Real Estate Information

Here are three simple reasons why you should buy a home today!!  

1. The $8,000 First Time Homebuyer tax credit extended to April 30^th, 2010 & close by June 30, 2010. Also a $6,500 credit for homebuyers who have lived in their present home for 5 consecutive years within the last 8 years.
2. Interest rates are still low! You can lock now in for the life of the loan.
3. Home prices are at the lowest in years. Values are everywhere and in all price ranges. 

Please email us today for a free online home search in the area and price range of interest. piketteamrealtors@hotmail.com or kevinpiket@johngreenerealtor.com.

S. Nesmith of Chicago asked: “I found a home in Naperville that we liked very much. It has a Dryvit exterior. Some of my friends said to be careful of Dryvit due to the moisture problems that can occur. What is dryvit and is there a problem?”

Dryvit is a common name for EFIS-Exterior Insulation and Finish Systems. It is sometimes referred to as Synthetic Stucco. It is a well insulated exterior with an elegant stucco look. Many homes use brick or stone trim with the EFIS. There are several manufactures of this type of exterior; Dryvit, Sto, and Senergy are the major players in the industry.

When first introduced to the Chicago suburbs, many builders were not careful in the selection of application subcontractors. Thus, due to faulty installation, moisture problems and subsequent class action lawsuits plagued the industry. Corrections in application procedures and quality of subcontractors have resulted in much better results.

Synthetic Stucco is more energy efficient than other types other exteriors. The EFIS systems add more “R” value to the home, less expensive gas and electric bills. The Oak Ridge National Laboratory funded through The U.S. Dept. of Energy completed a study in 2007 highlighting the benefits of Synthetic Stucco. For more information on Oak Ridge Labs see www.ornl.gov.

With proper maintenance your Dryvit home will put you ahead of the “going green” movement in the country. For more information on Dryvit please e-mail us at pikettrealtors@hotmail.com, or call 630-803-2437.

First time buyer’s that are sitting on the fence with their mug on one side and their wump on the other who are “thinking about buying” in this market are running out of time! At least running out of time to take advantage of the $8,000 first time home buyer’s tax credit! You still have until April 30, 2010 to put a contract on a home and to June 30, 2010 to close on that home.

The first time home buyer is defined as someone who has never owned a home or has not had any ownership in a home for three years prior to the new purchase.  Income limitations are $125,000 for single people and $225,000 for married people.  The limitation on the sale price of the purchased home is $800,000. 

This tax credit is a true credit. There is no payback required as long as the buyer stays in the home, as a principal residence, for three years from purchase date.  Please contact us for further details on the tax credit or to set you up on a home search at kevinpiket@johngreenerealtor.com. 

Most buyers are looking for “move in “condition homes. However many buyers are now beginning to recognize that foreclosed or bank owned homes even in rough shape, present more value in the long run for them.

Consider FHA’s 203K loans for homes in need of improvement and repairs. The FHA section 203k program is specifically designed to rehab and provide repair dollars for single family homes. This includes improvements to the kitchen, bath rooms and basement for updates and upgrades.

The most popular version is the 203k “streamline” loan. This is limited to $35,000 for the rehab portion of the purchase. The streamline version is for cosmetic improvements only. Structural improvements fall into the regular 203K program.

If you desire more information regarding this program, e-mail us at piketteamrealtors@hotmail.com or call 630-803-2437.

The home prices have increased double digits in five year increments since 1980. 1980-85, 25%, 1985-90, 27%, 1990-95, 25%, 1995-2000, 29% AND 2000-2006…89%. We are NOW in a market of adjustment. The downturn in economy, increasing number of short sales and foreclosures and reduced number of qualified buyers are driving prices down. According to First American Corelogic in 10/09, “21% of Illinois mortgages are underwater”. Stan Humphries, Zillow’s chief economist says “The negative-equity will rise and spin off more foreclosures. I see a substantial downsize risk to prices and I don’t think we’ll see a bottom until the middle of next year”.

Now, to the question of waiting to sell your home; the current tax credit through April, 30, 2010 should stimulate buyers in the first quarter.  Business Week in 9/09 says “With any luck, three years should be long enough for the U.S. economy to recover and for the nation’s housing inventory to shrink to more normal levels.”

