Mar. 5, 2012 - Report from MRED on What is Happening Regarding Home Sales

Houses are selling and here is a report from MRED, the Midwest Real Estate Data that real estate brokers access to view all the listings on the market.

The weekly scorecard for all property types for week 03/01/12:

Total Active Listings:

            Last Week: 105,713       This Week: 105,839

New Listings/Last 30 Days:

            Last Week: 21,402         This Week: 22,301

Under Contract/Last 30 Days:

            Last Week: 12,076         This Week: 12,647

Closed Listings/Last 30 Days:          

            Last Week: 5,793           This Week: 6,352

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Mar. 2, 2012 - Great Infographic on House Sales in the United States

For information on your local real estate market, please call or email me. Also feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Mar. 1, 2012 - Top 10 Organizing Myths

Top 10 Organizing Myths

I love lists. And the list below is a wonderful overview of the top 10 organizing myths many organizers hear during their career. I've adapted the list below based on one created by Hazel Thornton - Organized for Life as part of her "Busting the Top 10 Organizing Myths". 

1&2. Neat equals Organized & Messy means Disorganized - Finding a system that works for you is what is important. I've worked with many clients who have messy desks or rooms and know EXACTLY where everything is. And, I know for a fact that some very organized people, like myself, are SO organized yet we sometimes can't remember where we put things "and it was such a clever place to hide it!" 

3. Multi-tasking saves time and increases productivity - While I admit I multi-task as a survival tactic, it's not always very productive. Studies show that people who multi-task are actually LESS efficient than those who focus on one project at a time. Two great books to read about better time management is Getting Things Done, by David Allen and Time Management From the Inside Out, by Julie Morgenstern. 

4. The perfect gadget will get you organized - I use the VISION method when working with clients; Visualize, Implement a plan, Sort, Identify a home, Obtain storage, Note progress. Storage or gadgets or containers are toward the end of the organizing process. While purchasing the perfect gadget or container is fun and creative, creating a vision for your space and sorting (80% of the process) is most crucial. 

5. Disorganization is a character flaw -  Disorganization is usually due to using a system that doesn't fit your needs or style. Getting organized is more about finding the system that better suits you and thinking "out of the box". Disorganization is often cyclical and a result of life events such as illness, moving, new job, or new baby. Getting organized can be taught and skills shared to adapt to new spaces and life changes. 

6. Organized people schedule every minute of every day - I learned a great lesson by my husband, business coach and 'chief possibility officer', James Lynch. He stressed how important it was to schedule all your appointments, projects and tasks, even if you're the only one participating. However, you should also block off unscheduled time each day for when life "just happens", such as sick children or unscheduled phone calls that happen during the day. If those unscheduled blocks of time aren't needed, great! you have extra time to take a long walk, get a cat nap or have a cup of tea, a reward for getting through the day. 

7. You should touch each piece of paper only once - Yes and no. When your mail arrives, you should sort it immediately; shred or recycle junk mail, open bills, toss the outside envelope and put items in either Action File or To Be Filed. Later you will handle the bills during a time you blocked off during the week for filing and paying bills. So I guess, that's touching it twice! 

8. Hiring a professional organizer is expensive - So the question is really, what is the cost of having disorganization in your life? Can you really afford (time & money wasted searching, replacing and purchasing new items as well as the stress involved) not to get organized? 

9. A professional organizer will make you get rid of things - I can't tell you how often clients say, "if it was up to you you'd toss it all, right?". Well, the bottom line is, YOU'RE in charge. A professional organizer is there to motivate, guide and suggest. But ultimately you agree or disagree. It's your "stuff". Organizers will encourage you to only keep what you love or need because in the end if you make everything important, then nothing is important. The space and how you feel in it is the goal.

10. Only disorganized people need an organizer - Many of my clients are quite organized but sometimes need extra help to get through a challenging period in their life where their space has taken a nose dive and they need to re-group. Sometimes, clients simply need an objective perspective on how to better use the space, suggestions on more efficient organizing systems or resources for supplies.

So consider me as your resource for getting organized. Whether you need hands-on support or a quick resource, know that I'm available. I can be reached by email, Facebook, Twitter, LinkedIn and my website. And, you can get inspired by visiting me on Pinterest as well!

Riv Lynch
Organizer, Speaker, Writer
Sacred Spaces Consulting, Inc.
www.sacredspaceshome.com
riv@sacredspaceshome.com

Thanks Riv for a great post and please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Feb. 22, 2012 - How Does A Short Sale Effect Your Credit Score?

