In the past, I have been very leary of short sales and foreclosure listings that are for sale in the multiple listing service that I use in my day to day business. Unfortunately for our economy, and unfortunately for the banks and investors that provided financing for so many properties that are now for sale, it is a fact that many of these properties that I believed would never make it to a closing table, are now showing up as closed sales.
In the areas of Skokie, West Rogers Park, Lincolnwood, Evanston, and Edgewater, I am noticing that almost 1 out of every 3 properties that has gotten to the Pending, or attorney approval/Inspection stage of a sale have the terms short sale or bank owned somewhere in the remarks.
I am also noticing that many of these properties that close are closing at 50%-60% of the amount owed on a mortgage from the previous homeowner. Wondering where the 700 Billion dollars in the bailout is going? Spend a few minutes with me searching the MLS statistics, and you will feel real queezy about the way things are going.
What does that say to buyers who are looking to buy property right now? It says opportunity is knocking. You know the old saying, buy when there is blood in the streets, and sell when the trumpets are sounding. If you can buy now, buy now!!!!
You can easily search foreclosure and short sale property that is listed in the MLS at http://coldwellbankerleader.com , this is a free search.
If you want to be steered in the right direction of how to buy a foreclosure or short sale property, call me at 312-513-4490 or email me back at earl.ruthman@coldwellbanker.com
Showing posts with label skokie real estate. Show all posts
Showing posts with label skokie real estate. Show all posts
Monday, November 10, 2008
Tuesday, June 3, 2008
Home purchase's can fall apart at the last second, you need a realtor who is on their toes to see that everything comes to a finish.
Most buyers and sellers feel relieved when the negotiations are done and the purchase agreement has been signed by all parties. It's a milestone. But, you might want to hold off celebrating until the transaction closes.
Current market conditions have complicated the home sale industry. Lender requirements for mortgage qualification and the types of home loans available are changing daily. Before getting into contract to buy a home, make sure you double check with your lender or mortgage broker to confirm that the loan you were qualified for several weeks ago is still available.
For example, a week before closing, buyers who were purchasing their first home -- and who had been assured that their financing was in order -- were informed that their lender was no longer providing the type of loan they needed to complete the transaction.
These were well-qualified buyers who had enough cash for a 10 percent down payment and closing costs. They needed to borrow a first mortgage for 80 percent of the purchase price and a second mortgage for the remaining 10 percent. The lender who was providing the 10 percent second mortgage decided they would no longer provide 10 percent second loans to first-time buyers.
In a similar situation, buyers who had been approved for 80-10-10 financing were told by their lender at the last minute that their underwriting guidelines had changed. The lender would no longer provide a second mortgage for 10 percent of the purchase unless they were also providing the first mortgage.
A year ago, financing was readily available to just about anyone who wanted to buy a house. And, most of what sold appraised for the purchase price. It was rare to see a listing back on the market because the buyer couldn't get financing. If a deal fell apart, the most likely culprit was an irreconcilable difference over an inspection issue.
HOUSE HUNTING TIP: Due to the change in the credit markets, buyers are wise to include financing and appraisal contingencies in the purchase contract in addition to an inspection contingency. A contingency should give the buyers a period of time to satisfy the condition in question. If they act in good faith and attempt to satisfy the condition, but are unable to, they may have the right to withdraw from the contract without penalty, depending on how the contact is written.
When buyers find themselves in competition, it's tempting to waive contingencies. A year ago, many buyers felt comfortable waiving contingencies for financing and property appraisal. There was a loan product for everyone and appraisals weren't an issue.
This is no longer the case. Most lenders have stopped doing easy-qualifier, no-cash loans and pay-option mortgages, to name a few. Lenders have also tightened up on appraisals, credit score and verifiable income requirements.
Buyer's remorse is a more serious issue in a slow market where home prices are soft than it is in a market where prices are escalating. Sellers can help prevent buyer's remorse from sinking a deal by properly preparing their homes for sale. This includes pricing accurately for the current market so that the buyers don't feel they overpaid when they see the inspection reports.
Obtaining pre-sale home inspections will also help keep buyers from having second thoughts. The more buyers know about the condition of the property before they make an offer, the less chance they will back out due to inspections.
THE CLOSING: A soft market makes an offer that is made contingent on selling another property more risky. Even if your buyer has lined up a buyer for his house, if that deal falls apart so does yours.
Our agents at Coldwell Banker Leader Realty have the experience, know how, and support behind them to propel your transaction to a finish. Call us at 773-465-4200 or visit us on the internet at http://coldwellbankerleader.com to put our 30 plus years of experience in your corner.
Current market conditions have complicated the home sale industry. Lender requirements for mortgage qualification and the types of home loans available are changing daily. Before getting into contract to buy a home, make sure you double check with your lender or mortgage broker to confirm that the loan you were qualified for several weeks ago is still available.
For example, a week before closing, buyers who were purchasing their first home -- and who had been assured that their financing was in order -- were informed that their lender was no longer providing the type of loan they needed to complete the transaction.
These were well-qualified buyers who had enough cash for a 10 percent down payment and closing costs. They needed to borrow a first mortgage for 80 percent of the purchase price and a second mortgage for the remaining 10 percent. The lender who was providing the 10 percent second mortgage decided they would no longer provide 10 percent second loans to first-time buyers.
In a similar situation, buyers who had been approved for 80-10-10 financing were told by their lender at the last minute that their underwriting guidelines had changed. The lender would no longer provide a second mortgage for 10 percent of the purchase unless they were also providing the first mortgage.
