JUMBO MORTGAGES DO EXIST

Good news for the so-called "jumbo" home loan customers: jumbo loans are back, but only for the well-qualified buyers who has lots of downpayment funds available, as much as 40%. And, of course, the borrower must be able to verify income and have a great credit score. This according to the Realtor Magazine.

Ready to move up to a more expensive property and wondering how you are going to finance the purchase? The answer is here for you. Talk to your favorite loan officer. If you need a recommendation for a loan officer, I can help with that!

Reminder: jumbo loans are loans over $417,000.

Home Buying Power Goes Up Up Up!

According to a report from Freddie Mac (Federal Home Loan Mortgage Association), the national average mortgage rates fell this week to a level not seen since 1971, nearly 40 years ago!

The national average 15 year mortgage interest rate is 3.57%.
The national average 30 year mortgage interest rate is 4.17%.

This is such important news for buyers to absorb; the same $250,000 loan at 4.17% interest rate vs. a 6% interest rate of not many years ago, is suddenly more affordable.

Here are the numbers: at 4.17% the monthly payment would be $1218.17.
at 6.00% the monthly payment would be $1,498.88.

That is a savings of $280.71!

How much does that potential home purchase you are mulling over actually COST you today? Low prices, low mortgage interest rates, low COST to the buyer.

If you have been sitting on the fence, trying to make that decision about buying a home, or maybe just refinancing your current mortgage, it's time to check in with your favorite Realtor or mortgage specialist, wouldn't you say?

New Illinois State Law for Homeowner Associations

Although I think it did not make many waves in the general news media, the Illinois state legislature passed an act that provides a road map for homeowner associations that are NOT a condominium. I suppose the reason I took note of it is because I own a townhouse that is not a condo, but it is under the governance of a homeowners association.

Illinois has had a condo law to guide condo associations in their governance for many years, but nothing for situations such as my community of 36 homes.

Please welcome to the world PA 96-1400, otherwise known as "Common Interest Community Association Act." It reads much like the condo act, so for those of us who love rules and regulations (and laws to help us know how to behave), this will not be unfamiliar language, and easy to understand.

Except for homeowner associations that have professional management to inform them of this new law (yes, it is in effect), it is mildly amusing to consider how few associations will even be aware of this new law. This blurb is my feeble attempt to pass it along.

Cheers to you, all you Boards of Directors!

What a Beautiful Moment!

I dropped in for a brief visit to one of my seller clients earlier this week. She told me something that simply made my day, and I promised her that I would tell the world about it on my blog. So here it is:

This seller has taken my advice to heart, advice on how to prepare the home for showing appointments. She told me that she has adopted the practice of scooping up any dirty kitchen dishes/gear and putting it in the car with her as she heads out to errands or appointments for the day, just to keep them out of sight of any last-minute requests to show her home. Now THERE's a client to be proud of! Find this squeaky clean kitchen in this home:



(You are encouraged to visit the other rooms in the house as well as the kitchen!)

Mortgage Interest Rates are a Gift - Accept It!

The Wall Street Journal announced on July 16 that the mortgage rate for a 15-year loan clocked in at 4.06%. Rates for a 30-year loan were quoted as 4.57%.

I don't have to tell anyone how incredible these rates are. Anyone who is still hesitating on making a home purchase, please consider that these rates will make any home purchase far more affordable than it is likely to be anytime in the future.

I personally remember mortgage rates being at 18% way back when. Time were tough back then for buyers AND sellers. Now? The buyers are in a terrific position with home prices being low, coupled with historically low mortgage rates. Sellers are perhaps not so happy with the price they are getting, but at least they stand a good chance of finding a buyer who can truly afford to purchase their home, given the selling prices and the mortgage rates. Buyers and sellers, rejoice!

Tenants, Do Your Homework!

I just inherited a client who is living a nightmare, through no fault of his own. His employer has relocated him to my community of coverage from out of state. The client leased a nice condo unit in a popular building. That was three weeks ago. This client is now being forced to move out. Want to guess why?

Yep, the condo owner is in foreclosure, and the unit is scheduled to be auctioned at sheriff's sale very soon.

Yes, I will be showing this client a rental condo or two, in addition to some rental apartments, but it was a moment of agent-client bonding when I sat at the computer with this client and checked the online recorder of deeds file for those condos we plan to visit.

Rental clients are a much larger percentage of our business in my broker's company of late, and the newest "wrinkle" in helping a tenant on the hunt for a new home is verifying the clear title of the condo for rent. And not just a search for foreclosure problems is needed; a condo owner can be putting his tenant at risk if the owner has not been paying the condo assessments as well. In this state (Illinois), the condo association has the ability to seize the condo unit for nonpayment of assessments, and arrange for its own tenant.

Just thought I should pass this along as a "heads up" to my colleagues out there across the country, as well as folks who are searching for a home to rent. Bad things CAN happen to good people (the tenant), but we can minimize the risk by taking a moment to verify a fact or two.

