Home prices are showing continued improvement, but not at the pace seen before. The 10 and 20-City composites recorded annual declines of 8.5% and 9.4% respectively which is better than the double digit declines we were seeing.
Prices are now generally at the levels from Aug. 2003. One in 4 borrowers are still underwater on their mortgages . Las Vegas remains the most depressed market. Report to be released shortly.
Tuesday, November 24, 2009
Sunday, November 15, 2009
Press Release From NAR Clarifies Tax Credit For Military Personnel
Homebuyer Tax Credit Has Added Benefits for Armed Services Members, Others
San Diego, November 11, 2009
The National Association of Realtors® today thanked the many members in the U.S. military on active duty for their services to America, and reminded them of special benefits for them in the recent extension and expansion of the homebuyer tax credit law.
NAR was the main proponent in getting the homebuyer’s tax credit extended into 2010 and expanded to include present homeowners.
“NAR is the leading advocate for private property and homeownership issues, and firmly believes that those who are in service to their country should be full participants in the homebuyer tax credit law,” said NAR President Charles McMillan, broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “These men and women are often hindered by hardships from full participation in the American Dream of homeownership because their duty disrupts them in the buying and selling of a home.”
Two special provisions in the present tax credit law assist members of the military, intelligence and foreign services in taking advantage of the homebuyer tax credit, said McMillan.
Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 20ll.
Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.
First-time homebuyers who are eligible can obtain a tax credit of $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
San Diego, November 11, 2009
The National Association of Realtors® today thanked the many members in the U.S. military on active duty for their services to America, and reminded them of special benefits for them in the recent extension and expansion of the homebuyer tax credit law.
NAR was the main proponent in getting the homebuyer’s tax credit extended into 2010 and expanded to include present homeowners.
“NAR is the leading advocate for private property and homeownership issues, and firmly believes that those who are in service to their country should be full participants in the homebuyer tax credit law,” said NAR President Charles McMillan, broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “These men and women are often hindered by hardships from full participation in the American Dream of homeownership because their duty disrupts them in the buying and selling of a home.”
Two special provisions in the present tax credit law assist members of the military, intelligence and foreign services in taking advantage of the homebuyer tax credit, said McMillan.
Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 20ll.
Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.
First-time homebuyers who are eligible can obtain a tax credit of $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.
Thursday, November 12, 2009
U.S. Mortgage Applications Up As Rates Drop Below 5 Percent
The Mortgage Bankers Association reports borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.97 percent, down 0.07 percentage point from the previous week. The rate remained above the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990. Nevertheless, interest rates were well below the year-ago level of 6.47 percent.
Fixed 15-year mortgage rates averaged 4.33 percent, down from 4.53 percent the previous week. Rates on one-year ARMs increased to 6.83 percent from 6.79 percent.
Fixed 15-year mortgage rates averaged 4.33 percent, down from 4.53 percent the previous week. Rates on one-year ARMs increased to 6.83 percent from 6.79 percent.
Wednesday, November 11, 2009
Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit
Check out this SlideShare Presentation:
Buying vs. Renting Using FHA Loan & $8,000 First time Buyer Credit
Check out this SlideShare Presentation:
Tuesday, September 29, 2009
U.S. House Prices Rise In July For Third Straight Month
The S&P/Case-Shiller composite index of house prices in 20 metropolitan areas rose 1.6 percent in July from June, more than triple the estimate of a 0.5 percent rise found in a Reuters poll. The index rose 1.4 percent the month before, S&P said today. The 10-city index gained 1.7 percent in July after a 1.4 percent rise the previous month. Today's report seems consistent with the 0.3% rise in the July Federal Housing Finance Agency's (FHFA) House Price Index released earlier this month.
One has to be careful to read too much into the one month data because foreclosures were down in July and these can have a dramatic impact on prices. In addition, the American Recovery and Reinvestment Act $8,000 First Time Buyer credit which expires on Dec. 1, 2009 has had a very positive impact on home sales in the past months so it remains to be seen if the trend continues.
In a live interview from Boston on "Squawk On The Street" this morning, Leif Thomsen, Mortgage Masters President and CEO, commented that mortgage and home sale activity have increased and urged that the first time buyer program be continued in its current form for several months. He even said that small bidding wars for lower priced homes have been occurring, but that the market for Jumbo mortgages is still soft.
All 20 metro areas showed an improvement in the annual rate of decline in July compared with June and only two cities, Seattle and Las Vegas, showed month-to-month declines according to the S&P/Case-Shiller index. The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8 percent drop in the 10-city index and 13.3 percent downturn in the 20-city index. Average home prices across the United States are now at levels seen in the autumn of 2003. Chicago prices were up 2.7%.
One has to be careful to read too much into the one month data because foreclosures were down in July and these can have a dramatic impact on prices. In addition, the American Recovery and Reinvestment Act $8,000 First Time Buyer credit which expires on Dec. 1, 2009 has had a very positive impact on home sales in the past months so it remains to be seen if the trend continues.
In a live interview from Boston on "Squawk On The Street" this morning, Leif Thomsen, Mortgage Masters President and CEO, commented that mortgage and home sale activity have increased and urged that the first time buyer program be continued in its current form for several months. He even said that small bidding wars for lower priced homes have been occurring, but that the market for Jumbo mortgages is still soft.
All 20 metro areas showed an improvement in the annual rate of decline in July compared with June and only two cities, Seattle and Las Vegas, showed month-to-month declines according to the S&P/Case-Shiller index. The monthly price increases helped the annual rates, with the yearly pace of declines in home prices slowing to a 12.8 percent drop in the 10-city index and 13.3 percent downturn in the 20-city index. Average home prices across the United States are now at levels seen in the autumn of 2003. Chicago prices were up 2.7%.
Monday, September 21, 2009
Local Area Schools Win Blue Ribbon Awards
The U.S. Department of Education’s Blue Ribbon Schools Program honors public and private elementary, middle and high schools that are either academically superior or that demonstrate dramatic gains in student achievement to high levels. Every year a prestigious few schools across the nation are awarded a Blue Ribbon and are honored at a ceremony in Washington, DC. Each school receives a plaque and flag signifying their status, these schools serve as models for other schools throughout the nation.
The program requires schools to meet either of two assessment criteria:
· have at least 40 percent of their students from disadvantaged backgrounds that dramatically improve student performance in accordance with state assessment systems
· It recognizes schools that; and it rewards schools that score in the top 10 percent on state assessments
Of the schools submitted by each state, at least one-third must meet the first criterion of having 40 percent of the students from disadvantaged backgrounds. The program allows both elementary and secondary schools to be recognized in the same year.
