RealEstateBuyMe.com: Illinois: Hoffman Estates

Have you ever been involved in selling a home where an offer was made and you refused to counter the buyers offer? Here is some advice for sellers to consider, especially in today’s economic environment.

If a buyer has taken the time to put an offer on paper and submit it to your listing agent, I think you would agree that this is a good sign that they are interested in purchasing your home.

Your agent calls and says, “great news, we just received an offer!” They come over to review it with you and you immediately get defensive. The offer price is way too low or the terms of the contract aren’t favorable. These terms could include financing contingencies, a long and drawn out closing date or a request for you to pay some of the buyers closing costs.

Do your best to leave your emotions out of this! Consider this a business transaction that, when completed, will get you to your eventual goal. That goal may be buying your dream home, retiring to a different state or country, downsizing and buyer a less expensive home allowing you to stash some cash, and the list goes on.

I have been involved in a few transactions with sellers who have absolutely refused to counter a buyer’s offer. 9 times out of 10 this is the worst thing you can do! Your strategy is that if you do not counter, the buyer will come back with a better offer in a few days. What!? This is like catching and releasing a fish where there are other fishermen around you and hoping the fish decides to come back to you because you think you have better bait on your hook. Why would you take a chance at losing an interested buyer when there is a lot of inventory for them to choose from? Chances are there’s another home out there that could work for them. You may have a special home unlike any others on the market. If priced properly, maybe holding out is the right thing to do, but that is a big risk to take. Make sure holding out for a better offer is worth the risk.

If you have received multiple offers while listed on the market that you feel have been too low, perhaps your agent is not being upfront with you. There is a high probability that your home is overpriced. If your agent has made you aware of this and you have refused to listen and agree to a price reduction, then you are missing the chance to get your home sold for the best price with the least amount of stress. I have seen more sellers that have ended up in foreclosure, short sale, not selling at all or receiving 20% less than an offer they received months or a year earlier because they held out for a better deal. As an agent, it’s hard to see this happen to a client. The agents best bet is to walk away from the listing if there is no agreement to reduce the homes price. The ability to sell your home depends on you and your agent working together to achieve that goal. If you have done your homework and hired a full time, professional and knowledgeable agent, take the time to discuss your concerns with them, they will do the same. Listen to the advice they have given you. This is their daily job. They eat, breathe and sleep real estate!

They have their finger on the pulse of the market and know what needs to be done to get your home sold.

Make the counter offer and keep the negotiations moving. This may be changing the price and terms, just the price or just the terms of the contract. You may have to go back and forth 10 times to get to a final agreement, but there is a good chance you will come to an agreement if you and the buyer are reasonable along the way. Not countering an interested buyer’s offer is not reasonable!

You may not always like what your agent has to say.  It’s not your agents’ job to agree with you all the time or be your best friend.  There are days you will not like them and you’ll wonder why you hired them. Ultimately, their job is to sell your home.  If that means you getting upset because your agent gives it to you straight, that’s ok.  You’ll thank them and get over it once your home has sold and you’ll be glad they weren't sugar coating anything.  In fact, I have a good feeling you’ll become great friends…

I hope this helps to keep you focused on the ultimate goal of selling your home!

Dan Jasmer, GRI | RE/MAX Excellence
510 Bay Isles Road | Longboat Key, FL 34228
T: 941-284-9893 | F: 941-388-0000
http://www.jasmermatarese.com

5 Star Agent: Best in overall client satisfaction 2010

 

I want to start this post by saying that, as with all demographics, not all Generation Y home buyers are going to want the following list in a home.  But, the trends with this age group seems to be leaning in the  direction  for certain amenities and features when buying or renting a home.

I also will just add that as Generation Y begins to marry and have children, a few of these desires may change, but we still have 5-10 years to get to that point.  Generation Y is marrying later in life, so for now, this list will be helpful when selling a home.  If any of these are evident in the property you are selling, make sure to point them out.

So, here we go:

1. Efficiency in space.

2. Utility:  Gen Ys want to know that each room has a useful purpose.  If you are selling a house that has a "parlor", show it as an office or a technology room.

3. Simplicity in design:  Gen Ys have been overloaded with junk and informaton…so keep it simple.

4. Multi-pupose rooms.  Gen Ys don’t really care that much about a formal living room or dining room.  They are much more interested in open spaces, multi-purpose rooms and large kitchens (even though they eat out a great deal).  I recently visited a friend that had creatively designed 700 square feet so that it was open and felt much bigger than actual.  A murphy bed was used and could then double as a bar for entertaining.

5. Housing that is within walking distance of grocery stores, shopping, dining, night life and gyms.  The ability to “stroll” is critical to this generation.  Gen Ys want to be able to park their cars and walk from location to location.

6. Energy efficiency (point out any appliances that are energy efficient or any areas or structures which are LEEDS certified).

