RealEstateBuyMe.com

We often forget about the human side of foreclosure. I rarely think about forclosed homes as once being full of life and family anymore. They have become 'routine', just part of the normal market that I see everyday. This is a great story sharing the human side of foreclosure that I hope you will enjoy.

It's a sad part of our job & makes me sometimes wonder 'who really lived here?' Thanks to Linda Humphrey in Nevada for sharing this story. 

Conversion Rate means?

Months Supply of Inventory says?

Why does this matter when you are selling your home?

Well, the 'Absorption Rate' is the real estate markets ability to absorb or sell all of the Schaumburg Homes for sale in a given amount of time. The ability for the Absorption Rate and market to either decline with many buyers in the marketplace OR to increase when buyers are few in numbers. Each month the number changes based on homes coming on the market, going under contract and then finally closing.

Is this a 'Buyers Market' or a 'Sellers Market'?

Currently, we are still in a 'Sellers Market' according to chart trends. Finally, our inventory of Schaumburg Homes is stabilizing and the lower the housing inventory, the better the market conditions are for sellers. Meaning that buyers will begin to compete for homes in certain price ranges. The economic principle of 'supply and demand'.

A 'Buyers Market' is just the opposite and what we have been experiencing for the last few years. Increased numbers of Schaumburg Homes on the market all competing for the same small pool of buyers creates a 'housing glut'.

With more competition in the marketplace, home prices are forced downward. Foreclosures also force prices in communities downward. The banks are often generating '30 day pricing' which means they want the house under contract in 30 days - period. What's the lowest price that will get the job done and get this house off the market! In the end it's good for buyers, not for sellers.

In a 'Buyers Market' it will take longer for your Schaumburg Home to sell because of the decreased amount of buyers. Time on the market is increased so sellers should plan accordingly for an extended market time. Each communities market time will be different.
 
 
Want to know the current market trends of your community? I can provide you with this added market perspective as it makes a difference on how your Schaumburg Home is marketed effectively. The 'Conversion Rate' shouldn't be kept a secret because it plays a pivotal role in your home selling strategy.

 

Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Schaumburg IL Homes - What types of financing was used?

While compiling this year end report for 2011 the total sales in Schaumburg IL I noticed a few striking differences between Schaumburg single family homes and multi-family home sales.

Two completely different animals!

Depending on what type of property you have will figure into your buying or selling strategy. Types of financing that buyers use have different criteria and variables that sellers must pay attention too.  On FHA purchases the home must have minimum standards to protect the buyer from unknown future mechanical breakdowns.  When the appraisal is done on these properties the appraisers check the attic spaces, crawl spaces and any basement areas not readily available.  This has never been done before but it's been a trend since the last half of 2010.  

For foreclosures in Schaumburg, the furnace and water heater must be operational and the water must be turned on.  This eliminates some foreclosures immediately that need serious help from either being vacant, lack of winterizing or seller damages.  These poor homes must be bought with cash and then refinanced when the home meets lender standards.  Frequently you'll be getting a dream deal but you'll be in for a boat load of work and you better know the business side of a hammer!  These homes are usually not for the first time home buyer.

So with Schaumburg Homes the largest portion of sales has gone conventional financing.

If your Schaumburg Home needs a new roof, forget about FHA financing as this is also considered a mandatory requirement.  Life expectancy of at least 5 years is required for all roofs.  

With Schaumburg Multi-Family Homes the largest portion of sales was conventional andcold hard cash coming in neck and neck. Who says cash is dead? Well I'm sure it was me at one time as I can't remember meeting so many buyers with cash in their hands and at their disposal!

It clearly has to do with the price differential between the Schaumburg home and condo pricing.  Many more condos are available below $150,000 than homes.  Still most first time home buyers will be using the FHA financing method because of the lesser down payment required (3.5%).  But, conventional financing (5% down is now available) might be better for you as the mortgage insurance premiums are lower and will not be for the entire 30 year life of the loan.

Another important note to remember is not all Schaumburg complexes or subdivisions are approved for FHA financing.  This would include townhome styles, quads, manor homes, coach homes and a variety of others.  Please see if the area you are interested in is FHA approved.  Many a heart has been broken with a first time buyer when they realize the complex they love will not accommodate their FHA financing.

If you are thinking of buying a Schaumburg Home, please consider me as a 'buyers agent' for your purchase. An experienced veteran, like myself, can steer you through the 'mine field' on your way to your first or tenth home!

If you are researching this information to possibly sell your Schaumburg IL Home, please email or call to discuss the advantages of my marketing abilities and getting your home turned to 'SOLD'.

Source: MRED

Real Estate Market Update - Northwest Suburbs - December 2011

Well last month I reported that I felt the market was slowing down but I was still quite optimistic for the end of the year sales. At the final tally, we did well over the 2010 sales year. Sales are above those levels and I think we can't be stopped from going forward!

The graphs show that December sales have been up for most towns in our area. And even with the towns that came in under 2010 sales levels, I feel it's just a matter of time before the market shakes off the cob webs and gets back down to business.

Another good statistic is when the market is steady (or going up) with the number of homes that go under contract each month. Currently we are between 5 to 11.5%.

The inventory level (absorption rate) has also held steady but we've just really begun the winter months which has been a traditionally slower sales time. If the inventory increases going into the spring market, prices will surely decline.

I have now been including the highest sales prices for the month in single family homes. This is so we can begin to watch the 2nd tier home sales increase in their sales also. The market will always recover from the 'bottom up' with the lower sales prices showing the largest number of sales until the 2nd tier breaks free. This will be an indication that the 'move up' buyers have finally been able to take advantage of today's prices and the low interest rates.

Yes ... we are recovering here in our area for 9 months in a row.  Month over month we have seen an increase in closings and year end sales increased over the dismal 2010. One of the reasons I show the 'month over month' totals is to show you we truly are having sales increases - it's not just sales hype!

The number of 'pendings' has also increased but you can't count on all of these making it to a successful close!  Both housing types have equalized at years end with single family homes doing better at the beginning of the year.

Looking for an agent that's really a market expert?  Let's get your Northwest Suburban home on the market and priced right to sell!

Is your current agent showing you any of this information? Do you feel your current agent is 'flying by the seat' of his pants when answering these questions?

Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.


Sources:  MRED December Stats 2011