On September 15 2009, the 2009 National Blue Ribbon Schools were announced by U. S. Secretary of Education, Arne Duncan. 314 public and private schools will be honored at a ceremony in Washington, D.C., November 2-3. Of the 314 schools receiving the award, 13 Chicago area schools are honored:
Elementary Schools:
Arcadia Elementary School
20519 Arcadian Way
Olympia Fields, IL 60461-1396
Phone: (708) 747-3535
Central Elementary School
900 Central
Wilmette, IL 60091-2608
Phone: (847) 251-3252
Ira Rupley Elementary School
305 East Oakton Street
Elk Grove Village, IL 60007-1727
Phone: (847) 593-4353
Madison Elementary School
611 S Madison Street
Hinsdale, IL 60521-3982
Phone: (630) 887-1390
Stevenson Elementary School
2106 Arrowhead Drive
Bloomington, IL 61704-2357
Phone: (309) 663-2351
Windsor Elementary School
1315 E. Miner Street
Arlington Heights, IL 60004-6339
Phone: (847) 398-4297
Middle Schools:
Clarendon Hills Middle School
301 Chicago Avenue
Clarendon Hills, IL 60514-2608
Phone: (630) 887-4260
Clifford Crone Middle School
4020 111th Street
Naperville, IL 60564-5027
Phone: (630) 428-5600
Hinsdale Middle School
100 S Garfield Street
Hinsdale, IL 60521-4252
Phone: (630) 887-1370
Woodlawn Middle School
6362 Gilmer Road
Long Grove, IL 60047-5171
Phone: (847) 353-8500
High Schools:
Deerfield High School
1959 Waukegan Road
Deerfield, IL 60015-1430
Phone: (224) 632-3000
New Trier Township High School
385 Winnetka Avenue
Winnetka, IL 60093-4238
Phone: (847) 446-7000
Whitney M. Young Magnet High School
211 S Laflin Street
Chicago, IL 60607-5305
Phone: (773) 534-7500
Congratulations to the students, faculty, and parents in these schools and communities for their hard work and commitment to excellence in education.
The program requires schools to meet either of two assessment criteria:
· have at least 40 percent of their students from disadvantaged backgrounds that dramatically improve student performance in accordance with state assessment systems
· It recognizes schools that; and it rewards schools that score in the top 10 percent on state assessments
Of the schools submitted by each state, at least one-third must meet the first criterion of having 40 percent of the students from disadvantaged backgrounds. The program allows both elementary and secondary schools to be recognized in the same year.
On September 15 2009, the 2009 National Blue Ribbon Schools were announced by U. S. Secretary of Education, Arne Duncan. 314 public and private schools will be honored at a ceremony in Washington, D.C., November 2-3. Of the 314 schools receiving the award, 13 Chicago area schools are honored:
Elementary Schools:
Arcadia Elementary School
20519 Arcadian Way
Olympia Fields, IL 60461-1396
Phone: (708) 747-3535
Central Elementary School
900 Central
Wilmette, IL 60091-2608
Phone: (847) 251-3252
Ira Rupley Elementary School
305 East Oakton Street
Elk Grove Village, IL 60007-1727
Phone: (847) 593-4353
Madison Elementary School
611 S Madison Street
Hinsdale, IL 60521-3982
Phone: (630) 887-1390
Stevenson Elementary School
2106 Arrowhead Drive
Bloomington, IL 61704-2357
Phone: (309) 663-2351
Windsor Elementary School
1315 E. Miner Street
Arlington Heights, IL 60004-6339
Phone: (847) 398-4297
Middle Schools:
Clarendon Hills Middle School
301 Chicago Avenue
Clarendon Hills, IL 60514-2608
Phone: (630) 887-4260
Clifford Crone Middle School
4020 111th Street
Naperville, IL 60564-5027
Phone: (630) 428-5600
Hinsdale Middle School
100 S Garfield Street
Hinsdale, IL 60521-4252
Phone: (630) 887-1370
Woodlawn Middle School
6362 Gilmer Road
Long Grove, IL 60047-5171
Phone: (847) 353-8500
High Schools:
Deerfield High School
1959 Waukegan Road
Deerfield, IL 60015-1430
Phone: (224) 632-3000
New Trier Township High School
385 Winnetka Avenue
Winnetka, IL 60093-4238
Phone: (847) 446-7000
Whitney M. Young Magnet High School
211 S Laflin Street
Chicago, IL 60607-5305
Phone: (773) 534-7500
Congratulations to the students, faculty, and parents in these schools and communities for their hard work and commitment to excellence in education.
Sunday, September 20, 2009
Is An Auction For Me?
There are numerous ways to take advantage of distressed property sales today: short sales, foreclosures, auctions, and private sales. Each has advantages and disdvantages. Let's focus on auctions today. We will look at public auctions held by auction houses, not Sheriff sales.
Public auctions of real estate can be daunting, but don't have to be. What if I really want to buy a specific property? Will I be bidding against seasoned investors who will bid the price up beyond my price? Worse yet, will I accidentaly buy a property because I rubbed my nose or waved to a friend. There are a lot of myths about public auctions which need to be disspelled.
First, if you intend to buy a specific property at an auction, do your homework. You need to have your strategy clear. Are you buying it as a principal residence or as an investment property? How will you hold title? How will you finance the purchase and any necessary renovations? Engage your trusted advisors: accountant, attorney, property inspector, lender, and real estate professional. Answering these questions is key to guiding your actions. It is well known, that you make your money when you buy real estate not when you sell it. If you do not understand what this means ask me. You need to be very clear on your ultimate exit strategy and have a good idea about timing.
Then go visit the property and learn as much as possible about the history and potential issues with it. This is a real good time to engage your trusted real estate advisor. In most cases, the party selling the property is prepared to pay for your buyer representation. You should visit the property with your agent and they should prepare a Comparative Market Analysis (CMA)for the property both in its existing condition and after improvements. This is the information you will need to formulate the upper limit of what you will pay for the property and how much room you will have left to make repairs and renovations while protecting your profit margin and downside risk. It can also be a very good idea to have a professional property inspection done at this time.
It's a good idea to put together a detailed list of all of the repairs and renovations required for this property. With this budget in hand you can model the property financials. For investors, I have a robust financial model which calculates the buy-in captialization rate, the projected sale capitalization rate and the financial hurdle rates. It can be used to develop "what if" scenarios and develop contingency plans.
Gather all of the bid documents and get them to your attorney for review. This will include things like the purchase agreement, disclosures and other contractual agreements with the auction company and the seller. You need to have these reviewed and you will be asked to sign a waiver saying that you have been given the opportunity to have them reviewed in advance of the auction.
When you go to the auction, you will register with the auction company. You will need to have a certified check in hand for the amount they have specified. This check can be made out to you and is proof that you have the funds necessary to bid. It is also usually the amount that you will have at risk if you bid successfully, sign the purchase agreement, but decide not to go ahead with closing on the property. This is referred to as "liquidated damages". If you do not bid on a property or do not bid successfully, the check can be returned to your bank for cancellation.
As you enter the auction hall or ballroom, there will probably be a lot of hubbub. This is an exciting moment and the auctioneers are there to create an atmosphere of frenzy. It is their job to get the highest price for the property and they are good at working the crowd to get the bidding going hot and heavy. You will have been issued a paddle or numbered card to indicate that you are bidding on a property. The floor assistants to the autioneer will work specified areas of the floor and manage the bidding. Floor assistants will try to get the bidders working against each other, but they will be constantly checking that a bid is real and understood. They won't confuse a bid signal with a nose rub.