7. Easy access to neighbors their own age and to a diversity of people from all walks of life and all ages.  They want to be surrounded with their own peers, but Gen Ys also want a thriving, buzzing network of interesting people.  Gen Ys crave diversity, so the more interesting the people in the neighborhood, the better your chances will be of selling.

8. "Bite-Sized Spaces".  Gen Ys think in bites…not huge, sprawling spaces.  Don’t assume they want a great deal of “space”.  Many Gen Ys say that they can be happy in a smaller home or condo that is efficient, has some space in the back for entertaining and that is accessible to the lifestyle they want to live.

9. Access to hiking, biking and running trails.

10. Yard space for outdoor activities and outdoor entertaining.

11. Neighborhoods which are “dog and cat friendly”.  Gen Ys are big on animals, so make sure to ask if they own a pet.  Many will bring their pet with them to see the home.

12. Technology that is advanced and current.  If you are selling property in an area with free wireless, make sure to drive that point home.

13. Wide but not deep…Gen Y’s don’t care much about depth in a house…they want width and a bigger back yard or outdoor dining space.  Again...just ditch the cut up rooms with formal living and dining rooms in the front of the home that only have one purpose.  Look to sell homes that are close to being one big open room and one additional office space (and of course a nice bedroom).

14. Low maintenance (Gen Y’s travel a great deal, so they don’t want a great deal of upkeep).

15. Modular homes are pretty popular as well as duplex living to keep the cost lower.

16. Any homes which have recycled materials (recycled countertops, cabinets, doors, etc).

17. Homes which may have an area with its own private entrance for guests or for the purpose of subletting. 

 

     The headlines of an Associated Press article found on MSNBC.COM this morning shouted "MORTGAGE RATES AT LOWEST IN FIVE DECADES".  This article reported that the last time we saw rates this good was in the 1950's.

      But also reported within the article?   Low rates are still not causing much of a stir amongst consumers.  They're just not taking action. 

      I am here to make the plea to all current homeowners ... or those thinking of entering the housing market for the first time ...

        PICK-UP THE PHONE OR CONTACT A PROFESSIONAL MORTGAGE LENDER TODAY!

        If you currently own a home and hold a mortgage, make that call!  Have a complete and thorough Mortgage Planning session (which should include a FREE credit report) with your current lender ...  or find a new mortgage lending professional that offers this service.  POINT TO NOTE:  IT SHOULD BE A FREE SERVICE! 

        It is so very important that you take this action at minimum once per year.  My objective when  performing my mortgage planning sessions is not to sell you on any action or new loan.  It is to review the current status of your credit, your mortgage program, your finances as a whole ... and how they all impact one another. It is a discovery session and chance to communicate. 

      The end result of our session should be one of two positive things.  The best result is that we discover you are in the optimum financial position for your personal scenario at that time.  That means the best mortgage program available to you, your credit is in good shape, and no errors found upon it.         

      The second result is one where ACTION is being taken to improve your financial positioning. Discovery has been completed and courses of action are being discussed.  Suggestions to increase credit scores or correct an error discovered on your annual report may have been made.  New options or positioning regarding a lending program are being discussed for possible future action.  Details, such as PMI and escrow accounts, have been reviewed and assessed.  Wheels are in motion to enhance your financial health in some manner.

      Again ... this Mortgage Planning session should be a FREE annual service from your mortgage lender.  The cost to you to should be nothing except your time.  These annual reviews can easily be held in the comfort of your own home ... so it would be un-wise NOT to take advantage of this pro-active action. 

      

      For those thinking of entering the housing market for the first time, it is very important that you talk to a mortgage lender in advance to starting the search process.  Communication with a lender in as much as 6 to 12 months ahead of your planned target starting date is very good.

      When started this early, a professional mortgage lender can begin you on the best and smoothest path to homeownership.  Credit histories can be better established, FICO scores can be addressed and improved, errors found on credit reports can be corrected, debts can be paid down in the manner to best maximize your credit scores.  

       As with the Mortgage Planning ... pre-qualification for homebuying should be FREE or at maximum, the cost of running a credit report.  The more preparation done ahead of the actual property search and transaction processing, the better the conclusion and outcome will be for you.  And with the service being FREE ... why not contact a lender?

      

      It may seem cliche' to relate this message once again ... but these unbelievably low rates cannot last forever.  History has proven that.  SO IF AT ALL POSSIBLE ... now is the time to see if you can take advantage of these rates and benefits. 

      Pick-up that phone.  Text that plea for help.  Write that email.  Start today to find out what possibilities are available for you ... 

                            

www.genemundt.com

gene@chicagobancorp.com

If there is one thing about new construction this Connecticut home inspector knows is that all new homes need inspections.  Unfortunately most new construction home buyers seem blissfully unaware of this little fact. After all the home is brand, shiny new.  Oh and it's been inspected by the town inspector...for free. And there is a one year warranty. Yep nothing to worry about, everything should hunky dory.

