Real Estate Information

Foreclosure sales are breaking records. They seem to be everywhere and every price range. However, the experts say that we are just at the tip of the iceberg! Rick Sharga with Realty Trac says "it's likely that between 450,000 and 500,000 properties repossessed over the past year are still not on the market." It's no secret that the lender/lien holders were not prepared to handle this large of a work load. A lot of legal work needs to be done and the large volume of foreclosure activity is mindboggling at best. When this new wave hits the Multiple Listing Services (MLS), home prices will be affected. How much? That remains to be seen. We currently have a number of buyers on "foreclosure home searches" in our system. We are preparing for a lot more too!  If you want to be set up on one of these foreclosure home searches too, please email us at piketteamrealtors@hotmail.com. 

Trulia, Inc. a leading real state internet site reports home price reductions for four straight months. Sellers are adjusting to declining prices in the marketplace. The higher the price range, the more the reduction. There is no question that this is the toughest market on sellers we've seen in the past 16 years. Sellers, who must sell for what ever reason are finding that buyers are looking for the "best value and best price".  Most buyers are accept nothing less. The one consolation for many sellers is that "they" become buyers after they sell and are able to take advantage of the market pricing at the new location.

How long will this decline in home value last? No one knows for sure. Some economist say it will be 2 to 3 years before prices begin an upward movement. Some say it might be longer though.  The morale of the story is...NOW is a great time to buy! 

First time homebuyers and/or buyers who have not owned for 3 years are eligible for a tax credit if home is purchased and closed prior to 12/01/09. The lenders are slow moving through the paperwork. Many appraisers are slow getting reports to the lenders. To be sure you qualify for the credit you need to be "bought and closed" by the middle of November. Allow a couple of weeks for a home search. A week to 10 days for negotiations, home inspection and attorney review. Most sellers need 30 to 45 days to find a moving company and move. Most closings are that far out from contract date. This is one case where "if you snooze, you definitely lose!"

For more information regarding The tax credit or the home buying process e-mail us at piketteamrealtors@hotmail.com or kevinpiket@johngreenerealtor.com.

Yes, the end is near for the first time homebuyer’s tax credit. There is no indication from Congress that this will be extended. This means that if you are qualified for this credit and intend to buy a home………..better get moving now!! You must close on or before November 30^th at midnight. If you are a FHA/VA buyer, we recommend a home purchase date in September or by October 10^th latest. The FHA/VA paperwork trail and time can be endless.

The National Association of Realtors estimates that $1.8 to $2 million qualified buyers will take advantage of this tax credit. The housing market momentum is moving in the right direction. Other buyers are taking advantage of low home values. Prices will go up, “when?” is a good question. Currently, median home prices and home price values are the lowest since 1970!!!

Remember, if you are looking for foreclosures, they are not excluded from the tax credit if they are to be your primary residence. Sign up for our free home search today at www.pikettemrealtors.com.  

Mugwumps, folks with their mug on one side of the fence and their wump on the other are coming off the fence. Many potential homebuyers have decided "now" is a good time to buy! Existing home sale are up for the third month in a row ending in June. According to the National Association of Realtors June housing sales (incl. single family, townhomes and condos) were up 3.6% over May. Sales were only -0.2% vs. June 08. In Naperville, homes under $400,000 have seen a sales increase over June 2008 and 2007. 68 contracts were written in June 09 vs. 58 in 2008 and 49 in 2007. This price range would be influenced by the $8,000 tax credit and falling home prices. Inventory in this price range seems to be stabilizing. 460 homes were for sale in June 09 vs. 463 in 2008 and 418 in 2007. Looks like we may have found the bottom. If you are interested in a free home search, please visit our website at: www.piketteamrealtors.com.

This is the best buyers market in years. Prices of homes are down. Interest rates are still good and very competitive. Seller's are negotiating too! A good barometer of pricing are the "median prices" of sold & closed homes in a specific area. Let's take a broad look at two Chicago western suburbs counties; DuPage and Will. The median price for closed sold homes in DuPage county June of 2007 was $368,500. June of 2009 the median price was $299,250, a -18.8% drop. The median price for closed sold homes in Will county June 2007 was $250,000. June 2009 the median price was $212,500, a 15.0% drop.

NOW IS THE TIME TO BUY A HOME. According to the National Association of Realtors, 50% of today's buyers are a first time home buyer who is using the $8,000 First Time Buyers Tax credit.  A great number of those buyers and the experienced buyers are buying foreclosed properties. If you are interested in the "median price" analysis of your town or zip code please email us at piketteamrealtors@hotmail.com.

I read an interesting article in today's Chicago Tribune by Ellen James Martin. She spoke about a home seller with a specific problem; "The next door neighbor's yard is an overgrown mess, and they feared they'd take a hit on their home's sale price". In this, a buyer's market, Ellen is absolutely correct. They could very well take a hit on price or worse, not sell at all. Over the past 16 years we have faced this problem over and over again. In the article, Ellen recommends the best approach is a courteous, positive approach with the neighbor. I must say that has worked in every single case we have encountered. Most people want to be good neighbors. Most people will listen to reason. Take them cookies and lemonade if necessary. Offer to help them cut and clean, whatever it takes. The goal is to place your home, street, etc. at the top of the buyer's list. For a free booklet on home selling tips, e-mail your mailing address to piketteamrealtors@hotmail.com. It's a competitive market for sellers, let's get yours at the top of the list!

May 2009 was a great month for john greene, Realtor. We were up 36% in home sales transactions vs. April 2009. Sales dollars were 66% higher vs. April 2009. Sales were up 21% over May 2008. This is the best performance of the year and a good sign that the natives are restless and are on the move. Most folks who outgrow a home can only take it for so long. Even if you take less for your home than desired, you'll make it up on the buy side.

One interesting note; 53% of all real estate sales, nationally, year to date are first time homebuyers using the $8,000 tax credit. My question to you is; two years from now when folks are saying "I wished I bought real estate in 2009!" are you going to be the person with the smile or frown on your face?

I recently read somewhere that "we should never waste a good crisis!"

We are in a market with heavy inventory at almost all price ranges. It is possible for one home to be active with buyer viewings and the guy across the street getting nothing. The market is changing and the buyer's habits are also changing. If you plan to sell your home this year consider the following:

1. In today's market your first showing is on the internet. 90% of all buyers are searching the web prior to stepping a foot into a home. Pictures and plenty of them, are critical. Many top quality pictures are necessary for your home to make the showing list.
2. Your home must be easy to show. Confined hours, one day notices & exact time appointments are out. Realtors have too many other homes to offer their buyers.
3. Does your home have emotional appeal? Is it spotless? Fresh paint? Smell good? Decluttered? Soft music? Call a stager.
4. Do you leave the property with the kids & pets when buyers are viewing? Buyers and Realtors like to walk and talk each home without your presence.

If you are currently on the market, consider what we say. Make your home buyer friendly. If you are planning to sell in the next 12 months, call us. Our advice is free!

A Story from Neil Piket...

Just take yourself down the road a few years. Sitting at Starbucks shooting the breeze with your friends and one says "Boy, I wished I bought real estate in 2009! Will you be smiling or lamenting with your friend. This reminds me of my youth when my Dad told me the following story: During the depression in the late 1930's he worked as a bellhop in one of the luxury hotels on Miami Beach. He made about $100 per week when every one else lucky to have a job making $5 per week. He became friends with an investor who frequented the hotel on "land buying trips" This investor said to my Dad one day, "Joe gives me one week's salary ($100) and I will invest you in one of my projects." My dad said no. It was too risky. He was single and spent the money on good times instead.  This came up in 1965 when I was reporting to a Sears store as a college trainee. The store was in North Miami, a recent major mall development by Homart Development. The land sold for millions of dollars. This was the property which my Dad could have invested in. I believe the land was selling for $1 per acre in the depression. This is one reason I'm still working today...no inheritance!!

In the past 30 days, 116 home went under contract in Naperville. The list price range was $176,000 to $1,800,000. Only 20 were "as is" properties which includes foreclosures & short sales. February pending home sales jumped 14.5% over January in the Midwest. Jumped 3.4% over February 2008. Those folks will be smiling at Starbucks in a few years. E-mail us www.piketteamrealtors.com for more info.