Time to Service and Clean your HVAC!

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@properties, chicago, condos, HVAC, kevin van eck, Lake Effect Real Estate, maintenance, real estate, single family homes, townhomes, Townhomeshop

It’s something we rarely think of as we switch our HVAC from cooling to heating in the Fall, but if you haven’t had a tune-up and cleaning yet, make sure you get one before your furnace is running through the Winter! Without stating the obvious, Chicago Winters are tough enough; make sure you don’t lose your furnace during one.

From a real estate agent perspective, we see it all the time during inspections where there is no documentation of regular maintenance and no sign that the furnace has been cleaned or serviced. While furnaces can last 15 years (and often much longer), this requires regular preventative maintenance.

It’s recommended that the HVAC system is serviced by a professional when the seasons change from Spring to Summer and again from Fall to Winter. Ensure that when you have this done it is either documented on the furnace (often times the servicer will leave a sticker and log on the furnace) or that you keep any work order or receipt. This will help provide a potential buyer comfort, and possible eliminate you having to reduce the price or give a credit when you sell your property (or, worse yet, having to replace the furnace).

Definitely have your HVAC serviced by a professional to ensure you stay warm in the winter and protect your money, and in the meantime check out one of my older posts regarding winterizing your HVAC: Winterizing Tips

Don’t Miss Out On the Sale!

Take Advantage of the Opportunity in Front of Us

We are in the most opportune time for new homeowners to purchase. You’ve been hearing it for the last year or so, and you will continue to hear it. For those that are ready, willing, and able to purchase a new home the keys to making a great decision are here. We have continuously record-low mortgage rates and pricing is at it’s lowest point in Chicago real estate since 2002 (S&P). As Brian Buffini, renown real estate speaker is screaming from his podium, “We’re having a sale!”

Fear of the Future

Based on what we’ve seen over the last 4-5 years since the beginning of the decline in real estate values, it’s easy to understand that many are afraid of homeownership, and the potential loss that many homeowners that bought in the bubble are experiencing now. But if home-buyers do the research, team up with a real estate professional, and make smart decisions based on what their individual situation is, there shouldn’t be fear. There should be an excitement to take advantage of the aforementioned “Sale”! Take a look at the Forbes article here outlining the financial benefits of buying over renting, even in a slowly-growing economy. But also read how the time to buy isn’t right for everyone. That’s why it’s important to work with professionals you trust, and be sure to buy within your means.

We’re On Sale!

With the decline in property values, the $350,000 condo you wanted, in the neighborhood you want to be in, may now be within reach. With the number of distressed properties on the market increasing, both for short sales and the looming foreclosure inventory, the deals are numerous. Of course, with each of these situations you want to be sure to team up with a real estate professional in your area to outline what each of these types of transactions entail, but the opportunity for instant equity is out there.

For those looking to “trade up”, that is, outgrowing your current home and looking for a newer or larger home, the same opportunities apply. Sure, you may be taking a hit on your current home, you may have lost the perceived equity you had in 2006, but remember that the larger or newer home is on sale as well. If you’re purchasing a more expensive property that was hit by the same “housing crisis hammer” on a percentage basis, you’re “saving” more on your purchase than what you’re “losing” on the sale.

Cheap Money!

Financing is more affordable than ever, with most mortgage products hovering around or below 4%. This Wall Street Journal article puts the math together. The question always comes up: “What if the market continues to drop?”. Put frankly, the market will probably continue to drop. That’s almost certain. Different statisticians, lending institutions, and real estate experts predict a further 5-10% drop in Chicago real estate values before we hit the theoretical bottom. What we don’t know is when we hit the bottom. All of these individuals that report on market values report in arrears, meaning that when we know we’ve hit bottom, we’re already on the way up. Timing housing values in this way is like trying to time the market. By the time we know a given stock has hit a high (or a low), it’s already on its way in another direction. In the same light, we can’t time interest rates. We don’t know how long they’ll stay this low, and we don’t know how quickly they will increase. We can guess, but again we’re trying to time the market.

Financing, and specifically the interest rate, have more influence on the affordability of homeownership than the actual purchase price. If we do the math, if you’re looking to spend about $2,000 a month on housing, you can purchase a $400,000 home with an interest rate of 4.5%. However, with a 1% increase in interest rates, up to 5.5%, and you’re still looking for a $2,000 a month payment, your purchase price ability has dropped 10% to $360,000. Again, interest rates affect your monthly payment and purchase price ability moreso than the actual purchase price.

Really?

Yes, really. If buying a home or making a move is something you’re considering, make contact with a real estate professional and look at the options in your market. But first, look at your own finances and determine what you’re able to pay on a monthly basis for housing. Then work backwards with your agent and lender to determine the right price point for you. Don’t miss the SALE! You will regret it if you do.

Other Experts

Here are some other links to articles from experts pushing the strength of homeownership:

Market Watch

JP Morgan Asset Management

New Listing from The Chicago Short Sale Team – $169,000

The Chicago Short Sale Team just listed a great home in the Dunning neighborhood of Chicago.

 

This gorgeous, brick Georgian home is an amazing opportunity. This single family home is on a full lot and features 2 bedrooms, and 1.1 baths. The living room, dining room and kitchen are all flooded with light during the day. The 2.5 car garage was built in 2002. Steps from Hiawatha park and the forest preserve. Don’t miss this short sale opportunity! See the full listing at 3435 N Pacific Slide Show.

 

 

If you know anyone who is looking to buy or sell real estate in Chicago, and specifically interested in a short sale, make sure you send them to The Chicago Short Sale Team. Email us at info@thechicagoshortsaleteam.com or call Kevin Van Eck at 312-208-1430

Home Affordability Changing?

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@properties, affordability, chicago, condos, financing, foreclosure, home buying, interest rates, kevin van eck, real estate

Based on the December Housing Scorecard from the Obama Administration, home affordability is stable. There are a few factors that could easily start to swing this, including rising mortgage rates and a restart in the foreclosure boom following the temporary hold because of lender procedural issues.

Check out this article from RIS Media highlighting the scorecard: http://rismedia.com/2010-12-26/december-housing-scorecard-shows-continued-home-affordability/

And, as always, be sure to consult with your local real estate professionals on current market conditions in your area!

The Chicago Short Sale Team Can Help!

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@properties, chicago, condo, default, foreclosure, kevin van eck, Lending, mortgage, real estate, short sale

The Chicago Short Sale Team Has Formed!

Over the last 18 months Kevin Van Eck and Zak Herman of @properties have been successfully closing short sale transactions. We’ve teamed up and along with our recommended vendors have started The Chicago Short Sale Team.

With our real estate experience and our short sale success, we know that we can continue to help homeowners in distress avoid the disaster of foreclosure. We have the resources, the contacts and the diligence to ensure as smooth of a transaction as possible, and we advocate for our clients on all fronts.

Please visit our temporary website at www.thechicagoshortsaleteam.com or search on Facebook for The Chicago Short Sale Team.

As with all of our business, referrals are the key, and we would love to help your friends, neighbors, co-workers, and family out of a bad situation. Have them contact us!

West Loop Developer Drops Prices!

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@properties, chicago, condos, lofts, price drops, real estate, VB1224, west loop

The developer of the VB1224 Lofts at 1224 W Van Buren in Chicago has dropped their pricing.
There are 20 units being marketed, with one bedroom loft units starting at $219,900. Garage parking is available based on the unit.
The great news is that all finishes are now standard, but buyers still have a wide variety of selections to choose from. The appliance package is upgraded Bosch, and the flooring selections include 4 inch planks. There is also special developer financing through the preferred lender.

Check out the building at http://www.vb1224.com/, but the new pricing is not updated on the site yet. Contact me for information or to set up an appointment!

565 Quincy – Price Drops!

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'565 quincy' 'chicago' 'condos' 'west loop' 'Q room' 'real estate' 'Belgravia' 'new construction' development

Over the last year we’ve seen developers of new construction condos in Chicago finally start dropping their prices to conform with the market. First was R+D659 and others soon followed.