Do people lose all connection to reality when purchasing a newly constructed home? Has everyone not at one time or another purchased a brand new item only to find out it's defective? I wonder if buyers fully understand a home is a complex structure consisting of many interrelated systems put together over the course of several months by many hands. When you consider that fact it's amazing how often there are just minor problems.

Sometimes however there are potentially larger issues that crop up when a buyer is wise enough to have the home inspected.

For example on a recent new construction home inspection I discovered two potentially serious problems.

The first was with the manufactured fireplace. The installer did not correctly fit the ceramic surround together leaving large gaps. Behind the surround is the wood framing for the fireplace. Using this fireplace could result in a much bigger fire than expected.

The second issue was with the bedrooms electrical wiring. The arrow is showing the voltage drop at this receptacle, 102.5 volts which is much too low. The minimum is 108 volts. All receptacles in this bedroom and a few in the adjoining bedroom showed a similar drop indicating a problem in the circuit.

What potentially could occur due to this condition is damage to an appliance plugged into the circuit because of the low amount of current. A fire is another possible occurrence.  

Both these issues are fairly easy to repair. They also have not and would not have been discovered by the municipal inspector. Building officials do not test circuits, however the electrician should, and the fireplace is manufactured and as such most of the installation falls on the manufactures instructions, not the building code.

Which brings up another point; not all aspects of home construction fall under the building codes. Who do you suppose is checking on the areas that slip through those cracks?

Having a home inspector thoroughly inspect a newly constructed home can seal up those proverbial cracks giving the buyer a safer home and peace of mind.

 

 

James Quarello
2010 SNEC-ASHI President
NRSB #8SS0022
JRV Home Inspection Services, LLC

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The cost of FHA loans could increase before the end of the year is over with.  Right now, depending on your LTV (loan to value), the FHA monthly mortgage insurance is either .50% or .55% of the base loan amount.  We could see increases any where from .90% to 1.55%. That is a significant increase. Michael LaFido gives more details in this post : FHA mortgage insurance premiums approved to triple in cost

 

 

FHA Monthly Mortgage Insurance Premiums  (with less than 5% down)

Current premium                    -   .55% monthly

Expected increased premium  -  .90% monthly

Maximum increased premium  - 1.55% monthly

 

 

As in the article mentioned above, it can be established that monthly payments on a $200,000 mortgage could increase any where from $59/month to $167/month. Two things happen here.

1. Yes, the borrowers payment increases and even $150 extra a month could impact the borrowers ability to pay

2. But it also would reduce the purchase price by $20,000 or more.

 

 

Below is an excerpt from what Mr. LaFido stated in his post.

 

 

 

 

 

 

 

Here is my problem with this kind of statement, in which HUD has even stated the same thoughts. I call it smoke and mirrors. Here is how I break it down.

First off, he stated that it would reduce closing costs by $2,500.  Even though the Upfront Mortgage Insurance is considered closing costs, it does not have to be paid in cash at settlement. It can be rolled into the loan amount. With that said, the difference alone in payment is only $14 a month if you reduce the loan amount by $2,500.  So even  if they raised the monthly percentage to the next tier, that is a difference of $59/month. So if you reduce the upfront, that is a difference of $45 more a month.  And if you went to the highest tier, that is a large difference of $167 a month, minus the $14, gives you a difference of $153 a month. Just in 16.33 months, you paid off the difference of the $2,500.  So if you stayed in the house for just 3.2 years, you doubled your costs, paying an extra $2,500.  Think about it, FHA says they will give you a break on the upfront. In reality, they are receiving money pretty quickly in a short time, to help the depleted mortgage insurance funds. I really don't have a problem with that, because FHA is a vital part of the housing industry and we need to make every effort to sustain this type of financing.

 

 

Here is an excerpt from what HUD stated in January of 2010 which can be found here : FHA Announces Policy Changes to Address Risk and Strengthen Finances

 

 

 

 

 

 

 

 

 

Notice what they said..... "with less impact to the consumer". Come on, please don't insult my intelligence. $100 to $150 wouldn't have an impact on the average borrower?

 

 

Conclusion : As I mentioned, don't so much have a problem with what needs to be done to help with FHA mortgages, but I do feel that they could reduce the monthly percentages by at least a 1/4 of a percent. As I showed above, just in 3.2 years on a $2000,000 loan, FHA would recapture an additional $2,500 in that time period. And just for the fact that FHA has realized that it's funds have been depleted for a few years, why couldn't they have looked at this seriously a few years ago or even a year ago, and made a slight change instead of what I feel is a drastic change.  Yes, FHA loans are vital to home buying, but at what cost? What are your thoughts?  We need to let the government hear our voices on this subject.

 

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc