economic conditions. On a national level, home appreciation has historically increased 5-6 percent annually, report economists at the National Association of Home Builders.

            Five percent may not seem much at first, but here’s an example that will put it into perspective: Say you put 10 percent down on a $200,000 house, for an investment of $20,000. At a 5 percent annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment of $20,000 is an extraordinary 50 percent annual return.

            In contrast, putting that $20,000 down payment into the stock market and getting a 5 percent gain would only yield a $1,000 profit.

 Compared to Stocks

Looking at it another way, over a longer period of time, if someone put $10,000 into the stock market in 1996, the average annual S&P return would make that investment worth $21,500 today—an increase of $11,500. The median home price in 1996 was $140,000.

Today, that same home would have gained nearly $100,000 in value. Don’t miss out on the benefits of homeownership.

Tri Town Group of Keller Williams (219) 488.0299  Mark@MarkBorst.com

• Why do students spend an hour fighting about their homework instead of ten minutes just doing it?
• Why do customers fall for slick come ons or fancy financing instead of buying what's best for them?
• Why is it so easy to fool voters with patently false accusations?
• Why do some people turn a routine traffic stop into a life-endangering argument with the cop?
• Why can't worthy charities (with dreary stories) raise more money than they do?

• Cash is king. Having enough money in the bank to pay closing costs that are typically an additional 2 percent to 3 percent of the price of the home is necessary.

• Location. Location, location. As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.

• Compare. Besides just looking at the comps, buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.

• Think long haul. It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.

• Have your own agent. Believing they might get a better deal or out of ignorance many buyers use the developers sales agent to represent them. New construction buyers should research what a dual agent can and can't do under their state real estate license laws. Most states require written acceptance of dual-agency by both parties. All homebuyers should be represented by an agent who has a fiduciary responsibility to them. Buyers shouldn't forget that most developers require that your agent must accompany you the first time you visit a sales center.
• Ask how much is this home as we see it. Models can be filled with every upgrade the developer offers as an example for buyers. Buyers should ask freely how much the model costs as they see it. Typically this cost will vary dramatically from advertised starting prices for a development.
• Pick the right developer. Working with a developer is like a short-term marriage. Ask for references from the developers sales agents. Do your own investigation of the developers previous projects, length in business and complaints filed with business bureaus.
• Consider resale characteristics.  The allure of being the first to occupy a home sometimes clouds a secondary location or poor craftsmanship. Consider a resale home in a primary location before signing on the line just because it's new construction.
• Question percent of project sold. Developers love to promote the sell-through of projects. Inquire how much of the percent sold are reservations (dating the project) versus contracts (engaged to the project). Some reservations don't go to contract because of a change of heart, financial concerns or occupancy timelines.
• Have an attorney review all contracts.  Developers contracts favor the developer and are different from standard local real estate board approved contracts. Retain a real estate attorney to review all contracts. There is little wiggle-room once you sign a developers contract, and they don't like home sale contingencies.
• Investigate property taxes independently. Property taxes can be a financial surprise you weren't expecting with the purchase of a home. Because tax assessors haven't valued a home or project, developers can underestimate how much the property taxes will be. Complete your own due diligence and call the local taxing authority to find out the worst-case scenario.
• Perform a home inspection. Never skip or waive the right to a inspection, the benefits far out weigh the costs and could save you numerous headaches and expenses later. New construction is not immune from defects and lackluster workmanship. Hire a professional, not Uncle Bert. Perform the inspection at least seven days prior to closing.
• Inquire about investor purchased units. In the post-real-estate-bubble-world  many developer contracts restrict purchase of units by speculators to flip at completion. Look for clauses in contracts that require purchasers of units to owner-occupy the first 12 months after closing. Ask sales agents what the percentage of owner occupancy is for the project.
• Get a certificate of occupancy. Local municipalities issue a certificate of occupancy after a unit has passed all building code inspections. Most mortgage lenders require a certificate of occupancy before they will close on a loan. If you are paying cash, verify prior to closing that the developer will deliver you a certificate.
• Understand why developers request upgrades paid for in advance. Experience has taught developers that some buyers will not purchase the unit which they have specified the floor-coverings, countertops and kitchen cabinets, that have been installed by the developer. Other buyers will want to select their own finishes and a unit that has preselected finishes by a terminated buyer is a marketing problem for developers. Plan on paying upfront for all upgrades and changes you make to a unit, and if you decide to walk from the project once you have paid for upgrades, expect a fight from the developer if you want a refund on installed changes and upgrades.
• Require your deposits to go into an escrow account. Require all deposits and payments you make go into an escrow account, not the developers business account. Research state brokerage laws to discover what regulations developers must follow with buyers funds. If disputes arise it is easier to receive refunds from a neutral third-party or escrow agent than from a developer.
• Request copies of blueprints, floor plans and surveys. It's easy to forget to get clean copies of blueprints and floor plans of your new home with all the activity and decisions during the construction process. In the future when you want to make changes or sell, having the footprint of your home will save you expense and time. Make sure the developer provides you with an updated survey, showing just your parcel. Verify that your new home also has it's own parcel identification number issued by taxing authorities.
• Research warranties on structure, finishes and appliances. Developers typically offer five or ten year warranties on structural elements of a home and rely on manufacturers warranties for appliances, furnaces, windows and overhead garage doors. Beware of one-year warranties on structural elements.

