RealEstateBuyMe.com

High End Foreclosures in the Chicagoland Area for 2011

I would like to welcome back my guest blogger and short sale attorney, Gary Lundeen for another plea to Congress for Short Sale Reform. Soon Fannie & Freddie will begin the 'great sell off' of foreclosures to investors & what impact will it have on the currently limping housing market?

I am sure we all agree that we need a national policy on Short Sale Reform but when will it begin? When will Congress start to listen? This is Gary's perspective on what should be done to an exasperating problem facing all of us in the real estate industry.

Short sales, Foreclosures and a naked guy - an interesting analogy!

The Lundeen Plan - Short Sale Reform - Installment Fourteen

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

There's been much talk (chatter by the national talking heads) in the media about our Northwest Suburban and Schaumburg home values returning to a previous level. I read these reports constantly, day in and day out and wonder to myself 'How do they know this stuff when I don't even know it!'

Real estate is unique in that it is very local in nature. In fact, real estate is so unique it can even be broken down further to say that neighborhoods even in the same town will been effected differently. What happens in one subdivision doesn't necessary happen in another. What effects one subdivisions appeal doesn't effect another that's even similar. So 'painting with a broad brush' is not possible in our Schaumburg neighborhoods.

Any Schaumburg real estate professional I will challenge because they cannot say with absolute certainty that market prices have fallen 20% (you pick the number here). 'Painting with that broad brush' just cannot be done. Many variables have effected your home's values and each subdivision should be considered on it's own merit.

How many short sales have been in the area?

How many foreclosures have decimated prices?

One constant that I will say with certainty is that the more homes for sale in a particular subdivision essentially effects the overall sales prices. The more sellers that compete for the smaller buyer pool effects the sales prices. Each seller is eager to obtain their own goals whether a transfer, death, birth or divorce. It's the economic market standard of supply and demand.

The graph that I present is for the average sales prices per year for Schaumburg homes. I've given you a 10 year sampling of prices (MLS closed only) so you can actually see the rise of the market and also the fall. According to this graph, 'prices have corrected themselves' to 2004 sales levels.

We need less homes on the market to create the equilibrium for prices to increase in the future.






Disclaimer:  NAR (National Association of Realtors) does not provide these numbers to their members. MRED, the area MLS, does not provide this figures which I had to compile for this presentation. I feel confident in their accuracy to report to my readership.

Positive Signs continue in our Schaumburg Real Estate Market for the 8th consecutive month. We are moving ahead with recovery here and sales have successfully reached above the 2010 level of closings.  For the November Schaumburg Single Family Homes are now 10% below 2010 closings and Schaumburg Multi-Family are now up 37% over 2010.  So our local market has totally flip flopped between the single family and attached. Homes have taken an extreme slow down and the attached housing is selling steady (see graph 3 months in a row).

For Schaumburg there are still no price gains calculated with foreclosures still leading the way in current sales.  What is promising is that in a few different surrounding markets the average sales prices are now going up.  If all goes well, our next trend will be for prices to finally level off and slight increases to begin for Schaumburg.  This also would have to take into account how much inventory we have going into winter and we currently are holding near 8 months supply.  We are at a dangerous teetering point here where we can continue to move ahead or have a stall out and slowdown that will continue through our winter.

My summary shows slow growth and first time home buyers or investors have decided to jump in the market to snatch up all those townhouses and condos we've got. It's a good idea for investors as most sales prices will equal a positive cash flow. I've been in multiple offers again for the low end price ranges.



Looking for an agent that knows this fluctuating market?  Give me a call to discuss your housing situation and needs.



Search Schaumburg Homes
Search Schaumburg Townhomes

Welcome to the roller coaster ride for Schaumburg Townhomes!  In this gyrating edition of June's market update I'm going to decipher for you the current market trends (cause that's what I do) and tell you about time on market.  A more complex word that some use might be 'absorption rate'.  So how long will it take your Schaumburg townhome to sell?

