Extreme winter weather compounded the seasonal slowdown for home sales typical for January in Illinois. According to IAR's January 2008 release, total home sales (which include single-family and condominiums) were down 31.1 percent to 5,938 homes sold in January 2008 compared to 8,618 homes sold in January 2007. The Illinois median price in January was $189,400, down 5.3 percent from $199,897 in January 2007. “It’s been a challenging winter market given the severe snow and cold, but looking ahead to the spring market some positives to point to are low mortgage interest rates with 30-year fixed rates hovering around six percent plus a large selection of inventory to choose from,” said IAR President Kay Wirth. “Recently passed federal legislation that ups the loan limits for safe and secure loans from the Federal Housing Administration as well as Fannie Mae and Freddie Mac should give first-time buyers a boost as well. With these changing market conditions around the state, a buyer or seller’s best resource is a local REALTOR who can put local conditions in perspective and provide home financing and negotiation expertise throughout the transaction.”

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.

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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.

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)
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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)
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