Going, going, gone. When the property is presented, the auctioneer will bring to the attention of the bidders any special conditions regarding the property which will also have been included in the property bid package. These might include special items such as pending issues with the city or municipality, mold or other disclosures, and minimum reserves or the hurdle price which the bidding must overcome for the property to be sold at the aution. However, do not rely on the special disclosures to take the place of having done your own homework. Once the property bidding price has overcome the reserve, the auctioneer will announce that the next successful bid will buy the property. Now is when you need discipline. If you have done your financial analysis and contained your emotions, you will either continue to bid or you will walk away if you go beyond your price. Remember, other bidders have other financial models and targets and may also let their emotions get the better of them. Also, do not forget that there will be a buyer's premium (maybe 5%) which will be added to the final price.
If you have been succesful in your bid, you will then go to a separate room to finalize the purchase agreement and other documents, receive special instructions and contact information, and orgainze the timing of your closing. Most likely, this paperwork will need to be forwarded to the party (usually a bank) owning the property to be reviewed and negotiated or a verbal agreement will be reached. Later, you will be instructed in writing if your purchase offer has been accepted. Use this time to revisit the property and finalize your plans. Then it's time to get your money together, close on the property and start working on it.
Auctions can be great opportunities to get real estate at well below market prices today. Remember to engage your trusted advisors: Accountant, Attorney, Lender, Property Inspector, and Real Estate Professional. Have a plan, follow your plan not your emotions, and have contingencies.
Public auctions of real estate can be daunting, but don't have to be. What if I really want to buy a specific property? Will I be bidding against seasoned investors who will bid the price up beyond my price? Worse yet, will I accidentaly buy a property because I rubbed my nose or waved to a friend. There are a lot of myths about public auctions which need to be disspelled.
First, if you intend to buy a specific property at an auction, do your homework. You need to have your strategy clear. Are you buying it as a principal residence or as an investment property? How will you hold title? How will you finance the purchase and any necessary renovations? Engage your trusted advisors: accountant, attorney, property inspector, lender, and real estate professional. Answering these questions is key to guiding your actions. It is well known, that you make your money when you buy real estate not when you sell it. If you do not understand what this means ask me. You need to be very clear on your ultimate exit strategy and have a good idea about timing.
Then go visit the property and learn as much as possible about the history and potential issues with it. This is a real good time to engage your trusted real estate advisor. In most cases, the party selling the property is prepared to pay for your buyer representation. You should visit the property with your agent and they should prepare a Comparative Market Analysis (CMA)for the property both in its existing condition and after improvements. This is the information you will need to formulate the upper limit of what you will pay for the property and how much room you will have left to make repairs and renovations while protecting your profit margin and downside risk. It can also be a very good idea to have a professional property inspection done at this time.
It's a good idea to put together a detailed list of all of the repairs and renovations required for this property. With this budget in hand you can model the property financials. For investors, I have a robust financial model which calculates the buy-in captialization rate, the projected sale capitalization rate and the financial hurdle rates. It can be used to develop "what if" scenarios and develop contingency plans.
Gather all of the bid documents and get them to your attorney for review. This will include things like the purchase agreement, disclosures and other contractual agreements with the auction company and the seller. You need to have these reviewed and you will be asked to sign a waiver saying that you have been given the opportunity to have them reviewed in advance of the auction.
When you go to the auction, you will register with the auction company. You will need to have a certified check in hand for the amount they have specified. This check can be made out to you and is proof that you have the funds necessary to bid. It is also usually the amount that you will have at risk if you bid successfully, sign the purchase agreement, but decide not to go ahead with closing on the property. This is referred to as "liquidated damages". If you do not bid on a property or do not bid successfully, the check can be returned to your bank for cancellation.
As you enter the auction hall or ballroom, there will probably be a lot of hubbub. This is an exciting moment and the auctioneers are there to create an atmosphere of frenzy. It is their job to get the highest price for the property and they are good at working the crowd to get the bidding going hot and heavy. You will have been issued a paddle or numbered card to indicate that you are bidding on a property. The floor assistants to the autioneer will work specified areas of the floor and manage the bidding. Floor assistants will try to get the bidders working against each other, but they will be constantly checking that a bid is real and understood. They won't confuse a bid signal with a nose rub.
Going, going, gone. When the property is presented, the auctioneer will bring to the attention of the bidders any special conditions regarding the property which will also have been included in the property bid package. These might include special items such as pending issues with the city or municipality, mold or other disclosures, and minimum reserves or the hurdle price which the bidding must overcome for the property to be sold at the aution. However, do not rely on the special disclosures to take the place of having done your own homework. Once the property bidding price has overcome the reserve, the auctioneer will announce that the next successful bid will buy the property. Now is when you need discipline. If you have done your financial analysis and contained your emotions, you will either continue to bid or you will walk away if you go beyond your price. Remember, other bidders have other financial models and targets and may also let their emotions get the better of them. Also, do not forget that there will be a buyer's premium (maybe 5%) which will be added to the final price.
If you have been succesful in your bid, you will then go to a separate room to finalize the purchase agreement and other documents, receive special instructions and contact information, and orgainze the timing of your closing. Most likely, this paperwork will need to be forwarded to the party (usually a bank) owning the property to be reviewed and negotiated or a verbal agreement will be reached. Later, you will be instructed in writing if your purchase offer has been accepted. Use this time to revisit the property and finalize your plans. Then it's time to get your money together, close on the property and start working on it.
Auctions can be great opportunities to get real estate at well below market prices today. Remember to engage your trusted advisors: Accountant, Attorney, Lender, Property Inspector, and Real Estate Professional. Have a plan, follow your plan not your emotions, and have contingencies.
Tuesday, September 8, 2009
Top 10 Ways to Make Home Buyers Hate your House
Selling a Home? Avoid these Home Buyer Turnoffs
Are you selling a home? Did you know that even though home buyers are all looking for something different, the majority of them will turn around and walk back out of your door if they notice one or more of these Top 10 problems.
1. Odors
House odors are number one on the home selling uh-oh list. The most offensive are: cigarette smoke and pets followed by mildew not far behind.
If you smoke indoors--the house smells like cigarettes. If you have pets, the house might smell bad--even if you don't notice it. Ask someone who doesn't live there to take a sniff, and don't get angry when they tell you the truth.
Eradicate the odors so that you can present potential buyers with a clean, fresh atmosphere--not a house that's full of perfumes to cover up the odors.
2. Dogs that Meet You at the Door or in the DrivewayDogs frighten some people and irritate others. You'll have a much better response from showings if you control your pets--dogs, cats, whatever.
You say you plan to put them in a bedroom or garage and then ask people not to open the door to that area? Bad idea. Would you buy a house you can't inspect? Of course not.
Remove pets during showings if possible. If you can't, contain them in crates for their own safety and to show respect for the feelings of potential buyers.
3. Dirty Bathrooms
Grimy bathrooms are an instant turnoff. Scrub them, paint them, buy a new shower curtain, rugs and towels--do what it takes to make them shine. If you're serious about selling the home, the extra work is a must.
