November 17, 2008
FHA Loans never really went away, but they did go out of fashion for a while. Well, with the current market conditions as they are, FHA Loans a back and better than ever. This three part series will focus on the benefits of an FHA mortgage.
Currently, in DuPage County, the maximum mortgage for an FHA loan is $417,000 for a single family home. In Glen Ellyn, 108 properties are for sale under $417,000 and 146 properties are under the limit in Wheaton. So, there are plenty of homes to choose from when considering using an FHA loan.
FHA stands for Federal Housing Authority. The Federal Housing Authority has been insuring home mortgages since 1934. They currently carry 4.8 million single family mortgages and 13,000 multi-family mortgages.
This program is not just for first time home buyers. A repeat home buyer can use the plan as well as people wanting to refinance into a safer mortgage product. In the past, FHA loans had a bad rap. However, the organization has moved their standards closer to those of conventional products. FHA appraisers number over 40,000 and have similar appraisal standards as the conventional markets. FHA also offers competitive and low down payment amounts.
If you are in the market for a primary residence under $417,000 in DuPage County, an FHA loan might be the way go.
November 13, 2008
There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Here are just a few ideas on how you can stand out from the crowd.
Price It Right
The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects.
Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. This is the hardest part, from your analysis, you may want to price your home conservatively to give it a competitive edge.
Make Your Home Irresistible
Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.
Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.
Create Traffic
If you want buyers to see your home, you must first find the buyers. Create a well designed marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, open houses and so on.
Offer Incentives
Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs.
Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.
October 9, 2008
As a seller, your No. 1 goal is to sell your home as quickly as possible near the listing price. In today’s market, where there is much more competition for buyers, it is important to put your best foot, or in this case, home forward because first impressions are vital.
Many of today’s prospective homebuyers have busy lifestyles and are looking for properties that don’t require a lot of work. Therefore a home in move-in condition is much more attractive. Before placing your home on the market, you may want to invest in making needed repairs.
To get started, inspect both the inside and outside of the home. Take inventory of practical and aesthetic repairs.
- Apply a fresh coat of paint on the walls, doors, and shutters.
- Clean the carpet and buff and polish wood floors.
- Repair cracks in sidewalks and driveways, and clean any stains on them.
- Replace missing or warped roofing.
- Clean or re-grout kitchen and bathrooms.
- Repair dripping faucets and drains or plumbing fixtures that aren’t operating.
- Fix sticking doors and replace old locks and doorknobs.
- Replace old bulbs and broken electrical sockets.
- Replace cracked windows and torn screens.
- Repair broken fencing and reseal the deck.
- Clean up stains on the tiles and countertops.
Some experts also recommend hiring a certified home inspector to thoroughly and impartially evaluate the property. (For a list of inspectors in your area, visit the American Society of Home Inspectors website, www.ashi.com, or ask me for a list of recommended local inspectors.) A standard report will review the condition of the home’s heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure. Then, if there are issues, fix them before the buyer asks you to fix them. Most likely, your cost to get the work done will be less then what they think the cost is.
A home in good condition demonstrates pride of ownership. Taking the time to make small repairs to your home can go a long way in making sure that your home is presented to potential buyers in its best possible light. They also just might make the sale.
Below is a graph showing the contract history by month for 2007 and 2008 in Wheaton. This graph shows the number of actual contracts written in a certain month - not the number of homes closed.
October 6, 2008
Below is a graph showing the contract history by month for 2007 and 2008 in Glen Ellyn. This graph shows the number of actual contracts written in a certain month - not the number of homes closed.
October 2, 2008
This neighborhood map shows just how close the Glencoe Crossing neighborhood is to Glen Ellyn and Wheaton. It is literally in the middle of two towns. It has a Wheaton, Illinois address, taxes, library and water. It is also only 1.4 miles to the Glen Ellyn Train station. The children attend Glen Ellyn District 41 and 87 schools and are members of the Glen Ellyn Park District. It is the best of both worlds.
Click on the map for a larger image!
September 22, 2008
With just the stroke of a few keys, you can find many resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.
Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because they have inside knowledge on the history, culture and stories.
The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. They know the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs.A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.
Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, they will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.
And something easy to overlook is our familiarity with the complexity and risks inherent in the process. In the years I have been practicing I have been continually amazed at how quickly a seemingly simple transaction can grow legally complex and risky.
As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, and helping prepare for a smooth and uneventful closing.
If you’re about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it’s comforting to have a specialist by your side.
August 4, 2008
as your real estate professional, I promise to never to steal any of your Picasso and Chagall paintings. Or anything else for that matter!
If you watch Million Dollar Listing on Bravo, this is a must read.
Side note: this is my favorite painting by Chagall (1938) and it hangs at the Art Institute of Chicago.
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