from the Woodridge Patch - June 18, 2013
Woodridge experienced significant growth in home sales during May, while prices showed steady increases, according to the Mainstreet Organization of Realtors.
The 30 single, detached homes sold in Woodridge during May 2013 represented a 87.5 percent increase over May 2012, when 16 homes were sold, according to the Mainstreet Organization of Realtors (MORe).
There were 32 homes sold in Woodridge during April.
While the number of homes sold increasing significantly in Woodridge, the median home price also showed steady gains in May. The median price increased 13.4 percent to $241,000 from $212,500 in May 2012.
Sales of single-family, detached homes in suburban Chicago increased 29.1 percent in May 2013 compared with the same period a year ago, MORe reported. Sales in the 200 communities MORe gathers information on in DuPage, Lake and suburban Cook counties – experienced notable sales gains last month.
Sales momentum is expected to continue in those communities, as the number of detached homes under contract in May grew by 45 percent in those same communities, according to MORe.
In DuPage County, Burr Ridge experienced a significant increase in sales over the same period last year. In May, 17 homes sold compared with 6 in 2012.
The only Patch community in DuPage County to experience a slight decrease in sales during May was Hinsdale, which had -33.3 percent sales declining from 33 homes sold in May 2012 to 22 homes sold in May 2013, according to the statistics.
Competition in the housing market is going to continue as the market works through a backlog of distressed properties, said Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park.
“Buyers need to come in aggressively with their first price, especially on moderately priced homes in good condition,” Corder said “We are seeing multiple offers and people writing contracts on properties the day they come onto the market. ... There is a buzz going on in real estate right now. People want to take advantage of this market.”
Tuesday, June 18, 2013
Thursday, May 9, 2013
Homebuyers clueless about mortgages
By Les Christie @CNNMoney May 9, 2013: 12:24 AM ET
The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives. When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.
Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.
Related: Tips for buying a home
"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."
One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.
Related: 5 best markets to buy a home
But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.
Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.
Related: How much house can you afford?
And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins."If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.
For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.
Related: Was my home a good investment?
Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.
Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.
Related: Boomerang buyers return to market after foreclosure
Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again. In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.
The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.
The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives. When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.
Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.
Related: Tips for buying a home
"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."
One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.
Related: 5 best markets to buy a home
But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.
Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.
Related: How much house can you afford?
And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins."If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.
For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.
Related: Was my home a good investment?
Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.
Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.
Related: Boomerang buyers return to market after foreclosure
Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again. In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.
The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.
Wednesday, April 24, 2013
March Home Sales: Woodridge Market Shows Decline; Median Price Makes Gains
Republished from an article in the Woodridge Patch by Mary Ann Lopez on April 23, 2013
Woodridge saw a moderate decrease in the number of homes sold during the month of March. The median home price rose more than 25 percent, according to the Mainstreet Organization of Realtors.
The 9 homes sold in Woodridge during March 2013 represented a -18.2 percent decrease over March 2012, when 11 homes were sold, according to the Mainstreet Organization of Realtors (MORe). While the number of homes sold decreased, the median price of homes sold in March increased moderately in Woodridge. The median price increased 27.7 percent to $212,000 from $166,000 in March 2012.
The market for detached, single-family homes in suburbs throughout DuPage County experienced notable sales gains in March, MORe reported. MORe gets its statistics from Midwest Real Estate Data.
Hinsdale had the biggest percentage drop in the number of homes sold, with -37.9 percent fewer homes sold year over year. That adds up to 18 homes sold during March 2013 compared with 29 sold in March 2012.
Elmhurst had the biggest percentage increase, with 64.3 percent more homes sold year over year. That adds up to 46 homes sold during March 2013 compared with 28 sold in March 2012.
Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park, cautioned sellers that the market still needs to shed more distressed properties before home prices make a complete recovery.
“The spring market hasn’t been this busy since 2007,” Corder said. “For homes that are priced right, multiple offers are coming in.”
Woodridge saw a moderate decrease in the number of homes sold during the month of March. The median home price rose more than 25 percent, according to the Mainstreet Organization of Realtors.
The 9 homes sold in Woodridge during March 2013 represented a -18.2 percent decrease over March 2012, when 11 homes were sold, according to the Mainstreet Organization of Realtors (MORe). While the number of homes sold decreased, the median price of homes sold in March increased moderately in Woodridge. The median price increased 27.7 percent to $212,000 from $166,000 in March 2012.
The market for detached, single-family homes in suburbs throughout DuPage County experienced notable sales gains in March, MORe reported. MORe gets its statistics from Midwest Real Estate Data.
Hinsdale had the biggest percentage drop in the number of homes sold, with -37.9 percent fewer homes sold year over year. That adds up to 18 homes sold during March 2013 compared with 29 sold in March 2012.
Elmhurst had the biggest percentage increase, with 64.3 percent more homes sold year over year. That adds up to 46 homes sold during March 2013 compared with 28 sold in March 2012.