How Does a Short Sale Effect Credit?

A lot of homeowners wonder whether putting up their property for a short sale is better than just allowing the financial institution to foreclose it. Some property owners even consider filing for bankruptcy in order to be relieved of their debts. Foreclosure and bankruptcy are just two of the options you have if you are experiencing a severe financial crisis. However, these two options have considerable effects on a lot of important factors in an individual’s life. On the other hand, a short sale, while still affecting these factors, has a significantly lesser impact. Deciding on whether to just allow your property to be foreclosed, to file for bankruptcy, or to perform a short sale depends ultimately on your choice as well as the value of your property. This is why it is important that you learn more about the benefits and the advantages of a short sale VS foreclosure or bankruptcy.

Factors that are affected by a Short Sale and Foreclosure
In order to understand whether a short sale is better than foreclosure or bankruptcy, it is vital that you know the answers to the question: “How does a short sale impact credit?” It is equally important that you also learn the effects of foreclosure on credit. Going over the benefits and the advantages of a short sale over foreclosure will help you decide on the best option for you. While the main question that you should ask is: “How does a short sale impact credit?” you should also take some time to review the other factors affected by performing this type of sale on your property.

Here are the most important factors affected by a short sale:
• Your credit score
• Your credit history
• Future loan application
• Deficiency liability
• Deficiency judgment
• Deficiency amount
On the other hand, foreclosure affects the following factors:
• Your credit score
• Your credit history
• Your credit reports
• Future loan application with a mortgage company
• Future Fannie Mae loan application for a primary residence
• Future Fannie Mae loan application for a non primary residence
• Deficiency liability
• Deficiency judgment
• Deficiency amount

Short Sale Effect on Credit Score
Now that you have a basic understanding of the factors in your life affected by a short sale and foreclosure, it is time that you compare the advantages of the former over the latter. The first question that you should know the answer to is: “How does a short sale impact credit score?”
A short sale, while still affecting your credit score, has a significantly lesser impact compared to foreclosure. Without any records of late payments, your credit score may only be impacted with a fifty point deduction. Late payments have one of the most significant negative effects on credit scores. The average points that you may lose over late payments are the following:
• 40 up to 110 points for late payments of 30 days
• 70 up to 135 points for late payments of 90 days
Foreclosure, on the other hand, can lower your credit score for more than 300 points. If your home has been foreclosed by the financial institution, this is going to stay on your credit record for seven years

Short Sale and Foreclosure Effect on Credit Reporting
The next question that you should ask is: “How does a short sale impact credit history?” If you put up your property or your home for a short sale, this is not going to be listed as an item on your credit history. After a successful short sale transaction, the company handling your mortgage will list the sale as “Settled in Full,” or as “Paid as Negotiated,” or as “Paid.”
A foreclosed property or home will be detailed on your credit history and will remain there for 10 years. This is also going to be permanent in your county’s public records.

Short Sale and Foreclosure Effects on Employment
Now that you have answered your main question of “how does a short sale impact credit?” it is time to take a look at its effects as well as the effects of foreclosure on your employment. A short sale, as discussed above, does not have a credit reporting item. This means that it usually does not have any bearing on your current or future employment. On the other hand, foreclosure, as it is detailed on your credit reports and stays on your history for a long time, has a great impact on your current and future employment. Most employers check the credit history of their employees and their applicants. This means that if you are currently employed, your employer has the right to either re-assign you or even terminate you.

Short Sale and Foreclosure Effects on Future Loan Application
You might be wondering “how does a short sale impact credit and does it affect future loan application? The answer is yes, but only to a minimal. A future loan application with a mortgage company does not require you to declare that you have performed a short sale on your home. On the other hand, foreclosure affects the interest that you will receive in qualifying for a loan with a mortgage company. If you are going to apply for a primary residence backed loan with Fannie Mae, you will be eligible to do so after two years. With a foreclosure, you would have to wait for more than five years to qualify. After a successful short sale transaction, you also would be eligible for a non-primary residence backed loan with Fannie Mae after two years. With foreclosure, you would have to wait for seven or more years.
These are the answers to your question: “how does a short sale impact credit?” Now that you also know its benefits and advantages over foreclosure, you can now decide on whether putting up your home for a short sale or allowing it to foreclose is the best option for you. It is always advisable to contact a Short Sale Specialist Realtor in order to better understand the ins and outs of a short sale. Courtesy of Mike Linkenauger   
First Coast Realty Associates

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Feb. 22, 2012 - Common Short Sale Misunderstandings

6 Common Short Sales Misunderstandings:

Short sale transactions can be an excellent choice for homeowners who must sell and who owe more on their homes than their current values. Unfortunately, there are numerous misunderstandings regarding short sales, and it is extremely important to understand the proper procedures and best practices in this process should you choose this path for your homeowners/sellers.