Let's first begin with the use of 'townhome'. What I mean in this report is Multi-Family closed sales which include townhomes, condos, duplexes, quads, etc. I don't want to focus on the multiple styles but on the issue at hand.  

Second thought is about the market basic of supply and demand. Obviously in this market we have too much supply. When that happens the time it takes to sell your Schaumburg townhome also goes up. Buyers have a tremendous amount to choose from on the market but don't be fooled they are 'ready to pull the trigger' if they see something they want!

Pricing your home correctly in the beginning has many advantages as these graphs will also illustrate to you. The best sales time is in the first 30 days of your townhomes listing life. Price is the dominate factor in getting your home sold, then condition for that price.

Twenty nine (29) Schaumburg townhomes or 17% of the market sold in the first 30 days. That's terrific for our area! Success percentages become less as the market times become higher (time to check the graph).  At 150 days on the market, your Schaumburg townhome is basically dead in the water.  At 200+ days on the market your for sale sign now says 'rest in peace'.

In fact to drive this point 'home', there are Schaumburg townhomes that finally sold after being 365 or more days on the market. Many townhomes had 20%, 30% or MORE in price reductions before they finally sold.

Days 1 to 30 - No price reductions and sales prices were 2% to 10% off list price. A few sales were at list or OVER list price on foreclosures up to 3%.

Days 31 to 60 - Many townhomes had reductions of at least 5% but a majority reduced from 15% to 25% off their original price.

Days 61 to 90 - All townhomes had reductions in this category also from 2% to 20% off their original price.  After 60 days on the market a price reduction is warranted no matter what the market's like.

From 90 to 120 - Sellers seem to be in a fog about what to do about their price. All reduction percentages are in the high teens and twenty's. This is the smallest segment of the graph which is troubling. This is where sellers start to 'chase the market' downward. Instead of being 'in' the buying mix with a correct price, sellers are continuing to change the price downward while other sellers also change their price. Talk about a slippery slope!

So at this particular time if your Schaumburg townhome is priced correctly from the start there is a 42% chance of your home selling within the first 90 days like these other sellers did.


The Price-Time Graph shows that over-pricing your Schaumburg townhome initially can have a serious impact, not only for time on the market but also on your bottom line. Your sales net is tremendously effected in lost time and lost value.

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

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


Market Update for Schaumburg Homes


Sources:
Debe Maxwell, Charlotte NC Contributor and Top Agent 
MRED June Stats 2011

Recognized as the largest center of economic development in the State of Illinois (outside the City of Chicago), without question, Schaumburg is the 'place for business'.  More than 12 million square feet of office space accommodating a number of corporate headquarters.  Schaumburg also contains 13 million square feet of industrial space, occupying over 1,600 acres of land.  (Village Incentives)  Schaumburg's daytime population exceeds 150,000 everyday.  So what does that mean for you?  Lower taxes from the large tax base (Woodfield Mall also). 

Parks and Recreation - The Schaumburg Park District maintains more than 1,000 acres of landscaped parks including Spring Valley Nature Sanctuary, a prairie wild life preserve and an indoor and outdoor museum.  The Park District also operates four community recreation centers, including the Water Works Oasis, a spectacular indoor pool facility.  Golf courses, racquetball courts, skate park (see video below), summer boat rentals, and three outdoor swimming pools also are under the District's jurisdiction.

Prairie Arts Festival - An annual 2-day juried arts show and sale, featuring the work of more than 150 artists which is help during the Memorial Day Weekend.  Septemberfest is held on Labor Day weekend with fireworks, arts and crafts, carnival rides and parade.

Bike Paths - Schaumburg has an extensive system of 85 miles of bike paths, many extending through parks and connecting public and historic locations. Many of the paths are also connect to bike paths in adjacent towns.