4. Dimly Lit Rooms
Dark homes are a turnoff to most home buyers, so try to brighten them up:
Replace dim light fixtures
Install additional light fixtures
Install (quality) sun tunnels or skylights
Remove heavy drapes to let the light stream through windows
Repaint some rooms with colors that reflect light
Trim tree limbs that shadow the house
Dirty and fogged windows are another buyer turnoff. Clean them inside and out to bring in more light. If possible, replace any double-pane windows with broken seals. You can find them by looking for a foggy residue that cannot be removed.
5. A House Full of Busy Wallpaper
Busy wallpaper in every room turns off most buyers, and even people who love wallpaper rarely like what you've chosen. It's a personal decorative touch that they want to select themselves.
It's the masses you must appeal to when you're selling a home, so take a hard look at your wallpaper and decide if it should be removed and replaced with paint. Don't paint over it, because it will be obvious that you did--and buyers know that makes removing it even more difficult.
6. Damp Basements
Dampness or damp smells in the basement throw up a red flag to buyers that the foundation leaks!
Most problems we see are not caused by faulty foundations. They occur because rainwater is being diverted towards the foundation instead of away from it.
Clogged underground drains
No rain gutters along roofline
Downspouts aimed the wrong way
Go outside the next time it rains and determine where runoff water is going.
7. BugsRoaches, spiders, any insect that shouldn't be in the house. Get rid of them.
8. Poor Curb Appeal
You must grab a buyer's interest from the curb if you want to sell the home for top dollar. Home buyers often refuse to go into a house with an unkempt yard, sagging doors or peeling paint. You say you can't afford to paint? Okay, but get that yard in tip-top shape and grab a screwdriver to fix those doors.
9. Gutters with Plants Growing in Them
I'm serious. Some people never clean their gutters, and it always makes buyers wonder what else hasn't been maintained.
Remember the drainage issue in #6? Cleaning packed gutters might help.
10. Sellers Who Hang Around for Showings
Yes, you... leave the house during showings. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is home.
If you're selling by owner, give them some space, don't hover.
Parting Words
Most of the Top 10 problems are home selling issues you can correct without spending a lot of money. Do it now, before you put the house on the market, because if your house develops a reputation among agents as the house that smells, the house with the huge barking dog or the house where the owner won't leave people alone, it will be too late. Your house will be last on their list to show potential buyers.
Are you selling a home? Did you know that even though home buyers are all looking for something different, the majority of them will turn around and walk back out of your door if they notice one or more of these Top 10 problems.
1. Odors
House odors are number one on the home selling uh-oh list. The most offensive are: cigarette smoke and pets followed by mildew not far behind.
If you smoke indoors--the house smells like cigarettes. If you have pets, the house might smell bad--even if you don't notice it. Ask someone who doesn't live there to take a sniff, and don't get angry when they tell you the truth.
Eradicate the odors so that you can present potential buyers with a clean, fresh atmosphere--not a house that's full of perfumes to cover up the odors.
2. Dogs that Meet You at the Door or in the DrivewayDogs frighten some people and irritate others. You'll have a much better response from showings if you control your pets--dogs, cats, whatever.
You say you plan to put them in a bedroom or garage and then ask people not to open the door to that area? Bad idea. Would you buy a house you can't inspect? Of course not.
Remove pets during showings if possible. If you can't, contain them in crates for their own safety and to show respect for the feelings of potential buyers.
3. Dirty Bathrooms
Grimy bathrooms are an instant turnoff. Scrub them, paint them, buy a new shower curtain, rugs and towels--do what it takes to make them shine. If you're serious about selling the home, the extra work is a must.
4. Dimly Lit Rooms
Dark homes are a turnoff to most home buyers, so try to brighten them up:
Replace dim light fixtures
Install additional light fixtures
Install (quality) sun tunnels or skylights
Remove heavy drapes to let the light stream through windows
Repaint some rooms with colors that reflect light
Trim tree limbs that shadow the house
Dirty and fogged windows are another buyer turnoff. Clean them inside and out to bring in more light. If possible, replace any double-pane windows with broken seals. You can find them by looking for a foggy residue that cannot be removed.
5. A House Full of Busy Wallpaper
Busy wallpaper in every room turns off most buyers, and even people who love wallpaper rarely like what you've chosen. It's a personal decorative touch that they want to select themselves.
It's the masses you must appeal to when you're selling a home, so take a hard look at your wallpaper and decide if it should be removed and replaced with paint. Don't paint over it, because it will be obvious that you did--and buyers know that makes removing it even more difficult.
6. Damp Basements
Dampness or damp smells in the basement throw up a red flag to buyers that the foundation leaks!
Most problems we see are not caused by faulty foundations. They occur because rainwater is being diverted towards the foundation instead of away from it.
Clogged underground drains
No rain gutters along roofline
Downspouts aimed the wrong way
Go outside the next time it rains and determine where runoff water is going.
7. BugsRoaches, spiders, any insect that shouldn't be in the house. Get rid of them.
8. Poor Curb Appeal
You must grab a buyer's interest from the curb if you want to sell the home for top dollar. Home buyers often refuse to go into a house with an unkempt yard, sagging doors or peeling paint. You say you can't afford to paint? Okay, but get that yard in tip-top shape and grab a screwdriver to fix those doors.
9. Gutters with Plants Growing in Them
I'm serious. Some people never clean their gutters, and it always makes buyers wonder what else hasn't been maintained.
Remember the drainage issue in #6? Cleaning packed gutters might help.
10. Sellers Who Hang Around for Showings
Yes, you... leave the house during showings. Home buyers feel awkward about opening closet doors and lingering for a really good look at the house if the seller is home.
If you're selling by owner, give them some space, don't hover.
Parting Words
Most of the Top 10 problems are home selling issues you can correct without spending a lot of money. Do it now, before you put the house on the market, because if your house develops a reputation among agents as the house that smells, the house with the huge barking dog or the house where the owner won't leave people alone, it will be too late. Your house will be last on their list to show potential buyers.
Sunday, August 9, 2009
Mortgage Rates Dip Slightly
The 30-year fixed mortgage rate dropped to 5.22 percent during the week ended Aug. 6 from 5.25 percent the prior week, Freddie Mac reports.
Over the same period, the 15-year fixed-mortgage rate slipped to 4.63 percent from 4.69 percent.
As for adjustable-mortgage rates, the five-year fell to 4.73 percent from 4.75 percent, and the one-year dipped to 4.78 percent from 4.80 percent.
Source: Los Angeles Times (08/07/09)
Over the same period, the 15-year fixed-mortgage rate slipped to 4.63 percent from 4.69 percent.
As for adjustable-mortgage rates, the five-year fell to 4.73 percent from 4.75 percent, and the one-year dipped to 4.78 percent from 4.80 percent.
Source: Los Angeles Times (08/07/09)
Saturday, August 1, 2009
Remodeling Pyabacks
Many homeowners want to select renovation projects that are likely to yield the highest return on their investment when they ultimately sell their home.
The following renovations are those most likely to result in a payback for homeowners:
Average Cost Return on Investment
Vinyl Siding Replacement $9,134 87.2%
Minor Kitchen Remodel $17,928 85.2%
Window Replacement (Wood / Vinyl) $11,040 / $10,160 85.3% / 83.7%
Bathroom Remodel $12,918 84.9%
Two-Story Addition $105,297 83.2%
Attic Bedroom $44,073 79.9%
Although return on investment is important, also consider your lifestyle. If your family is growing, an extra bathroom or bedroom may be your most immediate need, even if a kitchen remodel would result in a higher return on investment. In contrast, empty nesters may be more inclined to take on renovations that reduce ongoing maintenance, such as vinyl siding, instead of adding space to their home.