The latest pricing drop is coming from the Belgravia Group at 565 Quincy. Belgravia is one of the best residential condo developers in Chicago. They’re known for their quality work and unique amenities. In 565 Quincy’s ‘Q Room’ there is a private bowling alley, a movie theatre, a fitness center, pool tables, foosball tables, a putting green, and more!

Based on the reputation of the builder, the location of the building and the amenities offered, and now the pricing, it’s definitely worth a look! Check out http://www.565quincy.com

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Is 2010 the Year for You to Buy a New Home?

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2010, @properties, agent, broker, chicago, condo, first-time buyer, home, homeowner, house, interest rates, kevin van eck, Lender, Lending, lincoln park, loan, mortgage, property, real estate, realtor, Tax Credit

Here comes 2010 and you’ve been tossing around the idea of buying a new home, but you haven’t really looked into it. With the ‘triple-play’ for buyers, it’s worth a look, and I hope you’ll see why!

The Facts:

Here is what the ‘triple-play’ consists of (and I’m sure this isn’t news to most people):

1. Tax Credit – it was a good deal in 2009, but since the new legislation was passed it has opened up the door for the credit to many more. The cap on the income level was raised and now it’s not just for first-time homebuyers. If you’ve owned your primary residence for at least 5 of the last 8 years and purchase a new primary residence,  you could be eligible for up to $6,500. If you are a first-time homebuyer, your credit could be as much as $8,000. That’s a little more than pocketchange but the new deadline to be under contract on a property is April 30, 2010.

2. Interest Rates – interest rates continue to ride lower than ever before. This is a direct result of the government buying mortgage backed securities to ‘buy down’ mortgage interest rates. Without getting too technical, the money that the government had set aside for this is starting to dwindle, and many experts think it may be exhausted by mid-Spring. As we know from history, especially in this industry, there is no crystal ball. But from what we know at this point, the only direction interest rates are going to move is up.

3. Housing Prices – echoing my crystal ball comment from above, if you had asked anyone in 2004-06 whether the housing market would crumble, the majority would have answered ‘No way’. Surprise. I don’t pretend to know what’s going to happen to housing prices in the next year or two. I can’t say whether or not we’ve hit bottom or if we’ve flattened out  and when it will begin trending up. One thing I do know is that by the time we know we’ve hit bottom we will have already been moving upward. The days of flipping a house by the average buyer are gone. If you’re buying a home or property you should plan to hold it for at least five years.

What Should You Do?

First, despite what we’re taught to do in America, find out how much you can spend. We have a tendency to look at what we want to buy before we know if we have the money to actually purchase it. Find a mortgage professional who is a friend or maybe your friends and family have worked with. Otherwise, find a reputable bank or mortgage bank/broker (they’re different) and see if you can get a pre-approval. That pre-approval comes in handy when you’re interviewing your Realtors and certainly when you and your agent put an offer on a property. But most importantly, that pre-approval tells you what you are able to spend. It ensures that you’re not searching for a $600,000 property when you are qualified for a $300,000 property.

Next, remember that just because you’re qualified for a $300,000 home doesn’t mean you should (or even can afford to) purchase at that level. No one knows your financial responsibilities better than you. It’s time to take a conservative approach and determine if you have the resources and reserves to purchase a home.

Simply Put

1. Ask yourself why you want to buy a home

2. Review your savings and current investments

3. Talk with a mortgage professional

4. Interview a Realtor

Is It Time?

It may or may not be the time to buy for you. If you’ve found that you have the ability to purchase a home and it’s a good move for you, that’s great! There are so many factors that you can take advantage of. If you’ve decided that it’s not the right time, that’s great too. You’ve saved yourself some regret down the road if you’ve at least looked into it.

One major point to remember, never let anyone push you into buying. Whether it’s your family, your friends or any professional you may be working with. Home-ownership is a joy that you have to want for yourself.

I’ve met with several clients who have decided that, after investigating their options, now offers them an opportunity like no other. Don’t wait, investigate!