• Forget to ask for holdbacks on unfinished work. Weather or material supply problems can interrupt completion of a home. If some items aren't necessary for occupancy the developer will want to close on your home. Make sure any substantial items or features that are not completed in your new home, have designated funds set aside for their installation or completion. Request these funds be held back and deposited in an escrow account at closing.
• Omit final written punch lists. You should have a final walk-through at least three days before closing on your new home. Create a punch list of all uncompleted or unfinished items. Punch lists can also call attention to items that need to be repainted or need additional attention. Both the developer and the buyers should sign the final punch list in agreement. Developers should complete punch lists within 30 days of closing.
• Tune out during construction process. Family, work or distance can shift your focus away from closely monitoring the construction and completion of your new home. Proactive buyers can catch design mistakes or irregular materials by visiting the job site on a regular basis. For insurance purposes some developers limit access to construction sites. Stipulate in purchase contracts the timing of all visits during construction of your new home.
• Be fooled by low assessments. Developers can use artificially low monthly homeowner assessments in new construction marketing materials. Plan on at least a twenty-five percent increase in assessments the first year after the developer delivers the association to the homeowners.
• Overlook costs between standard and upgraded features. There can be a large difference in quality and useful life spans between builder grade and upgraded finishes and fixtures. It could be worth the additional expense to install better carpet, cabinets and faucets. Cross-check builder prices for upgrades at your local home center.
• Ignore developer incentives as a signal of slow sales. Free condominium assessments, stainless appliances and plasma tvs are thrown in to induce buyers to write contracts to purchase. What many buyers think are a freebie are actually signals that a development is slow to sell from increased competition of a lack of buyers. Incentives are a band-aid for a languishing development.
• Be surprised when developer holds firm on pricing. Developers of popular projects don't typically negotiate on unit prices. However sometimes a developer will throw in upgraded appliances or hardwood floors in place of standard carpet. When a developer doesn't move on prices it is because they have a investment formula for the project, which is typically costs plus twenty percent profit.
• Disregard risks of buying pre-construction. Pre-construction pricing can attract value-driven buyers. There is some risk entering into a project before it has started. Verify that the developer has received a green light from local building authorities and has a proven track record of timely completion in the community.
• Postpone discovering costs of construction loans. Variables beyond a developers control can prolong the completion of your home. Have contingency plans for cost overruns, temporary housing and bridge loans. Investigate rate-lock expiration dates on mortgages, construction or temporary loans.

Although the news media would want to say different, Lake County Indiana is in a balanced market overall. With only about an 8 month absorption rate for the entire market, this is a great time to buy or sell. The current interest rates are still at all time lows, so if your home is priced right it will sell and sell quickly. Trying to choose a new home?, well there are plenty out there so you can be discriminating, without settling on quality or overpaying for what you want.

Not only is the supply and demand side of Real Estate in Lake County Indiana great but the appreciation on your asset as well. When comparing 3rd Quarter of 2006 to 3rd Quarter of 2007 we had a 9.9% increase in the average house SOLD. Also from 2nd Quarter of 2007 to 3rd Quarter 2007 we had a 8.7% increase in the average house SOLD.

There are some downsides to the market in Lake County Indiana, but only if you are trying to sell a house over $500,000. At this price point the absorption rate is 3.5 YEARS, ouch!

This is a great time to be in the real estate market. If you are in the market to buy or sell a home; make sure your real estate professional is a full time dedicated agent that is going to educate you on the process and educate you on how to best negotiate the terms that suit you the buyer or you the seller, NOT that real estate agent.

Real Estate has slowed in recent months compared to the past couple of years, but only the rate of growth has slowed not the growth itself.

To be eligible for these deductions in 2008, you must be the owner of your primary residence as of March 1, 2007. The deadline has been extended from June 10, 2007 to October 15, 2007. If you have not filed for the 2008 property tax deductions, homestead and/or Mortgage deductions now is your chance to keep 2008 taxes to the minimum.

YOU MUST file in person at the County Auditor Office, 2293 N. Main Street Crown Point, IN 46307 2nd Floor.

Please call with any questions or concerns.

For your sellers, the following points are key:

• Home values will stay stagnant or potentially decrease.
• Qualified borrowers are looking for deals.
• Fewer borrowers are qualifying for home loans.
• Rising foreclosures tend to negatively affect home values.
• Increased “days on the market” (DOMs) increases the likelihood that buyers will aggressively negotiate prices down.
• Continued stress in the financial markets will affect consumer confidence.
• Loans may take longer to close.
• Appraisals are becoming more difficult to obtain.
• Properties should be funded before contract contingencies are removed.

It’s critical to encourage sellers to price homes to sell -- and sell quickly -- decreasing the need for price reductions.

Sherman notes that buyers also need to be armed with specific tips on how to navigate most effectively in the current market:

• Make decisions to buy sooner than later —  loan guidelines are changing so quickly that an approval today may not be an approval in the future.
• Diligently protect your credit.
• Make sure that lenders are placing loans with financial institutions that can close on them.
• If someone is saying that something that is too good to be true, it probably is!
• A down payment on a property not only strengthens the case — it may be a necessity in the very near future.
• Fly-by-night lenders will say anything to get the deal.  Verify anything being offered through a reputable lender.
• Rate locks and product locks can be subject to change when a market is shifting.
• Loans take much longer to close in the current market.
• Pre-approval is critical.

This uncertain market provides a huge and unique opportunity for skilled agents to educate clients, gain their confidence and loyalty and build lasting relationships.

This is the reason why your agent really matters. A top notch Real Estate agent will help you stage your home ( get it ready to sell ), price your home ( compared to other similar homes in your neighborhood ), market your home (to the group of people most likely to purchase your home ).