The following renovations are those most likely to result in a payback for homeowners:
Average Cost Return on Investment
Vinyl Siding Replacement $9,134 87.2%
Minor Kitchen Remodel $17,928 85.2%
Window Replacement (Wood / Vinyl) $11,040 / $10,160 85.3% / 83.7%
Bathroom Remodel $12,918 84.9%
Two-Story Addition $105,297 83.2%
Attic Bedroom $44,073 79.9%
Although return on investment is important, also consider your lifestyle. If your family is growing, an extra bathroom or bedroom may be your most immediate need, even if a kitchen remodel would result in a higher return on investment. In contrast, empty nesters may be more inclined to take on renovations that reduce ongoing maintenance, such as vinyl siding, instead of adding space to their home.
Saturday, July 25, 2009
Housing Experts: Now Is a Perfect Time To Buy
Daily Real Estate News July 20, 2009
Housing Experts: Now Is a Perfect Time to Buy
Now is the time to buy, but that opportunity may be slipping away. For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek. He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Housing Experts: Now Is a Perfect Time to Buy
Now is the time to buy, but that opportunity may be slipping away. For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek. He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
Source: BusinessWeek.com, Marc Roth (11/17/2009)
Sunday, July 19, 2009
Pending Home Sales Record Fourth Straight Monthly Gain
Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the latest survey. The Pending Home Sales Index increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004. Lawrence Yun, NAR chief economist, cautions that there could be delays in the number of contracts that go to closing. “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” he said. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
Wednesday, July 15, 2009
Home Warranty - Should I have one?
Home warranties not only protect the buyers and sellers in a transaction; they also assist everyone in getting to the closing table more quickly and smoothly. Here's a look at some tips and advice for understanding the benefits of purchasing a home warranty:
Peace of mind for buyers
Most warranties provide coverage against mechanical failures for many major systems and appliances in a newly purchased home. Oftentimes, the coverage extends to items that most homeowners' insurance policies won't cover, leaving buyers in a sticky spot.
Buying a home with a warranty helps avoid closing delays when an appliance or water heater, for example, breaks down. Plus, buyers can opt to renew the warranty after the first year and extend the coverage – and their peace of mind – on one of their biggest investments.
Home warranty companies require only a standard deductible per service call on covered components. Plus, customers can reach someone 24 hours a day, 7 days a week to ensure that an appliance or system breakdown doesn't become a major catastrophe.
When representing buyers, I always ask for a home warranty in the initial offer and I have never had the experience of a seller saying no.
Sellers can list with confidence
Many sellers are facing negative equity, declining home values and fierce competition from distressed properties. Offering a home warranty on their listing helps set it apart from the competition and make it a more attractive option to homebuyers.
According to a recent study by on home warranty company, homes with a home warranty sold an average of 23 days faster and closer to the list price – an average of 4 percent higher at closing.
At least one home warranty company offers a plan to the seller which covers the home at no cost during the listing period and is only paid for at closing. The warranty then covers the buyer for 13 months. This is outstanding coverage for both parties and since I am going to ask for it on behalf of the buyer, it only makes sense that the seller should have it in place and also enjoy the benefits.
Home warranties crucial for distressed properties
Nearly half of the listings on the market today are distressed properties. That means many homes are left in less than presentable condition. Whether it is a bank-owned listing, a seller who's upside down in a short sale, or a buyer looking at REO properties, a home warranty protects everyone if an appliance or system in a vacant home fails.
In a majority of the areas throughout the U.S., basic plans from some companies cover unknown pre-existing conditions, lack of maintenance, sediment, rust and corrosion, and many other critical mechanicals that homeowners find themselves dishing out cash for these days."
So whether you are buying or selling, it makes good sense to have a home warranty.
Peace of mind for buyers
Most warranties provide coverage against mechanical failures for many major systems and appliances in a newly purchased home. Oftentimes, the coverage extends to items that most homeowners' insurance policies won't cover, leaving buyers in a sticky spot.
Buying a home with a warranty helps avoid closing delays when an appliance or water heater, for example, breaks down. Plus, buyers can opt to renew the warranty after the first year and extend the coverage – and their peace of mind – on one of their biggest investments.
Home warranty companies require only a standard deductible per service call on covered components. Plus, customers can reach someone 24 hours a day, 7 days a week to ensure that an appliance or system breakdown doesn't become a major catastrophe.
When representing buyers, I always ask for a home warranty in the initial offer and I have never had the experience of a seller saying no.
Sellers can list with confidence
Many sellers are facing negative equity, declining home values and fierce competition from distressed properties. Offering a home warranty on their listing helps set it apart from the competition and make it a more attractive option to homebuyers.
According to a recent study by on home warranty company, homes with a home warranty sold an average of 23 days faster and closer to the list price – an average of 4 percent higher at closing.
At least one home warranty company offers a plan to the seller which covers the home at no cost during the listing period and is only paid for at closing. The warranty then covers the buyer for 13 months. This is outstanding coverage for both parties and since I am going to ask for it on behalf of the buyer, it only makes sense that the seller should have it in place and also enjoy the benefits.
Home warranties crucial for distressed properties
Nearly half of the listings on the market today are distressed properties. That means many homes are left in less than presentable condition. Whether it is a bank-owned listing, a seller who's upside down in a short sale, or a buyer looking at REO properties, a home warranty protects everyone if an appliance or system in a vacant home fails.
In a majority of the areas throughout the U.S., basic plans from some companies cover unknown pre-existing conditions, lack of maintenance, sediment, rust and corrosion, and many other critical mechanicals that homeowners find themselves dishing out cash for these days."
So whether you are buying or selling, it makes good sense to have a home warranty.
Maybe it is really a "Lender's Market"
A "Lender's Market"? What the heck is that?
A “Lenders Market” is typically where there is a large number of or a majority of the market is made up of distressed property sales where the owner is either in default of keeping the mortgage current or has already been foreclosed upon (Real Estate Owned or REO). A property is also said to be distressed if the value of the property is less than the mortgage or trust deed amount and the owners are unable to keep the mortgage current and want to sell the property. This is commonly known as a "Short Sale".
A "Lender's Market" might have a combination of many of these characteristics. Many of the buyers benefits in their offer to purchase are striped away including the pest inspection and clearance, closing costs, home warranties and repair requests with the lender opting to sell the property in it's present physical condition. Naturally there are exceptions to this depending on the Lender and whether the distressed property is a short sale or REO. By and large, lenders want the highest possible price with the least number of contingencies. Only Buyer’s with pre-approved loans are considered and in the case of REO’s, the lenders will give greater priority to All Cash offers over offers with financing even if the offering amount is slightly less. All Cash offers have less contingencies and can usually close faster clearing the asset from the lender’s books faster without any hassles or delays as may be occasioned by other banks that are providing the Buyer’s loan.