Ever Progressive- Evanston Planning Wind Farms

Sometimes I am just darned proud to call Evanston my home, and this is one of them. The City Fathers announced last week that they have set upon a path of planning for a healthy number of wind catching machines offshore in Lake Michigan (6 miles from shore). Although this is just in the initial discussion stage, already the naysayers have been heard from, complaining that such a facility would block the beautiful lake views of those on dry land. Point-counterpoint: anything that is 6 miles out from shore is hardly discernible from land, and if anything it will appear so small that it's not worth discussing (more or less).

We understand there will be lots of regulatory approval hoops to jump through, but it's exciting to think of this coming down our path, so to speak.

Yes, we take our Earth Day very seriously here in E-Town!

Excellent Deal at Museum of Science & Industry

April 19-23, busy? Clear your calendar and head on over to MSI (otherwise known as the Museum of Science and Industry). You must make the effort to get there if you can because those 5 days are free-admission days. What a deal that is! Normal admission for adults runs between $13-$15. And children 3-11 pay $9 or $10 (depending on your home address - Chicago vs. not Chicago).

Where? 57th Street at Lake Shore Drive in Chicago
When? 9:30 am - 4 pm
Why? All those really cool exhibits, like Science Storms and You, and the U-505 submarine.

Allow as many hours as you can spare. It's a full day's worth of exploration and learning, no matter what your age.

Chicagoland Market is Perking Up

According to the local real estate board for the suburban communities that lie due north of Chicago, the statistics for the first quarter of the year are definitely encouraging.

Single family home sales are up some 59% over the same period of time in 2009.

Homes under contract are up 60% for the entire Chicagoland region.

When I check the daily "hot sheet" for several of the communities that I cover, there are new contracts pending every day. And the price spread is large, from the modest condo unit to the multi-million dollar homes.

Here's hoping that the energy continues past the April 30 deadline for the income tax credit!

The Critters are Capitalizing on Stupid Human Tricks

According to a recent article in the Chicago Sun-Times newspaper, there is an interesting side effect of the growing number of foreclosed and vacant properties in the city (and suburbs as well, I suppose).

As a Realtor, I've been in my share of foreclosed properties the past 3 years, and it isn't much fun. Be careful to avoid walking directly under the falling ceiling plaster. Step around that hole in the floor. Oh, and don't let yourself trip over the bulging hardwood floor that rises a good 6 inches above the rest of the flooring. Hold your breath so the mold doesn't make you gasp for air. Never mind the paint that is peeling off the walls in sheets, just like wallpaper might do. Don't be alarmed if the basement concrete floor looks like the surface of the moon from the frost and freeze cycle of the ground underneath it. Obviously, don't expect to find a forgotten soda pop in the refrigerator, because there is most likely no refrigerator in the kitchen.

And keep your distance from the raccoons that have invaded the house. The abandoned houses are apparently an attraction for the wild creatures that share the city with us humans. Makes sense; it's shelter from the elements, protection from those pesky dogs that tend to chase them up a tree, and a virtual playground with all those stairs to climb, counters and cabinets to explore, windows to peer out of.

And they aren't satisfied to enter only the empty houses; the nice neighbors next door are getting visits from the 'coons as well now. Seems the fear of humans is decreasing in the animals, and they think nothing of squeezing through a partially open window to munch on the smorgasboard on the kitchen counter and the goodies stored in cabinets.

The City of Chicago is waking up to the problem and ramping up the distribution of traps to the owners of occupied houses who request this assistance in an effort to eliminate those late night run-ins with 4-legged fuzzy creatures in the kitchen, when all you wanted was another glass of warm milk and a cookie.
(Photo courtesy of Flickr Creative Commons - RubiconLaw)

Time is Growing Short for Tax Credit

As if you haven't been hearing and reading about this from every real estate agent and mortgage broker on the planet: in order to meet the first hurdle of eligibility for the income tax CREDIT for being a first-time home buyer, or a repeat buyer who has lived at least 5 consecutive years out of the past 8 at the same principal residence, you MUST be bound to a purchase contract for a principal residence no later than April 30. And that transaction must close no later than June 30.

Yes, April is heavy with deadlines this year. First is the April 15 tax filing deadline, then the April 30 contract deadline for the income tax credit. Add to that the Illinois real estate brokers renewal deadline of April 30, and you have one nervous Realtor on your hands here! But I'm still having fun, folks!

If you have any hope of meeting that April 30 deadline, give me a call or drop me a line. There is serious money in the tax credit, and definitely worth pursuing.

We Can't Hide the Truth From Clients

A few weeks ago, I posted on a social website (not on this blog) a brief reprise of a new study, widely cited in the media, that stated our American home VALUES will not return to their highest levels of a few years ago (think 2005 or so) until at least the year 2014, and probably 2019 in some extreme cases. My purpose in doing that was to raise awareness in buyers and sellers of real estate, awareness that "waiting for the house value to return to the 2005 level" means a looooooong wait for a seller. And for a buyer, it means that maybe this really is a great time to buy while prices are low, AS LONG AS the need for an owned home is present, and the buyer plans to be in that home for several years, minimally 4 or 5.

I was immediately chastised by a colleague in my market, someone whom I know on a personal level: chastised for demonstrating a negative message to the reading public, chastised for not pumping up the volume on a cheerful message about selling or buying a home right now as a fantastic plan. Period.

