The Piket Team's Blog

Should I Wait For Prices To Rise Before I Sell?

Wed, 10 Mar 2010 11:38:00 GMT

YES! Now is the perfect time to put your home on the market. On 12/24/2009 Forbes.com said “experts predict that the selling boom which normally starts in the spring, will hit at a different time than it has in the past. Sellers with flexibility should market their homes earlier in the year."

Mortgage rates are still very good. However later in the year the Wall Street Journal on Nov. 3, 2009 said, “Some bond investors are expecting mortgage rates to rise as the Federal Reserve finishes its planned purchases of nearly $1.5 trillion in mortgage-related bonds.” Rates are predicted to rise 5% to 8%, depending who you are talking with.

The CME group on January 1, 2010 predicted a fall in the home prices at the beginning of 2011 and will not start rising back up to 2010 levels until November 2013. So it looks like 2010 will be the best year to sell in the next three years!

THREE REASONS TO BUY A HOME TODAY!!

Wed, 24 Feb 2010 13:29:00 GMT

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

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.
Interest rates are still low! You can lock now in for the life of the loan.
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.

The Real Scoop on Dryvit Homes!

Mon, 01 Feb 2010 23:01:00 GMT

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.

MUGWUMPS ARE RUNNING OUT OF TIME!

Tue, 26 Jan 2010 02:00:00 GMT

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.

Fixer Uppers Starting to Pick up Steam with Buyers

Tue, 12 Jan 2010 08:36:00 GMT

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.

Question: Should I wait for prices to increase before I sell?

Mon, 28 Dec 2009 02:00:00 GMT

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.

“IF YOU DON’T BUY A HOUSE NOW, YOU’RE STUPID OR BROKE”

Tue, 15 Dec 2009 02:00:00 GMT

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.

SHORT SALES??? THEY SEEM TO BE LONG IN APPROVAL TIME!!!

Tue, 08 Dec 2009 09:31:00 GMT

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.

What Will Happen To Home Values In 2010!!!

Thu, 03 Dec 2009 16:36:00 GMT

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.

TIC TOCK! TIC TOC! TIC TOC!

Tue, 17 Nov 2009 13:45:00 GMT

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.

Homebuyer’s Tax Credit Questions & Answers

Tue, 10 Nov 2009 15:44:00 GMT

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.

$8,000 TAX CREDIT OFFICIALLY EXTENDED AND EXPANDED!!!

Thu, 05 Nov 2009 10:13:00 GMT

According to the AP: "Buying a home is about to get cheaper for a whole bunch of homebuyers - $6,500 cheaper"!

First time homebuyers will continue to receive tax credits up to $8,000. The program intended to expire on Nov.30, 2009 has been extended to April 30, 2010 for sales contract. Homes must be closed by 06/30/2010 to qualify. In addition, buyers who have owned their current home for at least five years would be eligible for tax credits of up to $6,500.

The U.S. extended and expanded the bill yesterday. President Obama is expected to sign this week. For more details continue to watch this blog or email us at piketteamrealtors@hotmail.com

WILL REAL ESTATE LEAD THE ECONOMY OUT OF RECCESION?

Mon, 02 Nov 2009 09:07:00 GMT

The Senate seems to believe it's a start! They have reached a compromise on extending and expanding the $8,000 tax credit for first time home buyers. According to Rismedia, "passage remains uncertain" however probable. The proposed legislation states that it would extend the tax credit for first time buyers who have a signed contract by April 30, 2010. Those buyers will then have until June 30, 2010 to close on that home. There may be a new tax credit of $6,500 for some existing homeowners who have been in their homes for five years over the past eight years. More details to come on that plan.

If the current resale inventory continues to decrease due to an increase in home sales....then new construction business could begin to rebound too. This means more jobs to help our economy grow. More jobs leads to more consumer spending and Real Estate definitely takes a lead in the recovering economy!!

Home Values Dropping...Bargains Galore!!!

Mon, 26 Oct 2009 02:00:00 GMT

Where are the real estate bargains?? Everywhere!!! Homes are the most affordable in years. Interest rates are still excellent. Soooooooo, what are you waiting for? Realtor's inventories are loaded with bargains. Most homes on the market have sellers who need to sell, transferees that need to move, short sales and foreclosures that banks want to get off their books. According to Rick Sharga, Sr. Vice President of RealtyTrac, "we're dealing with foreclosure activity that is six times what it would be in a normal market." We still have a "shadow inventory of perhaps 400,000 to 500,000 homes, which have been taken back by banks, but have not been put on the market for resale." The time for "thinking about it" is over. Roll up your sleeves and dive into this "bargain driven real estate market!" If you are interested in being set up with a home search, please contact us at kevin.piket@johngreenerealtor.com or piketteamrealtors@hotmail.com.

A TRAIL OF TEARS!!

Wed, 21 Oct 2009 09:44:00 GMT

There is no doubt that the $8,000 tax credit stimulated a lot of sales this year. We certainly hope Congress sees fit to keep it going into 2010. However, it has stimulated a lot of hopes and wishes that went nowhere. Many folks definitely have a "trail of tears" and are frustrated trying to buy foreclosed and "short sale" properties using the tax credit. If you are planning to enter the market to purchase a foreclosed home, please know the following:

Get preapproved by a lender, in writing, before you start. Lenders are under pressure and very stingy with approvals.
You may have to compete with multiple offers for the really great buys. Be aggressive with you offer.
Many foreclosed properties need repairs. If serious, FHA loans may not qualify. Also do you have backup abilities or funds to repair?
Prices are still dropping. Appraiser may come in lower than sale price. Back to the negotiating table.
Check property taxes and condo feed, if applicable. May run more than mortgage payment.
"Short Sales" are a different ball game from bank owned foreclosed properties. The seller still holds title. Expect a minimum of 90 days for approval, "if approved".

Foreclosures are definitely worth buying. You just need to be prepared for the sequence of events that lead to a successful purchase. Make sure you work with a Realtor with foreclosure experience. You will avoid that "trail of tears"! If you have more questions, please contact us at piketteamrealtors@hotmail.com.

What’s up with all the Foreclosures??

Thu, 15 Oct 2009 18:22:00 GMT

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.

REDUCTIONS IN HOME PRICES CONTINUE!!!

Thu, 24 Sep 2009 02:00:00 GMT

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!

Don’t miss the $8,000 tax credit!!

Tue, 15 Sep 2009 09:21:00 GMT

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.

THE END IS NEAR!!!!.....................

Tue, 08 Sep 2009 09:48:00 GMT

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 Coming off the Fence?

Fri, 31 Jul 2009 07:12:00 GMT

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.