Tonya Corder, president of MORe and managing broker of Keller Williams Preferred Realty in Orland Park, cautioned sellers that the market still needs to shed more distressed properties before home prices make a complete recovery.
“The spring market hasn’t been this busy since 2007,” Corder said. “For homes that are priced right, multiple offers are coming in.”
#
of homes sold
|
Median
sale price
|
|||||
Town
|
2013
|
2012
|
%
change
|
2013
|
2012
|
%
change
|
Burr
Ridge
|
15
|
19
|
-21.1%
|
655,000
|
658,000
|
-0.5%
|
Darien
|
7
|
10
|
-30%
|
246,000
|
239,500
|
2.7%
|
Downers
Grove
|
39
|
25
|
56%
|
274,000
|
267,000
|
2.6%
|
Elmhurst
|
46
|
28
|
64.3%
|
375,500
|
351,500
|
6.8%
|
Glen
Ellyn
|
32
|
32
|
0%
|
338,500
|
255,625
|
32.4%
|
Hinsdale
|
18
|
29
|
-37.9%
|
775,000
|
780,000
|
-0.6%
|
Lemont
|
16
|
13
|
23%
|
326,250
|
192,000
|
69.9%
|
Lisle
|
8
|
12
|
-33.3%
|
272,050
|
261,000
|
4.2%
|
Naperville
|
102
|
85
|
20%
|
379,950
|
335,000
|
13.4%
|
Wheaton
|
44
|
35
|
25.7%
|
324,000
|
285,500
|
13.5%
|
Woodridge
|
9
|
11
|
-18.2%
|
212,000
|
166,000
|
27.7%
|
Saturday, March 23, 2013
Rent To Own - Frequently Asked Questions
Here are some answers to the most common questions we receive about rent to own.
How many year contract do I have to sign to rent?
Rent to own contracts usually range from 1 - 3 years, but occasionally they are shorter or longer depending on the tenant's situation.
When will the buying process begin?
While you are renting to own, you should meet with a mortgage broker to find out what you would need to do to qualify for a loan. (For instance, improve your credit score, save more for down payment, pay off debt, stay at your job longer, get a salary increase, finish school, sign up for credit repair or credit counseling, etc.) Once the mortgage broker says you are pre-approved, then you start the formal process to get a loan to buy the home.
How much down payment do I need?
Rent to own contracts usually require the tenant-buyer to pay 3-5% of the purchase price before moving in. For a $100,000 home, you would need about $4000. For a $200,000 home, you would need about $8000.
Are there any closing cost?
You would only pay closing costs if your loan is approved and you purchase the house and become the homeowner with the title in your name. The bank providing a loan would work with you to determine those closing costs.
How much monthly payment do I have pay?
Rent to own homes generally range from about $1200 to $2500 per month depending on the size and condition of the home, but occasionally we have homes available for less or for more than those amounts.
Who is responsible if something goes wrong?
During the rent to own process, tenant-buyers usually handle the costs of minor repairs and maintenance as they work to become the owner of the home, and the landlord-seller will continue to handle larger capitol improvement costs -- such as a new furnace or new roof.
What if I don't want to buy by the end of my rental agreement?
Rent to own is also called Lease-Option because you have the option to purchase but you do not have to buy the home! If you decide to move out at the end of the rental agreement, you are free to do so. You will not receive any refund of any monies paid, and you will be responsible for any outstanding charges for rent, late fees, damages, etc. Sometimes people choose rent-to-own to "try out" a neighborhood, and then decide to buy somewhere else when the lease ends.
How many year contract do I have to sign to rent?
Rent to own contracts usually range from 1 - 3 years, but occasionally they are shorter or longer depending on the tenant's situation.
When will the buying process begin?
While you are renting to own, you should meet with a mortgage broker to find out what you would need to do to qualify for a loan. (For instance, improve your credit score, save more for down payment, pay off debt, stay at your job longer, get a salary increase, finish school, sign up for credit repair or credit counseling, etc.) Once the mortgage broker says you are pre-approved, then you start the formal process to get a loan to buy the home.
How much down payment do I need?
Rent to own contracts usually require the tenant-buyer to pay 3-5% of the purchase price before moving in. For a $100,000 home, you would need about $4000. For a $200,000 home, you would need about $8000.
Are there any closing cost?
You would only pay closing costs if your loan is approved and you purchase the house and become the homeowner with the title in your name. The bank providing a loan would work with you to determine those closing costs.
How much monthly payment do I have pay?
Rent to own homes generally range from about $1200 to $2500 per month depending on the size and condition of the home, but occasionally we have homes available for less or for more than those amounts.
Who is responsible if something goes wrong?
During the rent to own process, tenant-buyers usually handle the costs of minor repairs and maintenance as they work to become the owner of the home, and the landlord-seller will continue to handle larger capitol improvement costs -- such as a new furnace or new roof.
What if I don't want to buy by the end of my rental agreement?