So depending on where you stand, it is either a "Buyer's Market" or a "Lender's Market". If you are trying to buy either and REO or a Short Sale, the terms are largely in the hands of the lenders, but the price is still clearly in the hands of the buyers. If you aren't in love with just any property, there can be some very significant buying opportunities in distressed properties, but there are also many potential pitfalls. You don't fall into a trap you can't get out of so this is the time to have an experienced team of real estate experts on our side. You can get that help at www.propertysiteonline.com
A “Lenders Market” is typically where there is a large number of or a majority of the market is made up of distressed property sales where the owner is either in default of keeping the mortgage current or has already been foreclosed upon (Real Estate Owned or REO). A property is also said to be distressed if the value of the property is less than the mortgage or trust deed amount and the owners are unable to keep the mortgage current and want to sell the property. This is commonly known as a "Short Sale".
A "Lender's Market" might have a combination of many of these characteristics. Many of the buyers benefits in their offer to purchase are striped away including the pest inspection and clearance, closing costs, home warranties and repair requests with the lender opting to sell the property in it's present physical condition. Naturally there are exceptions to this depending on the Lender and whether the distressed property is a short sale or REO. By and large, lenders want the highest possible price with the least number of contingencies. Only Buyer’s with pre-approved loans are considered and in the case of REO’s, the lenders will give greater priority to All Cash offers over offers with financing even if the offering amount is slightly less. All Cash offers have less contingencies and can usually close faster clearing the asset from the lender’s books faster without any hassles or delays as may be occasioned by other banks that are providing the Buyer’s loan.
So depending on where you stand, it is either a "Buyer's Market" or a "Lender's Market". If you are trying to buy either and REO or a Short Sale, the terms are largely in the hands of the lenders, but the price is still clearly in the hands of the buyers. If you aren't in love with just any property, there can be some very significant buying opportunities in distressed properties, but there are also many potential pitfalls. You don't fall into a trap you can't get out of so this is the time to have an experienced team of real estate experts on our side. You can get that help at www.propertysiteonline.com
Well, it sure isn't a seller's market
In defining a "Sellers Market", there is a lower than usual and faster moving inventory with prices generally increasing and the Seller more clearly in control to determine the outcome of any successful effort to purchase. Buyer's tend to pay more ( often times more than property might be listed for). Many of the buyers contingencies are either eliminated or greatly reduced. The time for removal of contingencies is shortened. In some cases many of contingencies are negotiated way, such as a buyers typical request for repairs and the length of time the buyer has to obtain services such as appraisal and loan approval.
In a really hot “Seller’s Market”, buyers typically need more down payment and higher earnest money deposits that may be defaulted if the Buyer fails to consummate the transaction in the exact time frame as outlined in the purchase agreement.
Ah, the good old days, for sellers that is...but if you are a buyer....which many are and should be today with the low interest rates and $8,000 tax credit it's good news.
In a really hot “Seller’s Market”, buyers typically need more down payment and higher earnest money deposits that may be defaulted if the Buyer fails to consummate the transaction in the exact time frame as outlined in the purchase agreement.
Ah, the good old days, for sellers that is...but if you are a buyer....which many are and should be today with the low interest rates and $8,000 tax credit it's good news.
Is It A Buyer's Market?
In a “Buyer’s Market”, buyers tend to have greater control of the time frames and also many of the terms and conditions in the contract tend to favor their wants. Sort of a flip of what is found in the “Seller’s Markets”. In a “Buyer’s Market”, buyers typically pay less than they might in an active “Seller’s Market” and usually have a larger selection of properties to choose from.
What Do You Think?
What Do You Think?
Monday, July 13, 2009
VA Loan Eligibility - Do you qualify?
This is taken directly from the Department of Vetran Affairs
General Rules for Eligibility
Military Service Requirements for VA Loan Eligibility:
Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime - Service During:
WWII: 9/16/1940 to 7/25/1947
Korean: 6/27/1950 to 1/31/1955
Vietnam: 8/5/1964 to 5/7/1975
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
Peacetime - Service during periods:
7/26/1947 to 6/26/1950
2/1/1955 to 8/4/1964
5/8/1975 to 9/7/1980 (Enlisted)
5/8/1975 to 10/16/1981 (Officer)
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)
If you were separated from service which began after these dates, you must have:
Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or
Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;
Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War - Service during period 8/2/1990 to date yet to be determined
If you served on active duty during the Gulf War, you must have:
Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or
Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard
If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and
Were discharged with an honorable discharge, or
Were placed on the retired list, or
Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or
Continue to serve in the Selected Reserves
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
You May also be determined eligible if you:
Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
Are a spouse of a serviceperson missing in action or a prisoner of war
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.
Eligibility may also be established for:
Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.
Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.
General Rules for Eligibility
Military Service Requirements for VA Loan Eligibility:
Note: Applications involving other than honorable discharges will usually require further development by VA. This is necessary to determine if the service was under other than dishonorable conditions.
Wartime - Service During:
WWII: 9/16/1940 to 7/25/1947
Korean: 6/27/1950 to 1/31/1955
Vietnam: 8/5/1964 to 5/7/1975
You must have at least 90 days on active duty and been discharged under other than dishonorable conditions. If you served less than 90 days, you may be eligible if discharged for a service connected disability.
Peacetime - Service during periods:
7/26/1947 to 6/26/1950
2/1/1955 to 8/4/1964
5/8/1975 to 9/7/1980 (Enlisted)
5/8/1975 to 10/16/1981 (Officer)
You must have served at least 181 days of continuous active duty and been discharged under other than dishonorable conditions. If you served less than 181 days, you may be eligible if discharged for a service connected disability.
Service after 9/7/1980 (enlisted) or 10/16/1981 (officer)
If you were separated from service which began after these dates, you must have:
Completed 24 months of continuous active duty or the full period (at least 181 days) for which you were ordered or called to active duty and been discharged under conditions other than dishonorable, or
Completed at least 181 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1171 (Early Out), or have been determined to have a compensable service-connected disability;
Been discharged with less than 181 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances for the convenience of the Government.
Gulf War - Service during period 8/2/1990 to date yet to be determined
If you served on active duty during the Gulf War, you must have:
Completed 24 months of continuous active duty or the full period (at least 90 days) for which you were called or ordered to active duty, and been discharged under conditions other than dishonorable, or
Completed at least 90 days of active duty and been discharged under the specific authority of 10 USC 1173 (Hardship), or 10 USC 1173 (Early Out), or have been determined to have a compensable service-connected disability, or
Been discharged with less than 90 days of service for a service-connected disability. Individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or, in some instances, for the convenience of the Government.
Active Duty Service Personnel
If you are now on regular duty (not active duty for training), you are eligible after having served 181 days (90 days during the Gulf War) unless discharged or separated from a previous qualifying period of active duty service.
Selected Reserves or National Guard
If you are not otherwise eligible and you have completed a total of 6 years in the Selected Reserves or National Guard (member of an active unit, attended required weekend drills and 2-week active duty for training) and
Were discharged with an honorable discharge, or
Were placed on the retired list, or
Were transferred to the Standby Reserve or an element of the Ready Reserve other than the Selected Reserve after service characterized as honorable service, or
Continue to serve in the Selected Reserves
Individuals who completed less than 6 years may be eligible if discharged for a service-connected disability.
You May also be determined eligible if you:
Are an unremarried spouse of a veteran who died while in service or from a service connected disability, or
Are a spouse of a serviceperson missing in action or a prisoner of war
Note: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 6, 2003 that are received after December 15, 2004.
Eligibility may also be established for:
Certain United States citizens who served in the armed forces of a government allied with the United States in WW II.
Individuals with service as members in certain organizations, such as Public Health Service officers, cadets at the United States Military, Air Force, or Coast Guard Academy, midshipmen at the United States Naval Academy, officers of National Oceanic & Atmospheric Administration, merchant seaman with WW II service, and others.
Illinois Prices and Sales Up according to Illinois Association of Realtors
Illinois Market Gets Moving with May Home Sales Up 19.3 Percent from April; Statewide Median Price at $158,000
SPRINGFIELD, Ill. — The month of May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price, according to the Illinois Association of REALTORS® latest report. Total home sales (which include single-family and condominiums) were up 19.3 percent in May 2009 to 8,945 homes compared to 7,501 homes sold in April 2009. Compared to a year ago, home sales were down 21.0 percent from May 2008 sales of 11,326.
The Illinois median price in May 2009 was $158,000, up 4.5 percent from $151,200 in April 2009; it was down 16.0 percent from $188,000 a year ago in May 2008. The median is a typical market price where half the homes sold for more, half sold for less.
“We are seeing more activity in the housing market with increased listings, more activity at showings, a surge in interest from first-time buyers as well as some improvement in time on market,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®. “First-time homebuyers who want to take advantage of the $8,000 tax credit need to be aware that the purchase has to close no later than November 30 given the December 1 cut-off under current guidelines by the federal government. That means being under contract by early fall.”
Adds Callan: “Mortgage interest rates are another factor for moving swiftly in this market. They remain at historic lows but where they will be in coming months is uncertain.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.89 percent in May 2009, up slightly from the 4.85 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 6.04 percent.
“Month-to-month sales have recorded increases for the months of March, April and May and this is expected to continue into June,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The modest recovery in housing prices and sales has been constrained by the job losses in the economy as a whole. A sustained housing recovery is still not within sight and much will depend on the degree to which federal stimulus funds and the resolution of the state’s budget generate a much needed boost to employment.”
Adds Hewings: “Since the beginning of the recession in December 2007, Illinois has posted negative job changes 18 times. Illinois' official unemployment rate in May was 10.1 percent, the highest rate in the last 25 years.”
In the Chicago Primary Metropolitan Statistical Area (PMSA), home sales were up 18.7 percent to 5,634 homes sold in May 2009 compared to 4,747 home sales in April 2009; sales were down 18.7 percent from 6,927 home sales in May 2008.
The median home sale price for the Chicagoland PMSA was $200,000 in May 2009, up 4.2 percent from $192,000 in April 2009; the median price was down 20.3 percent from $251,000 in May 2008. In the city of Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales compared to April 2009 sales of 1,378; sales were down 27.5 percent from 2,119 homes sold in May 2008.
The city of Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.
“We’re encouraged to see the bank-owned inventory moving in the marketplace, indicating buyers are finding good bargains, especially in single family homes and flats,” said David Hanna, president of the Chicago Association of REALTORS®. “The city of Chicago condominium sales numbers continue to reflect a critical need for governmental agencies to review the growing disparity in the ability to finance a condominium purchase in the city. This affordable housing will become unaffordable and unattainable to many qualified first-time homebuyers in the city of Chicago unless existing federal guidelines, which do not take into account nuances of the local market, are modified.”
According to the IAR report, median home sale prices comparing May 2009 to the same month in 2008 were up in 37 of 98 Illinois counties reporting including Adams, up 16.2 percent to $99,900; DeWitt, up 12.0 percent to $106,250; Kankakee, up 17.8 percent to $149,000; Knox, up 4.1 percent to $76,000; Macon, up 0.1 percent to $85,050; McDonough, up 19.8 percent to $85,000; Rock Island, up 6.1% to $95,500; Stephenson, up 2.6 percent to $80,000 and Whiteside, up 6.5 percent to $90,450.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
The Illinois Association of REALTORS® is a voluntary trade association whose 53,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
SPRINGFIELD, Ill. — The month of May marked the fourth consecutive month-to-month increase in home sales for the Illinois housing market and the third monthly increase in the statewide median home sale price, according to the Illinois Association of REALTORS® latest report. Total home sales (which include single-family and condominiums) were up 19.3 percent in May 2009 to 8,945 homes compared to 7,501 homes sold in April 2009. Compared to a year ago, home sales were down 21.0 percent from May 2008 sales of 11,326.
The Illinois median price in May 2009 was $158,000, up 4.5 percent from $151,200 in April 2009; it was down 16.0 percent from $188,000 a year ago in May 2008. The median is a typical market price where half the homes sold for more, half sold for less.
“We are seeing more activity in the housing market with increased listings, more activity at showings, a surge in interest from first-time buyers as well as some improvement in time on market,” said REALTOR® Pat Callan, president of the Illinois Association of REALTORS®. “First-time homebuyers who want to take advantage of the $8,000 tax credit need to be aware that the purchase has to close no later than November 30 given the December 1 cut-off under current guidelines by the federal government. That means being under contract by early fall.”
Adds Callan: “Mortgage interest rates are another factor for moving swiftly in this market. They remain at historic lows but where they will be in coming months is uncertain.”
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.89 percent in May 2009, up slightly from the 4.85 average rate during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 6.04 percent.
“Month-to-month sales have recorded increases for the months of March, April and May and this is expected to continue into June,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “The modest recovery in housing prices and sales has been constrained by the job losses in the economy as a whole. A sustained housing recovery is still not within sight and much will depend on the degree to which federal stimulus funds and the resolution of the state’s budget generate a much needed boost to employment.”
Adds Hewings: “Since the beginning of the recession in December 2007, Illinois has posted negative job changes 18 times. Illinois' official unemployment rate in May was 10.1 percent, the highest rate in the last 25 years.”
In the Chicago Primary Metropolitan Statistical Area (PMSA), home sales were up 18.7 percent to 5,634 homes sold in May 2009 compared to 4,747 home sales in April 2009; sales were down 18.7 percent from 6,927 home sales in May 2008.
The median home sale price for the Chicagoland PMSA was $200,000 in May 2009, up 4.2 percent from $192,000 in April 2009; the median price was down 20.3 percent from $251,000 in May 2008. In the city of Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales compared to April 2009 sales of 1,378; sales were down 27.5 percent from 2,119 homes sold in May 2008.
The city of Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.
“We’re encouraged to see the bank-owned inventory moving in the marketplace, indicating buyers are finding good bargains, especially in single family homes and flats,” said David Hanna, president of the Chicago Association of REALTORS®. “The city of Chicago condominium sales numbers continue to reflect a critical need for governmental agencies to review the growing disparity in the ability to finance a condominium purchase in the city. This affordable housing will become unaffordable and unattainable to many qualified first-time homebuyers in the city of Chicago unless existing federal guidelines, which do not take into account nuances of the local market, are modified.”
