|
| |
Real Estate News and
Information.....
|
SHORT SALES AND FORECLOSURES ON THE RISE.
Are you one of the many out there today facing one of these
issues? Email us for a pamphlet and answers to your
questions or concerns.
Pamphlet request |
A turning point in
the housing market.
Says NAR forecaster Lawrence Yun, Ph.D.: “The market has shifted
fundamentally and people need to understand that the
double-digit rate of home price appreciation that they’ve been
used to is, with the exception of a few local markets, history.
Home sellers will have to adjust their price expectations and
sell their homes at more competitive prices. Rather than putting
a home on the market at a 15 percent higher price than last
year, sellers need to adjust their expected price..."
The median price range survey for the 1st Quarter of 2008 from
IAR Quarterly Housing Survey shows:
Cook County $258,500.00 up 1.4% from 2007
Du Page County $260,000.00 down 2.6% from 2007
Lake County $230,000.00 down 4.2% from 2007
|
|
How to help your client in a tight credit market.
While there is
home financing available for people with good credit, the
options are fewer if your credit score is less than stellar,
says Beth Llewellyn, CEO of the Partnership for Homeownership
and a HUD-approved homeownership counselor in an
online exclusive from the March Illinois REALTOR Magazine.
“If someone has a credit score below 680, they will pay more
private mortgage insurance on loans above 80 percent LTV,” says
Llewellyn. “Below 620 it’s going to be extremely difficult.
Mortgage insurance companies that typically do loans for people
with lower credit scores aren’t offering it without extremely
high monthly premiums. If the client has face-to-face
counseling, most mortgage insurance companies will lower the
cost of private mortgage insurance by half or two-thirds.”
-
Llewellyn suggests that the homebuyer should interview
lenders like they do when shopping for a car. Ask, what are
your estimated closing costs? What is your PMI rate if I
have a score that is 645? How can I lower that cost?
-
She adds that making a larger down payment can help. A
loan with just 97 LTV requires considerable private mortgage
insurance. Below 95 percent LTV, you can get a break and an
80 percent LTV loan is even better, until recently requiring
no PMI at all. But the down payment is not the only criteria
for PMI. Credit scores below 680 will now cost more than two
years ago. Many lenders including the USDA Rural
Development’s Guaranteed loan are now requiring a minimum
credit score of 660.
-
REALTORS should encourage their clients to look at their
credit prior to shopping for a home. Every year you can get
a free credit report at
www.annualcreditreport.com from three repositories:
Experian, Tran Union and Equifax.
-
It is the client’s responsibility to know where they
stand with their credit and to seek counseling to clean up a
credit report. The U.S. Department of Housing and Urban
Development has a list of counselors on its site,
www.hud.gov.
Return to Top |
|
The Cost of Selling without a REALTOR®: $31,800
Real estate professionals do more for sellers than make the
transaction easier. They make them money. In fact, the average
seller who uses a real estate professional makes 16 percent more
on the sale of their home than do sellers who go it alone.
That’s an average of $31,800 per home.
That’s one reason the level of unrepresented sellers has
declined steadily in recent years. Despite five consecutive
record-breaking years for home sales from 2001 through 2005, the
level of unrepresented sellers has dropped from a cyclical peak
of 18 percent of the market in 1997 to a record low of 13
percent in 2005, according to the
2005 National Association of REALTORS® Profile of Home Buyers
and Sellers.
Real estate professionals assist both sellers and buyers with
the services necessary for a successful real estate transaction,
especially pricing and marketing. Real estate pros can help
price the property accurately and market it successfully using
the variety of tools available today -- Internet, print, word of
mouth and more. REALTORS® know best how to prepare a home and
maximize value, provide broader exposure to the market and are
more likely to generate multiple bids than a seller on the own.
In addition, REALTORS® are experts in attracting qualified
buyers. A professional can show a home more objectively than can
a seller who may be emotionally attached to the home, and who
might become unnerved by prospective buyers’ critical comments.
The real estate pro also checks the financial capability and
bona fides of buyers before allowing them onto a seller’s
property
Return to Top |
|
Open House Safety
Are you
and your agents taking these necessary precautions?
On
the day of the open house, agents should arrive early to survey
the house to determine how to escape if the need arises. The day
of the open house, conduct a walk through to check the dead
bolts – unlock the doors and check the locking device position
for the door being unlocked. Always remember, though, the first
step to safety begins before you leave your home. Dress
conservatively and leave the jewelry at home.
Open House Checklist
(click for more information)
Return to Top |
|
SLIPS AND FALLS
Polished floors and stately staircases are sure to impress
buyers. But if someone slips and falls at the open house, you
could be held liable. To reduce the risk of injuries, think
twice before asking visitors to take off their shoes. Slippery
socks and unfamiliar surfaces are a dangerous combination. And
make sure pets are not present; they're a distraction and could
cause direct injuries.
Tips for a Safe Open House
(click
for more information)
Return to Top |
Return to Top
| |
|