USA Today has looked at the housing situation by state.  Illinois' excess housing is predicted to be reduced by 2012 or later. If you want to sell or need to sell January through June 2010 seems to be a good time.  After that, we’ll have to wait and see how fast housing inventories will grow.  For more details, please contact us at piketteamrealtors@hotmail.com.

Writes Marc Roth with Businessweek.com. He goes on to say "you may not be stupid or broke. Maybe you already have a house and you don’t want to move. Or, maybe you are a Trappist Monk and have forsworn all earthly possessions. But…if you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why...historically low interest rates!!”

Marc goes on to say “As of today, the average 30 year fixed rate loan with no points or fees is around 5%.”

You should also consider the large selection of homes and declining prices. It's like a candy store for buyers...for the time being. We expect that home pricing is beginning to stabilize. Once new construction kicks back in…we should see a slow rise in pricing.

Don’t forget the tax credits are good through April, 30^th with a close of June 30^th, 2010.  If you want more information or want to be set up on a home search, please email us at piketteamrealtors@hotmail.com or kevinpiket@johngreenerealtor.com.

The National Association of Realtors says that 500,000 short sales occurred in 2009. That is about one in ten homes sold this year. A short sale is the process where a troubled homeowner can sell their home below the mortgage balance with approval from the lender. The advantage to the lender is avoidance of the foreclosure process which is usually more costly vs. short sale. In most cases short sales take 90 plus days for lender approval. This is mostly due to clerical backlog due to the large number of short sale requests. Many short sales are cancelled due to buyer impatience. The process is also slowed when lenders nit pick Realtor's commissions. Many also try to hold the seller accountable for the debt in the future.

IS THERE A LIGHT AT THE END OF THE TUNNEL? YES AND IT IS NOT A TRAIN!!!

U.S. Treasury released new rules regarding short sales. New guidelines include $1,000 to $1,500 payments to homeowners to help cover moving costs and TIMELINES, and now has a more standardized process. Effective date for this new guideline is April 5, 2010.  In the interim buyers & sellers will just have to be patient.  To learn more about short sales, please contact us at piketteamrealtors@hotmail.com. 

Good question! As economic difficulties continue and the unemployment rate escalates, more homes will move into foreclosure. The 2008-2009 rounds of foreclosures were mostly due to questionable loans to many folks who went over their heads as interest rates adjusted and taxes increased. The next round will be prime mortgages going delinquent.

Neighborhoods will continue to be impacted by foreclosure pricing throughout 2010. BUYERS WILL CONTINUE TO HAVE THE UPPER HAND. Sellers with good equity or a need to move will continue to list and sell homes. The lenders will, most likely, begin to become more aggressive to fund buyers with good credit. However, all of this will lead to a major adjustment of home values in our market. The recommendation is to BUY!! The recommendation to sellers is to come on the market early, price your home to sell and get your home professionally staged for a successful and quick sale. 

If you want to learn what the value of your home is, please email us at piketteamrealtors@hotmail.com.  If you are looking to be set up on one of our free home searches, please email us at kevinpiket@johngreenerealtor.com.

The clock is ticking towards the new and extended deadline date for the first time homebuyer's $8,000 tax credit and the addition $6,500 tax credit for people occupying their previous home for 5 years. Circle April 30, 2010 on the calendar. All contracts need to be finalized by that date and they must close on/or before June 30, 2010.

Question: I owned my home for seven years, but sold it two years ago and I have been renting ever since. If I buy a home today will I qualify for the $6500 tax credit?

Answer: If you meet all the eligibility tests on income of $125,000(single) or $225,000(married), the purchase price is under $800,000 and you close before July 1, 2010........then yes you qualify. Also as long as you lived in the home 5 years straight, the 2 years rental period did not disqualify you.

Regarding the $6500 tax home buyer credit, does the new home purchased have to cost more than the current home you live in? Answer: No

I am eligible first time homebuyer and I entered into a contract to purchase on Nov. 1, 2009. Do I have to close before 12/01/2009? How does the extension affect me?  Answer: You do not have to close before Dec. 1, 2009 since the legislation has been signed. Therefore, as long as the contract is closed before April, 30, 2010 the purchaser will be eligible for the tax credit.

To keep up with the Homebuyer's Tax Credit follow our blog @ www.piketteamrealtors.com or email us at piketteamrealtors@hotmail.com.