According to the IAR report, median home sale prices comparing May 2009 to the same month in 2008 were up in 37 of 98 Illinois counties reporting including Adams, up 16.2 percent to $99,900; DeWitt, up 12.0 percent to $106,250; Kankakee, up 17.8 percent to $149,000; Knox, up 4.1 percent to $76,000; Macon, up 0.1 percent to $85,050; McDonough, up 19.8 percent to $85,000; Rock Island, up 6.1% to $95,500; Stephenson, up 2.6 percent to $80,000 and Whiteside, up 6.5 percent to $90,450.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
The Illinois Association of REALTORS® is a voluntary trade association whose 53,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
You go sit in the corner - mommy, mommy I can't...
You have all probably heard those weird and mostly sick jokes. Well here is a real story, weird too.
If you are from around Stickney, you probably already know about the "House with no corners". The Stickney House (AKA Stickney Mansion) was built in 1836 by George and Sylvia Stickney who were followers of a form of Spiritualism which maintained that corners could trap evil spirits and even attract them leading to catastrophic ends. To avoid this, they built a house with no corners. Actually, it proved impossible to build the whole house without corners, but the Stickney's tried to make it a round as possible. Sadly, they found George dead in one of the few corners in the house with a terrified look on his face.
Sunday, July 12, 2009
10 deadly Mistakes Buyers Make When Purchasing A Home
1. Making an offer on a home without being prequalified.
2. Not having a home inspection.
3. Limiting the search to open houses, ads, or the internet.
4. Choosing a real estate agent who is not committed to forming a strong buisness relationship with them.
5. Thinking that there is only one perfect house out there.
6. Not considering long-term needs.
7. Not examining insurance needs
8. Not negotiating a home protection plan.
9. Not knowing total costs involved.
10. Not following through on due diligence.
2. Not having a home inspection.
3. Limiting the search to open houses, ads, or the internet.
4. Choosing a real estate agent who is not committed to forming a strong buisness relationship with them.
5. Thinking that there is only one perfect house out there.
6. Not considering long-term needs.
7. Not examining insurance needs
8. Not negotiating a home protection plan.
9. Not knowing total costs involved.
10. Not following through on due diligence.
If you are a veteran - now is the time to buy
It can hardly get better than today to buy a home for those who qualify to get a VA loan. You can buy with no money down at an interest rate which is below the market rate and you do not have to pay mortgage insurance. This adds up to hundreds and hundreds of dollars of monthly savings compared to everybody else. You can also get up to $8,000 back after you close to do whatever you want: renovate, buy a big screen, get new furniture or just save it for a rainy day. All you have to do is buy a principal residence (make sure you are not planning to sell it for 3 years) and you need to meet all of the qualifications. If you do, you will probably find that this is really a once in a lifetime opportunity.
www.propertysiteonline.com
www.propertysiteonline.com
Getting married and buying a home - Don't make this mistake today
Melody and Michael are getting married in September and they want to buy a home. They figure that they will get married and sell Michael's studio condo and buy a place that will be big enough for both of them. This should be no problem since they both have good jobs and good credit and anyway they are just trading up a little bit to a small starter home that Melody can buy on her own and in fact was planning to buy for herself until they decided to get married. and got busy with the wedding arrangements.
If they wait until after they get married, they will no longer be eligible for the $8,000 tax credit because Michael is not a first time home buyer. If Melody buys before they get married, she will qualify for the first time buyer credit. So if they don't want to miss out on the credit they need to act now.
I know, I know, it's possible that one of them will get the jitters at the alter and they won't get married and then Melody will have a small starter home to herself. It's my scenario so they got married and lived happily ever after. THE END
If they wait until after they get married, they will no longer be eligible for the $8,000 tax credit because Michael is not a first time home buyer. If Melody buys before they get married, she will qualify for the first time buyer credit. So if they don't want to miss out on the credit they need to act now.
I know, I know, it's possible that one of them will get the jitters at the alter and they won't get married and then Melody will have a small starter home to herself. It's my scenario so they got married and lived happily ever after. THE END
$8,000 First Time Buyer Credit - Time Is Running Out
Are you aware that the $8,000 first time buyer credit expires on Dec. 1 NOT Dec. 31 this year?
What is it?
An $8,000 refundable tax credit for first time home buyers provided under the American Recovery and Reinvestment Act of 2009. It is available only to first time home buyers who buy a primary residence between Jan. 1, 2009 and Nov. 30th, 2009.
This is a tax credit and not a tax deduction. It is a true dollar for dollar reduction on taxes owed.
The credit can result in a true tax refund. For example, a qualifying 1st time buyer who would normally get back zero on their 2009 taxes would receive a tax refund. Better yet, if you already filed and paid your 2008 taxes, you can file an amended return and the IRS will send you a check for $8,000 (you can't owe any back taxes, though).
What is it not?
It is not a loan and does not have to be repaid if the property is owned for more than 3 years. However, if the home is sold within 3 years it must be repaid.
Who is eligible?
Anyone who has not owned a principal residence in the past 3 years. Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000. A lesser tax credit is still available for home buyers with income above these amounts, up to $95,000 for individuals and $170,000 for joint AGI.
How do I get it?
Buy a primary residence and close on it before Dec. 1, 2009. There will be a scramble on over the next few months as people hurry to get in on this before it expires so don't wait until the last minute. If you do, you won't have as much selection and maybe less room to negotiate.
The IRS form used to request the tax credit is IRS Form 5405.
I will be giving all kinds of other tips about this and how you can get even more money to buy or reduce your payments. There will be tips and traps especially for people getting married and for veterans and investors and and and...
www.propertysiteonline.com
What is it?
An $8,000 refundable tax credit for first time home buyers provided under the American Recovery and Reinvestment Act of 2009. It is available only to first time home buyers who buy a primary residence between Jan. 1, 2009 and Nov. 30th, 2009.
This is a tax credit and not a tax deduction. It is a true dollar for dollar reduction on taxes owed.
The credit can result in a true tax refund. For example, a qualifying 1st time buyer who would normally get back zero on their 2009 taxes would receive a tax refund. Better yet, if you already filed and paid your 2008 taxes, you can file an amended return and the IRS will send you a check for $8,000 (you can't owe any back taxes, though).
What is it not?
It is not a loan and does not have to be repaid if the property is owned for more than 3 years. However, if the home is sold within 3 years it must be repaid.
Who is eligible?
Anyone who has not owned a principal residence in the past 3 years. Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000. A lesser tax credit is still available for home buyers with income above these amounts, up to $95,000 for individuals and $170,000 for joint AGI.
How do I get it?
Buy a primary residence and close on it before Dec. 1, 2009. There will be a scramble on over the next few months as people hurry to get in on this before it expires so don't wait until the last minute. If you do, you won't have as much selection and maybe less room to negotiate.
The IRS form used to request the tax credit is IRS Form 5405.
I will be giving all kinds of other tips about this and how you can get even more money to buy or reduce your payments. There will be tips and traps especially for people getting married and for veterans and investors and and and...
www.propertysiteonline.com
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