Going FHA? Changes Are Coming…

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@properties, agent, building, chicago, condo, FHA, home, HUD, kevin van eck, Lender, Lending, loan, mortgage, property, real estate, realtor, townhome

FHA

It used to be that FHA lending was rare, and hardly used because of it’s requirements, except for those without the liquidity or cash to put a large down payment on a new home. But with the current economic climate the percent of lending that is FHA-backed has jumped from under 5% to almost 30% of all new home loans originated. Why? Because with an FHA loan, a buyer has the potential to purchase a new home, if qualified, with only 3.5% down on the purchase price. This has given buyers, especially first-time buyers who have secure employment and decent credit scores the ability to purchase a new home without having the typical 20% down payment.

Changes?

Since the Department of Housing and Urban Development started talking about revamping the FHA lending process this past summer, there has been a lot of hope among buyers, lenders and real estate professionals. HUD announced that they were relaxing some of the requirements, especially for condos, that limited the number of buildings/units that were qualified for purchase using an FHA loan. Initially, these changes were supposed to have been in place at the beginning of October, 2009. That date has been pushed back until February, 2010, for most of the changes. In regard to condos, however, there are some changes that are going to be implemented as of December 7, 2009. This means that buildings and condos that were previously not eligible to be purchased with an FHA loan will now be on the spread for FHA buyers.

More Changes?

According to the blog at Best Chicago Condos (http://www.bestchicagocondos.com/blog) and the Chicago Tribune, there are more changes on the way that will potentially raise the amount of cash needed for a down-payment, a higher credit score requirement and a rate-hike in mortgage insurance premiums that are charged. The changes are supposed to be announced in January but there is not date yet for when these changes might become effective. It very well could be tied into the other changes, discussed above, that will become effective in February, 2010. Check out the blog at that site for more details.

So, what does this mean?

Well, if you’ve met with a mortgage professional already, and your plan is to purchase with an FHA loan, you’ll want to talk with your lender or real estate agent about these changes, how they will affect you, and ask them to keep you updated on any pending changes (if they’re professionals focused on service, they will without you asking!). They’ll be able to decipher the confusing information that’s produced on the government websites.

We’ll need to wait and see what these changes might be and then determine if FHA is still a viable alternative to conventional mortgages.

The Home-Buyer Tax Credit – Make it work for you!

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$8, 000, @properties, agent, chicago, financing, first-time buyer, home, kevin van eck, Lender, loan, mortgage, realtor, Tax Credit

The weather is getting colder in Chicago (despite the last few days of abnormal warmth) and it’s time to get out the winter gear to survive the next few months of snow. BUT: THE GOOD NEWS STARTS NOW!

You may have heard that the Home-Buyer Tax Credit has been extended and also expanded. As with anything that is generated from our government that involves taxes, it can be tricky and confusing to figure out if you qualify. I’m hoping to help you understand what it means and how to put it to work for you.

Starting December 1, 2009, and running through April 30, 2010, the tax credit extension has provided more time for home buyers to take advantage of the $8,000 tax credit. Now, the name, the ‘First-Time Homebuyer Tax Credit’ has been changed to reflect the modifications from the initial tax credit offered.

First, single, first-time home buyers who earn less than $125,000 in adjusted gross income and married first-time home buyers who earn less than $225,000 total, are all eligible to receive the full $8,000 tax credit. For those who make more than those ceilings, there is a phase out scale that provides a portion of the credit up to $20,000 above those limits.

In addition to first-time home buyers, those who have not had ownership in a home for three years or more prior to their purchase of a new home are eligible for the $8,000 credit as well (the same income limits apply here too).

Now for the exciting part! The ‘New and Improved’ tax credit now also provides for those who currently own a home and are looking to sell and buy a new home. The same income limits apply, and the seller must have owned the property for at least 5 years (no flipping here). The tax credit available is $6,500. Not bad! Especially considering that mortgage rates are still low and prices are still very attractive so trading up (or down, you don’t need to buy a more expensive home than the one you sell to receive the credit) is a viable option for many! The only limit is that the home you buy has to be below $800,000 in price.

I have easy to use charts that show all of the terms of the tax credit so contact me if you want more information at www.kevinvaneck.com. I hope that this helped explain how you can use the tax credit to your advantage, and whether or not you qualify.

I have a feeling this winter is going to be different. I’m going to be trudging through the snow with a lot of buyers and sellers. It might be time to get a new pair of boots.