Rent to own is also called Lease-Option because you have the option to purchase but you do not have to buy the home! If you decide to move out at the end of the rental agreement, you are free to do so. You will not receive any refund of any monies paid, and you will be responsible for any outstanding charges for rent, late fees, damages, etc. Sometimes people choose rent-to-own to "try out" a neighborhood, and then decide to buy somewhere else when the lease ends.
Thursday, February 28, 2013
Illinois Supreme Court Rolls Out New Foreclosure Rules
On Feb. 22, the Illinois Supreme Court announced new rules establishing a uniform protocol when it comes to the foreclosure process. Among the rules outlined in the court's news release:
- Lenders must provide homeowners with information about the process and consequences of foreclosure.
- Lenders must seek modifications with eligible homeowners before completing a foreclosure.
- Improved legal notices to owners are required throughout the process and before a foreclosure sale.
Tuesday, January 15, 2013
Just Bought His First House!
Adam and Diane from Happy Home Solutions were so excited that our client Tyree was so excited about buying his first house, we thought we'd show you!
Watch this short 20-second video clip and you'll see what we mean: Tyree Just Bought His First House!
Neither Tyree's mother or father ever owned their own home -- they were renters their entire lives and just paid off their landlords' mortgage instead of their own.
That's a fatal financial flaw made by far too many Americans.
Don't let it happen to you -- buy a house as soon as you can and start realizing the many benefits of home ownership, including:
* Pride of Ownership
* Security
* The ability to make changes you want to the home without having to ask your landlord's permission
* Appreciation in the value of the home (yes, appreciation is back!)
* Historically low interest rates
* Tax advantages like rich people get even richer off, as in, you might not have to pay any more taxes because you can write off so many expenses from home ownership!
* Get all or most of your withholding tax back too! Once you own a home, you can probably just stop letting your employer even take them out of your paycheck to begin with!
If you can't qualify for a traditional mortgage, you can probably qualify for Rent to Own and possibly even seller financing.
Call Adam today at 630-697-4500 to find out how you can become a homeowner!
Visit us on the web at MyHappyHomeSolutions.com
Watch this short 20-second video clip and you'll see what we mean: Tyree Just Bought His First House!
Neither Tyree's mother or father ever owned their own home -- they were renters their entire lives and just paid off their landlords' mortgage instead of their own.
That's a fatal financial flaw made by far too many Americans.
Don't let it happen to you -- buy a house as soon as you can and start realizing the many benefits of home ownership, including:
* Pride of Ownership
* Security
* The ability to make changes you want to the home without having to ask your landlord's permission
* Appreciation in the value of the home (yes, appreciation is back!)
* Historically low interest rates
* Tax advantages like rich people get even richer off, as in, you might not have to pay any more taxes because you can write off so many expenses from home ownership!
* Get all or most of your withholding tax back too! Once you own a home, you can probably just stop letting your employer even take them out of your paycheck to begin with!
If you can't qualify for a traditional mortgage, you can probably qualify for Rent to Own and possibly even seller financing.
Call Adam today at 630-697-4500 to find out how you can become a homeowner!
Visit us on the web at MyHappyHomeSolutions.com
Monday, January 14, 2013
Tips for your Home Inspection
An inspection may seem like an inconvenient cost when buying a home, but in the long run it can save you a lot of money and heartache.
(reprinted from W.J. Bradley's Insight)
An inspector, if they do their job well, will make you aware of issues with your prospective home, such as needed repairs or structural damage. If the inspector finds problems with the home, you may decide you can overlook them, you may try to negotiate the price of the home in anticipation of costs associated with the problems, or you may decide the house is not for you and keep looking. The point is that you are aware of the problems before they become yours to solve.
Finding an Inspector
Now that you know why you need a home inspection, how do you find a good home inspector?
Hire Your Own:
A seller may offer up an inspection report. While they may have the best intentions, it is always better to hire an individual you've vetted who is working for you.
Certification:
Ask your inspector if they hold any certifications or memberships that qualify them as a home inspector. An inspector can be accredited through the American Society of Home Inspectors. In addition, they may be a member of the National Association of Certified Home Inspectors.
Experience:
Ask how long they have been inspecting homes and request they provide references. In addition, ask if home inspection is their primary occupation.
Comprehensiveness:
What does the inspector cover in their inspection report? They should be able to provide you with a list. In addition, ask how long the inspector thinks the inspection should take. A normal inspection should take as long as 2 to 3 hours.
Errors and Omissions Insurance:
Even the best inspectors make mistakes, so ask if your inspector carries errors and omissions coverage.
The Inspection
Once you are ready for the inspection, make sure you are present when it occurs. Ask questions and pay attention to comments the inspector makes as you walk through the home. While a good inspector should have a camera, you may also want to bring your own to keep record and help you remember where the inspector found problems.
Finally, make sure you thoroughly read the inspection report. It may elaborate on problems the inspector pointed out during the inspection, or even include issues the inspector failed to mention during the walk through.
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