Bike Friendly Community

Schaumburg Regional Airport - The Village purchased the airport in 1994. Individuals and corporations owning small airplanes may fly directly to Schaumburg and its 3,800 foot concrete runway.  The airport does not have scheduled passenger service, but is serviced by air taxi and charter operations.  The airport includes a new terminal building with restaurant (Pilot Pete's), additional tie-down space and new aircraft hangers.  A heliport is also located near the Woodfield Mall.

Metra Train Station - located on Springinsguth south of Irivng Park, offers 1,268 parking spots and runs the Milwaukee West Line into Chicago.

Did we mention the Shopping?  Anything you could pretty much want is at Woodfield Mall and the surrounding areas.  If you can't find something great to buy there's got to be something wrong with you! 

Trolley Car Transportation

This is just a short report on Schaumburg!  It's a great area to live and I have always been an area resident and would love to show you our community with over 25 years experience!

Another good Village Profile

Top Selling Schaumburg Townhome Subdivisions

Top Selling Home Subdivisions

Schaumburg Demographics    60173    60193    60194

Schaumburg Home Search

Schaumburg Townhome Search

Real Estate Market Update - Northwest Suburban May 2011

I am psyched about the good news!  Things are improving for the 2nd month in a row for the Northwest Suburban Market!  A few of the towns are down but for the most part sales are up.  Most of the average sales prices are still low but that is because most of the lower priced homes are being gobbled up first.  It will take some time but once the lower price ranges begin to move at a decent pace the move up buyers will also begin their acquisition of that larger home.  Interest rates are at an all time low making affordability the highest it's ever been.  Get out there and take advantage of these great prices!

Positive Signs .... things are looking up in a great way so I'll share the exciting numbers with you.

OK, so these numbers aren't making you do cartwheels if your home is on the market but it is showing that we are having slight recovery here in our area for the 2nd month in a row.  Single family homes are doing better than the condos and townhouses at this point.  As usual there are some anomalies, the high request areas that normally do well are not and the others are.  Who's to say but is that housing ball beginning to roll finally?  I say it is!

Overall Illinois Statistics -

Nearly 70 percent (68.5%) of Illinois homes sold in the first quarter were priced below $200,000 as first time buyers took advantage of the low prices in the Illinois
housing market.  I have been saying this for months!  The lowest prices are the ones selling first!

Campbell Survey reports 37.5% of buyers in April were first-time buyers, investors 23%.

Affordabilty Index for Buyers: NAR’s housing affordability index shows the typical monthly mortgage payment for the purchase of a median-priced existing home is only 13 percent of gross household income, the lowest since records began in 1970. (NAR, 4/20/11)  With this lower number buying a home should be more enticing to buyers that are currently on the fence with indecision.

The sale of just one home in Illinois produces $28,581 in expenditures made by buyers and sellers in the transaction (with a total annual impact of $7.9 billion in direct and indirect expenditures) across the Illinois economy.  This 'ripple' effect spurs along other related industries through out the local economy.  When a new home is purchased there are expenditures for the buyer to make the home theirs - carpet, paint, wallpaper, hardware, furniture, lawn mowers, etc.  When a seller begins to sell their home there is pre-listing marketing to consider which includes trips to Home Depot, Lowes and Menards.  I think many more things revolve around your 'home' or the housing industry than you might realize!

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!

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

Schaumburg IL Homes - What types of financing was used?

While investigating the total sales for each property type in Schaumburg IL I noticed a few striking differences between Schaumburg single family homes and multi-family home sales.  

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 for 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.  Nine times out of 10 you'll be getting a deal but you'll be in for a boat load of work too.  These homes are usually not for the first time home buyer.

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

Does your Schaumburg Home need a roof? Forget about FHA financing as this is also considered a mandatory requirement. Roof life expectancy of at least 5 years is required.  

With Schaumburg Multi-Family Homes the largest portion of sales was also conventional but the percentage of cash was astounding. (Who says cash is dead?)  I think it 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%).

Another important note to remember is not all Schaumburg complexes/subdivisions are approved for FHA.  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 IL 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