A year ago, financing was readily available to just about anyone who wanted to buy a house. And, most of what sold appraised for the purchase price. It was rare to see a listing back on the market because the buyer couldn't get financing. If a deal fell apart, the most likely culprit was an irreconcilable difference over an inspection issue.
HOUSE HUNTING TIP: Due to the change in the credit markets, buyers are wise to include financing and appraisal contingencies in the purchase contract in addition to an inspection contingency. A contingency should give the buyers a period of time to satisfy the condition in question. If they act in good faith and attempt to satisfy the condition, but are unable to, they may have the right to withdraw from the contract without penalty, depending on how the contact is written.
When buyers find themselves in competition, it's tempting to waive contingencies. A year ago, many buyers felt comfortable waiving contingencies for financing and property appraisal. There was a loan product for everyone and appraisals weren't an issue.
This is no longer the case. Most lenders have stopped doing easy-qualifier, no-cash loans and pay-option mortgages, to name a few. Lenders have also tightened up on appraisals, credit score and verifiable income requirements.
Buyer's remorse is a more serious issue in a slow market where home prices are soft than it is in a market where prices are escalating. Sellers can help prevent buyer's remorse from sinking a deal by properly preparing their homes for sale. This includes pricing accurately for the current market so that the buyers don't feel they overpaid when they see the inspection reports.
Obtaining pre-sale home inspections will also help keep buyers from having second thoughts. The more buyers know about the condition of the property before they make an offer, the less chance they will back out due to inspections.
THE CLOSING: A soft market makes an offer that is made contingent on selling another property more risky. Even if your buyer has lined up a buyer for his house, if that deal falls apart so does yours.
Our agents at Coldwell Banker Leader Realty have the experience, know how, and support behind them to propel your transaction to a finish. Call us at 773-465-4200 or visit us on the internet at http://coldwellbankerleader.com to put our 30 plus years of experience in your corner.
Monday, May 12, 2008
Skokie, a first time buyer's dream
College Grads and First Time Home Buyers: Skokie Homes are For You!
Did you just Graduate? Or are you maybe a young, first time home buyer?
Well if you are, it’s not that difficult to find a good place to call home and still be frugal in the village of Skokie.
Many times when you’re looking for a new home, it’s hard to
1). Find a good location
2). Get a good price, and…
3). Locate a home you actually want to purchase!
Buying a new home can be very difficult, but only if you make it too hard on yourself. Condos are a great option for new home buyers and those who’ve recently entered the workforce, like College graduates. If you are looking for a serene location, that offers great schools, entertainment and easy access to Chicago’s nightlife, then Skokie, Illinois is a perfect place to call home.
When shopping for homes Skokie has been truly overlooked, as it has many options from condos to multiple family homes. The village has been a hotbed of new construcion as of late. If it is a condominium you are looking for, the village of Skokie is fertile ground for frugal home buyers. Buy now and you will buy in to an assett that only increases in value over time.
Skokie currently has more than 185 listings for condominiums with prices ranging from $150,000 to $300,000. Typical condominiums don’t always offer spacious interiors and suburban upscale living, especially not in a community like Skokie, but with the new conversion condos and new construction condominium offerings, the units are a steal.
For instance, a new construction building located right on Skokie Boulevard is listed at $297,000 with a candid view of the Skokie forest perserves wooded area, features an in-unit washer and dryer, all new appliances, and some high-end amenities that you have to see to believe. If you were to look for a luxury home in Chicago, with a spectacular view and like amenities you’d pay well over $400k.
These kinds of homes are perfect for small families, entreprenuers, and new home buyers looking for affordable housing.
To easily search buying opportunities in skokie, call us at 773-465-4200 or visit us at http://coldwellbankerleader.com
Did you just Graduate? Or are you maybe a young, first time home buyer?
Well if you are, it’s not that difficult to find a good place to call home and still be frugal in the village of Skokie.
Many times when you’re looking for a new home, it’s hard to
1). Find a good location
2). Get a good price, and…
3). Locate a home you actually want to purchase!
Buying a new home can be very difficult, but only if you make it too hard on yourself. Condos are a great option for new home buyers and those who’ve recently entered the workforce, like College graduates. If you are looking for a serene location, that offers great schools, entertainment and easy access to Chicago’s nightlife, then Skokie, Illinois is a perfect place to call home.
When shopping for homes Skokie has been truly overlooked, as it has many options from condos to multiple family homes. The village has been a hotbed of new construcion as of late. If it is a condominium you are looking for, the village of Skokie is fertile ground for frugal home buyers. Buy now and you will buy in to an assett that only increases in value over time.
Skokie currently has more than 185 listings for condominiums with prices ranging from $150,000 to $300,000. Typical condominiums don’t always offer spacious interiors and suburban upscale living, especially not in a community like Skokie, but with the new conversion condos and new construction condominium offerings, the units are a steal.
For instance, a new construction building located right on Skokie Boulevard is listed at $297,000 with a candid view of the Skokie forest perserves wooded area, features an in-unit washer and dryer, all new appliances, and some high-end amenities that you have to see to believe. If you were to look for a luxury home in Chicago, with a spectacular view and like amenities you’d pay well over $400k.
These kinds of homes are perfect for small families, entreprenuers, and new home buyers looking for affordable housing.
To easily search buying opportunities in skokie, call us at 773-465-4200 or visit us at http://coldwellbankerleader.com
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