Misunderstanding # 1: THE LENDER/BANK WOULD RATHER FORECLOSE THAN CONSIDER A SHORT SALE TRANSACTION.

This is likely the most common misunderstanding. In reality, banks DO NOT want to foreclosure on properties, as the foreclosure process is rather costly and lengthy. Banks, lenders, investors, and even the Federal Government have stated publicly if a homeowner is qualified for a short sale, the transaction needs to be considered, based upon:

• FINANCIAL HARDSHIP: there is a current hardship causing the homeowner to have trouble affording his mortgage.

• MONTHLY INCOME ISSUES: The lender will want documentation showing that the homeowner cannot pay the monthly payment or will soon not be able to afford the monthly payments.

• INSOLVENCY, The lender will want proof that the homeowner does not possess

significant liquid assets that could pay down the debt of the mortgage.

Misunderstanding # 2: YOU MUST BE LATE ON YOUR MONTHLY PAYMENTS TO BE ELIGIBLE FOR A SHORT SALE.

While this may have been true in the past, today, lenders/banks are interested in verifiable hardships, monthly payment shortfalls, or pending monthly payment shortfalls and insolvency.

If the homeowner meets these requirements, and is unable to afford his mortgage, act immediately. Any delay may limit the homeowner’s options for a short sale transaction.

Misunderstanding # 3. IT IS TOO LATE TO NEGOTIATE A SHORT SALE TRANSACTION BEFORE THE FORECLOSURE.

This misunderstanding probably hurts the homeowner the most. Many mortgage holders do not understand that foreclosure is a long process, and there is time to evaluate options and potentially make decisions that could result in a better outcome.

Misunderstanding # 4. LISTING A PROPERTY FOR A SHORT SALE IS AN EMBARRASSMENT TO THE HOMEOWNER.

It is quite understandable that homeowners may have reservations about going public regarding their financial distress. Recent predictions, however, indicate that one in eight homeowners in the U.S. is currently behind in their payments.

Misunderstanding # 5. SHORT SALE TRANSACTIONS ARE IMPOSSIBLE AND NEVER GET APPROVED.

This is inaccurate. Short sales are becoming more streamlined and lenders have become more knowledgeable and willing to work with homeowners to complete these types of transactions. Real estate professionals are also becoming better educated in the short sales process.

For example, realtors with the “Short Sales Certified” or “SSCertified” designation have received extensive training in methods to help homeowners in distress and how to successfully process short sale transactions. There are absolutely no guarantees in any distressed situation; however, the short sale transaction process has become more efficient, while timelines for approval have also become much shorter.

Misunderstanding # 6. PROSPECTIVE PURCHASERS ARE NOT INTERESTED IN SHORT SALE TRANSACTIONS.

This is a major myth and homeowners hear this frequently, oftentimes causing them to be wary of listing their homes as short sales. This is not accurate. In fact, many real estate professionals receive phone calls/emails from prospective buyers who only want to look at short sales or foreclosures.

For prospective buyers, short sales and foreclosures are synonymous with, “wise financial transactions”. International buyers are targeting these distressed assets as well. Those real estate professionals who choose to obtain the necessary knowledge to become proficient in the short sale transaction process will benefit.

Courtesy of James A. Browning REOInstituteColorado, MRE

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Feb. 22, 2012 - Rents Rising Rapidly

Whether you are putting off buying a home and renting now or looking to buy an investment property, now is a great time to call me.

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Jan. 24, 2012 - Getting a Home Loan

10 Surprising Reasons You Can’t Get a Home

Getting a home signifies financial security and an investment for the future. Owning a home is part of the American Dream. There are some surprising reasons why you can’t get a home.

1.     Down Payment – You may have the required 10%-25% on the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.

2.            Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.

3.            Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.

4.            Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.

5.            Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.

6.            Inspection – More and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.

7.            Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.

8.            Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.

9.            History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.

10.        The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.

If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Jan. 23, 2012 - January 2012 Home Owner Tips

Jan. 14, 2012 - Market Share for 2011 for City of Highland Park Illinois

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Jan. 14, 2012 - People are buying homes and getting mortgage!

People Are Buying Homes AND GETTING MORTGAGES!

Many believe that very few houses are selling and that almost no one can get a mortgage. We want to let everyone know that neither of these assumptions is true. Recently, the National Association of Realtors (NAR) released their Existing Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren’t selling just isn’t true.

Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.

There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe.

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Jan. 14, 2012 - FHA Mortgages and Being Assumable

The Power of Assumability


One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when the FHA homebuyer of today is looking to sell his home, a qualified purchaser can “take over” their loan.

Most people believe that interest rates will return to a “normal” range (between 6.5% and 7%) in a couple of years. When you assume a mortgage, the terms remain the same. This means that a buyer five years from now can enjoy a 4 – 4.5% mortgage by assumption rather than the 6.5% – 7% mortgage they would get without it. Since most people buy homes based on how the monthly payment fits into their personal monthly budget, this is extremely impactful.

As an example, a $300,000 loan at 4% today carries with it a $1,432.25 principal and interest payment on a 30 year fixed mortgage. If offered for sale in five years, the purchaser could assume the $271,858.56 balance with the same $1,432.25 payment and remaining term of 25 years. The total payments over the 25 years would be $429,675.

Compare that to a new $272,000 loan at 6.5% for 25 years, which would carry a monthly payment of $1,836.56 (over $400 more a month than the assumption and more than $120,000 more over the 25 year term).

At 6.5% for 25 years, to wind up with the same payment as the assumed mortgage, our borrowers would only be getting $212,000…$60,000 LESS!

The point here is that, when rates go up, homes with assumable mortgages will have more value and will sell at higher prices because they are more affordable. As an additional bonus, the closing costs on assumable mortgages are significantly less (especially here in New York where NYS Mortgage Tax is such a large component of closing costs).

The borrowers must be credit-worthy of course (have good credit, qualifying income, and necessary assets to close), but they would have to be credit-worthy to get a new mortgage too!

Besides the multiple other reasons to obtain an FHA mortgage (low down payment requirements, extended income ratios, lower credit scores, and easier sourcing of funds), there is another perk. In the future, there is a good chance that you may be able to sell your home for more money because of the FHA loan’s assumability.

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Jan. 9, 2012 - Great Real Estate Advice

I just got this great real estate advice in an email from a mortgage broker I like.

“The other day a friend of mine told me he was going to cancel the sale of his home because at the last minute the buyers said they wanted him to leave the dryer. I asked him if the dryer had been handed down as an heirloom or if it was gold plated. He said it was just the principle of the thing, "We already had a deal, they should have negotiated that in the beginning."  

Don't sweat the small stuff! I know it's hard to do, but always keep in mind that when you sell a home it's a business transaction. That's it, nothing more, nothing less! 

As you are buying a home, keep in mind that for each $1,000 you negotiate, it's about $6 per month in payments. I have heard of many deals falling apart over what would equate to about $12 per month. I'm not saying don't worry about your money, I'm just saying don't sweat the small stuff!”

Great advice!

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Dec. 20, 2011 - Don't Make These Mistakes When Pricing Your Home

5 Mistakes When Pricing Your Home

When it comes to selling your home, your asking price can make all the difference. Price it right and it will sell quickly - and you can do so easily by avoiding these five mistakes most people make when pricing their home.

Mistakes when pricing your home #1

Basing your price on another home’s asking price

Basing your home’s asking price on what the neighbor around the corner is asking can be a big mistake. Homeowners are able to ask whatever amount they want for their home.

Your neighbor might be asking $100,000 more than they should. If you are basing your price on that amount, your chances of selling will decrease. You should base your price on what a similar home has recently sold for.

Mistakes when pricing your home #2

Basing your price on recent renovations

If you bought your home two years ago and installed a new kitchen worth $50,000, that does not mean that you can price your home for an extra $75,000. Renovations do not necessarily mean a 100% ROI when you sell, especially if the renovation was specific to your taste.

Mistakes when pricing your home #3

Basing your price on how much money you need

This is a very common mistake home sellers make. Many sellers have already bought a new home and think, I need to sell my home for $X in order to pay for my new home or perhaps a seller might not have a lot of equity in their home and they think, I need to sell for X in order to make a profit on my home.

However, buyers are not concerned with a seller’s personal situation. Buyers only want to buy a home that is fairly priced, based on what other homes have sold for in the neighborhood.

Mistakes when pricing your home #4

Basing your price on a different type of home or a home in a different location

If you own a semi-detached, you should not be comparing your home with a detached that sold around the corner. You have to compare apples with apples.

The same goes for the neighborhood that you live in: You can’t compare your detached home with a detached home in a better neighborhood.

Mistakes when pricing your home #5

Starting with a “Let’s Try This” price

By far the most common mistake homeowners make is starting at a higher price first. Saying “let’s ask for $25,000 more and see what happens” can be a big mistake.

If you know the value of your home and you know how much money you should realistically receive from the sale of your home, then you should price your home close to that price and expect to sell your home close to that price.

By overpricing your home at the start of your sale, you eliminate many buyers who will see that your “inflated price” is out of their budget, and they’ll move on to another home.

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Dec. 20, 2011 - Thinking About Downsizing This Coming Year?

Thinking About Downsizing This Coming Year? 

The organizational benefits of downsizing can be very rewarding. You can save time, restore order, relieve stress, free up space and, perhaps most importantly, save money. 

While the process may seem overwhelming to you, here are some tips that will help you accomplish the task. 

1.    Try not to focus on the entire house at once. Take on one project at a time and don’t allow yourself to get overwhelmed. If the room itself is too much to take on, focus on one area at a time.

2.   Evaluate what you have. If you haven’t used or thought about something in over a year, it’s probably safe to get rid of it. Craigslist and eBay are great online tools that will help you cash in on things that you don’t need anymore. Or donate items you no longer need.

3.   Properly store irreplaceable items. Meaningful items such as old photos, yearbooks, wedding dresses and christening gowns should be properly stored in sealed containers. You may even want to go one step further with old photos and convert them to a digital format to ensure that they will always be safe.

4.   Stay Positive. Getting rid of items that remind you of your past can be an emotional process. At first it might seems difficult to part with certain things. Concentrate on what’s important to you and visualize what your home will look like when you have de-cluttered and re-imagined your space. 

If you would like my help in coming to a decision on downsizing, please don’t hesitate to call me. I have names of stagers, de-clutterers and junk removers as well as storage plans for the things you wish to keep safe. 

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Dec. 12, 2011 - Missing Generation Y Home Buyers

Where Are the Generation Y Home Buyers?

Many buyers are delaying a decision to purchase a home because of the volatility of the real estate market. There is no larger category exhibiting this behavior than those of  Generation Y. To define this segment of the population, we go to Wikipedia:

Generation Y, also known as the Millennial Generation (or Millennials), Generation Next, Net Generation, or Echo Boomers, describes the demographic cohort following Generation X. There are no precise dates for when the Millennial generation starts and ends, and commentators have used birth dates ranging somewhere from the mid-1970s to the early 2000s.

Does this generation wish to own a home?

Yes. A recent survey completed by Trulia shows people between the ages of 18-34 still believe in the concept of home ownership. 65% of those surveyed said “their American Dream includes owning a home”.

Where are these adults living?

Recent research form John Burns Real Estate Consulting shows the number of adults living with their parents has dramatically increased over the past eight years. Below is a graph showing the numbers: 

Bottom Line

Generation Y believes in homeownership. Yet, they are delaying the decision to purchase a home of their own. When they do decide to buy, they will impact the housing market in a big way. Courtesy of KCM Blog.

Nov. 18, 2011 - 5 Great Things About Homeownership

Nov. 9, 2011 - Belief In The Value of Homeownership

Americans Still Believe in the Value of Homeownership

Last week, Fannie Mae released their National Housing Survey for the third quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Here are some of the interesting findings from the most recent report:

Most Important Reasons to Buy a Home

The study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:

▪   It means having a good place to raise children and provide them with a good education

▪   You have a physical structure where you and your family feel safe

▪   It allows you to have more space for your family

▪   It gives you control of what you do with your living space (renovations and updates)

When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. There is no doubt that families must justify a home purchase from a financial point of view today. However, the reasons they actually buy are the same reasons our parents and grandparents purchased their home – to create a better lifestyle for their families.

The Home as an Investment

Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:

▪   64% of the general population (and 69% of homeowners) believe that homeownership is a ‘safe’ investment.

▪   55% believe that homeownership has more potential as an investment than any other traditional asset class.

▪   68% think that now is a good time to buy a home

Rent vs. Buy

We are always interested in the difference people see in renting vs. owning.

▪   63% of renters have aspirations to someday own their own home

▪   70% of renters think that owning is superior to renting

▪   96% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 83% of renters see renting as a positive experience (15% see it as a negative experience)

▪   97% of homeowners live in a single family residence while 53% of renters live in a multi-unit building

Bottom Line

Even in these difficult times, Americans still realize the value of homeownership both from a financial and social standpoint. KCM Blog

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Oct. 1, 2011 - Percentage Of Homes Under Water

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Sep. 30, 2011 - Rates Stay Low, But Will Costs go Up?

Rates Stay Low, BUT Will Costs Go Up?

 

We are enjoying extremely low interest rates, for sure. With the global economy, the national economy and unemployment where they are, no one is predicting a dramatic change in rates any time soon. BUT, on Monday, the Obama Administration floated out some interesting proposals they are considering through the Acting Director of the Federal Housing Finance Agency (FHFA), Edward DeMarco. It appears that two significant changes in housing financing are on the table.

You should know that FHFA is the new regulator that is overseeing the restoration of viability of Fannie Mae and Freddie Mac. They are charged with reducing the risk on loans delivered to the GSEs in order to protect the U.S. taxpayer.

In a speech this past Monday, Mr. DeMarco mentioned two potential changes:

Increasing the role of the private sector to lessen the risk held by the public sector.

The method mentioned was increasing the insurance coverages assumed by the PMI (Private Mortgage Insurance) companies. One result could be higher insurance rates for loans where customers put less than 20% down. The second wrinkle is potentially more damaging…the idea that PMI coverage may be required on loans with 21%-25% (maybe even 30%) down! Clearly, this is an attempt to get more fee income to the MI companies to entice them to remain viable and continue to serve those with less than 20% down. Regardless, the net result is that more people will have to pay more money for private mortgage insurance. “How much?” and “To what extent?” is yet to be defined; however, more costs to more people is bad.

Adjusting fees.

Recognize that the GSEs charge fees. Explaining what they are and why they exist is a topic for a different day. Suffice to say, today, fees are fairly standard geographically speaking. Mr. DeMarco is talking about adjusting the fees (i.e., increasing them) for areas that have proven more risky. This proposal means the hardest hit areas will have the most difficult time recovering because the increased fees always get passed on to the consumer. Rather than “spread the risk”, FHFA is talking about punishing the defenseless.

The predictable outcome of these “strategies” is higher costs to the consumer which makes buying a home more expensive. As costs go up, desire to buy goes down (as does the borrower’s ability to be approved for a mortgage).  Courtesy of KCM Blog

Message: Buy sooner rather than later! 

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.

Sep. 28, 2011 - Selling? Waiting Until the Spring Makes No Sense

Selling? Waiting Until the Spring Makes No Sense

Late last year, banks were warned that they needed to guarantee that the paperwork necessary to start a foreclosure process on a family was both accurate and complete. Since then, the banks have slowed down the foreclosure process while they re-examined their procedures. They are now confident that all the required documentation is in order. We are currently waiting on a settlement between the banks and the state attorneys general which will establish what penalties will be assessed.

Once this settlement is reached, the banks will again move forward on many homes which are currently stalled at some stage in the foreclosure process.

How many homes are we talking about?

There are millions of homes in this category. Calculated Risk quantified the situation:

“There are a large number of seriously delinquent mortgage loans in limbo waiting for this settlement. According to LPS, at the end of August there were about 1.87 million loans seriously delinquent and another 2.15 million loans in the foreclosure process. This is only down slightly from a year ago when 4.4 million loans were seriously delinquent or in-foreclosure. Once the settlement is reached, the pace of foreclosures will pick up sharply.

The pace will “pick up sharply”.

Bottom Line

As more foreclosures come to the market at discounted prices, there will be greater downward pressure on all housing values. Waiting for the spring selling season to put your house on the market may not make sense this year. The increase in demand may be overshadowed by an increased supply of distressed properties. Courtesy of KCM blog

Please feel free to check out my website at http://JudithWeiner.com to learn more about the buying and selling process regarding real estate or give me a call at 847-207-3444 if you want more information regarding homes for sale, listing your property or rentals in the Highland Park, Glencoe, Winnetka, Wilmette, Deerfield, Highwood, Northbrook, Lincolnshire, Riverwoods, Buffalo Grove, Gurnee, Lake Forest or surrounding Chicago suburbs in IL. You can also email me at Judith@JudithWeiner.com.