Real Estate Information

A Mugwump is a person who sits on top of a fence with their mug on one side and their wump on the other. You need to get off the fence and buy a home. The selection of homes is at an all time high. There are 1,792 homes, condos & town homes for sale in Naperville alone. 140 families purchased Naperville homes in March at very good prices. 95 families closed on homes in Naperville in March. 424 new homes entered the Naperville market in March. Why are you waiting??  This is a great opportunity to find the right home. Interest rates are still at an all time, 50 year low. If you are a first time homebuyer or have not owned a home in three years, the $8,000 tax credit is available. You do not have to repay...it is a straight deduction. E-mail us at napervillerealestate@hotmail.com or call 630-369-0650 for more information.

The Chicago Tribune on March 27, 2009 says this is lowest mortgage rate since 1971. Freddie Mac said that average rates on 30 year fixed-rate mortgages dropped to 4.85 percent last week, down from 4.98 percent.  Refinance applications surged recently also.

Inventory remains high in Naperville and surrounding communities. Home prices are the best we have seen in years and the sellers are looking at most offers. Current inventory, interest rates and the First Time Homebuyer’s $8,000 tax credit provide one of the best buying opportunities for first time homebuyers in recent years.

If you’re interested and want reliable information regarding the market, foreclosures, and current incentives, give us a call at 1-630-803-2347 or e-mail to: www.piketteamrealtors@hotmail.com.

“My home has been on the market for a year. No luck! Buyers say I am over priced! The value of my house is now below my mortgage payoff. I’ve been out of work for 6 months and I'm behind in mortgage payments!! Help!!

You may qualify for a short sale. When your lender agrees to accept a payoff lower than the mortgage payoff it is called a “short sale”. In order for a lender to accept this short sale they consider the following:

1. Are you deserving of this short sale? You first must describe, in writing, your hardship situation. This is in the form of a hardship letter. You will also need to prove no other financial resources which would allow you to pay the mortgage. Tax returns, previous pay stubs, a prepared financial statement, collection letters, default notices & past due bills are important. This proves you cannot pay the mortgage.
2. Next you need to prove that the property is worth less than the mortgage payoff. A realtor of your choice, experienced in short sales can establish this with a CMA.

For a no cost, no obligation market analysis of your home, please email us at piketteamrealtors@hotmail.com.

Do not feel alone. Short sales are becoming more common in this tough economic environment.

Did you know that there are 29 foreclosures and pre-foreclosures listed for sale in Naperville alone?  The “asking price” range is $225,000 to $899, 900. Wheaton has 12 listed from $130,000 to $627,000. Bolingbrook has 30 listed from $99,000 to $430,000. Plainfield has 51 listed from $115,000 to 399,900. Oswego has 11 from $164,000 to $320,000. Downers Grove has 12 listed from $149,900 to $1,095,000.

These homes are screaming for offers!! Almost every community in our Western Suburbs has foreclosed homes. The forecast is an increase in foreclosures for 2009. By 2010 the lenders should have a handle on the situation. If you are thinking about buying a new home or investment property, NOW IS THE TIME. Interest rates are still low. Availability of low to moderate priced homes is excellent. Sign up today on our website at www.foreclosurepropertiessite.com for a no cost, no obligation foreclosed homes search.

Do not be the person who down the road says “Knowing what I know now” I wished I had bought in 2009!

Remodeling Magazine has released their Costs vs Value Report for 2008-2009. The statistics were pulled from all regions of the United States. Here are some of the highlights from the Midwest Region report:

Project                             Average job cost                    % of recovery upon sale

Basement remodels                 $64,008                                         59.1%

Bath remodels                         $16,568                                         64.3%

Deck addition (composite)      $15,440                                         64.2%

Major kitchen. Remodel          $58,253                                         66.5%

Minor kitchen. Remodel          $21,758                                         69.1%

Roof replacement                    $20,227                                         54.7%

Sunroom Addition                   $71,591                                         51.3%

Most remodeling projects are completed long before we decide to sell. Home improvement items, upgrades to new carpet and fresh paint always help speed up the sale of your home. However, if the seller does not have a realistic view of the remodeled items market value, then they can get stuck in a long market time and eventually have to make many price reductions.

 If you are considering a move in 2009 please consider these several issues:

• Prices are down in most markets, which makes it a great time to buy!
• You may sell lower vs. 2007-2009 prices, however, if you are buying you will make up the pricing difference on the buy side. 
• If you wait until the market prices rise, the price on the home you buy will rise also rise along with yours. 
• The time it takes to sell is longer today than in the past. The exceptions are well priced, well staged homes in pristine condition. Many sell above asking price in multiple offers. Email Maureen @ napervillerealestate@hotmail.com for tips on staging as Certified Staging Consultant.
• Begin your preparations early. Clean, de-clutter, give away stuff and paint. Check with us on color prior to painting as color does matter!
• Ask for a comprehensive market analysis (CMA) of your home and the current market. It’s important to understand this environment when selling your home.

The $8,000 tax credit is for first time homebuyers who purchase a home after January 1, 2009 and close before December 1, 2009.

A first time homebuyer is defined as an individual who has not owned a home in the last three years. For married joint filers, both people must meet the first time homebuyer test to qualify for the tax credit.

All single family, town homes, condos, etc. qualify if they are used the buyer’s principal residence.

There are incomes guidelines on the credit…you must have adjusted gross income up to $75,000 (or $150,000 for joint filers). The credit is phased down for those earning more and is not available for those with incomes above $95,000 (or $170,000 filing jointly).

This new tax credit does not have to be repaid if buyer stays in the home for at least three years. However, if home is sold before three years the entire amount of the tax credit is recaptured on the sale of the home.

Email us at piketteamrealtors@hotmail.com for more information. We recommend you discuss this with your tax advisor if other issues are at stake.

I’m talking to a Realtor who has taken a buyer through our $699,900 Bank owned, foreclosure www.piketteamrealtors.com  in Wheaton. She tells me how much the buyer “loves’ the home but feels it’s too high for their budget. I say” WHY NOT MAKE A OFFER?”  She says her client does not want to insult the bank. The bank? Insulted? They are insulted that they had to foreclose on the property. Now they need to sell the home!! No one knows what they will accept until an offer is made. How would those buyers feel if they discovered that someone else bought the property at a lower price….than they were willing to pay?

Many buyers are nervous in this market. We understand. No one wants to pay more than they must. However, very few buyers will buy at the absolute bottom. Because….most of us will find out “when” the market bottoms after it begins to rise. It’s a good bet if we all bought today, prices will rise in the foreseeable future and we’ll all do well.

The National Association of Realtors reported that 45% of all transactions in February were short sales or bank owned foreclosures www.shortsalepropertiessite.com . This is sad for many folks who have lost their homes. However, it creates one of the best buyer’s markets we have ever seen. Our message is find a good buy and WHY NOT MAKE A OFFER???

Yes! The loan limit has been raised to $727,000 in our high cost areas. The tax credit has been raised to $8,000 and it does not need to be repaid. That is very important for the first time home buyers. This should push real estate forward from the bottom up. More buyers at the lower price levels will create buyers for mid and higher priced homes. The bill also has over $50 billion for foreclosure mitigation. We are not sure when we will see the effect of the mitigation and how it will be administered. Interest rates remain good and we expect that to be the case in the near future.

FHA 203(k)s provide a Streamlined, single close loan that enables borrowers to purchase a home that may need repairs or to refinance their existing home for the purpose of remodeling. This program includes the necessary funds for certain repairs and improvements up to $35,000 by financing the “as completed” value of the home, rather than the present value. For more information e-mail us at www.piketteamrealtors@hotmail.com or e-mail Mark Grego at www.mark.grego@1AMLLC.com.  Mark is a mortgage broker with 1^st Advantage Mortgage, A Draper And Kramer company.