What is the quality of my service that I provide to my clients if I fail to educate them on the current market situation, and trends for the future? Is my job to sugar coat the facts? I don't think so. The facts might not be easy to accept, but the facts are real and do have an impact on a home buyer or seller as she makes choices and executes a plan to either buy or sell a property. To paint a picture that is only rosy instead of realistic does not speak well of me as a Realtor.

And that's all I wanted to say tonight. Other than I will do my job in the best way I know how - with honesty and integrity.

Realtors are Homeowners Too (and share the same challenges as everybody else)

Hurrah!

I received a letter from the County Board of Review recently, giving me the results of my property assessment appeal.

Along with 17 other owners in my townhome community, I traveled to the heart of the County's administrative building in Chicago's Loop last month to make a case for a reduction in my property assessment. The assessment that was delivered to all of us late last year reflected an unrealistic fair market value of our homes. It was rather absurd, really, overstating our value by some 28%.

One of our neighbors took the lead in organizing our mass appeal to the County, and spent many hours of his own time to investigate, interview, argue, and otherwise open the door for all 36 of us to plea our case to the people at the County seat who have the power to change an assessed value of a property. Thank you, Tom!

So today was the big day for me; I pulled an envelope from the mailbox on the front porch, labeled as coming from the County Board of Review. I couldn't wait to pull out that letter, announcing my property tax fate; relief! A 19.25% reduction in assessed value!

Life is good today. Now if only we could do something about the weather around these parts ...

The Dreaded Property Tax Deadline Approaches

Sorry to be the bearer of bad news, but the Cook County property tax first installment on the 2009 year is due this Tuesday, March 2. Be ready to monitor your payment made by your mortgage lender (if your lender keeps a property tax escrow account on your behalf), OR make the payment yourself: online at www.cookcountytreasurer.com, by mail, or at a branch of Chase Bank (or one of 200 other community banks that are listed on the Treasurer's website).

Consider this a public service announcement, if you would. No particular words of wisdom today, but advice to save you being charged a late fee!

How Many Comps Must be Reviewed to Choose a LIsting Price?

Answer - just one.

Scenario: owner wants to list and sell a condo unit. The conversation we had about the desire to sell centered around what it is worth vs. what will the right list price be.

There is a neighbor on market in the same condo building with a very similar unit on market and under contract, and under contract in less than 2 weeks! The average market time in this neighborhood for condos over the past 6 months is 130 days.

There's a lesson in there somewhere, and the lesson was all about pricing with the goal of getting it sold.

It is not always easy to let go of the dream of selling for top dollar in this lackluster real estate market (Chicago), particularly when it comes to condominiums. But when reality comes calling (as in "I MUST sell it this spring!"), letting go is the only way to go.

Even Uncle Sam Sez So

The years go by, and some things never change. Public opinion polls seem to repeat the news: the general public thinks very poorly of real estate agents as a profession. And I mean VERY poorly. Most people hold real estate agents in low regard. The reasons vary, but the result is truly unfortunate. An unrepresented seller or buyer of real estate can perhaps muddle through a transaction, but at a very high cost (both financial and emotional).

But it's not just ME trying to educate people on the value of finding and using a trusted real estate agent; Uncle Sam also "gets it." In a recent FHA e-newsletter (February 15, 2010), the notion of hiring an agent is promoted as the wise thing to do. To quote: "Most of the fears that buyers have about realtors are just plan false." And then this quote: "...your real estate agent's job is to represent your interest only. They want to get the deal done for you! If you are a happy client, you are likely to refer business to them for doing a good job." Sounds reasonable, right?

The article continues on to suggest that most folks simply don't understand how an agent's role can benefit them. So it seems the FHA and I are promoting the use of a licensed, ethical, and trustworthy agent. Sure, there are some less-than-stellar agents in the ranks, just as there are in any profession. Ever meet a teacher you thought was sub-par, or a doctor? You see my point.

Subscribe to the FHA newsletter for free, read the weekly article, and learn. To find a terrific agent, start asking your friends and neighbors who they would recommend, based on personal experience. Just because a local agent has spent lots of dollars on marketing their brand does not translate into good service to you. It's the person who can serve your needs, not the face in a newspaper ad or on a grocery store cart.

It's All About Trust in This Business of Real Estate

It all started so simply. I had sent out a "just listed" postcard on a rental property last summer. One of those cards went to a neighboring home close to the new listing. The resident of that home passed along the postcard to a coworker who was searching for a rental. That seeker called me to see the property, I showed it to her and her spouse. It was not a fit for them, but I offered to help them find a place they could call their next home. We worked hard together, and they landed in a condo rental that thrilled them. That one modest rental client has now recommended me to three coworkers in only a handful of months' time; two are rental seekers, and the third will be a condo for-sale listing. Each of this second wave of clients has recounted the enthusiasm that the first client couple has for my service to them. The newly referred clients are anticipating that their experience with me will be a repeat of that enthusiastic result. They are trusting me to deliver. That first client couple are trusting me to provide the same level of service to their friends. Kind of humbling.