Set the Stage: Time to get real if you are going to buy a house. The mortgage banker will know your credit score and you should too. A great score is 850, a low score is 300. There are three credit bureaus whom you can contact: Equifax, Experian to find out your score for a fee or you may join a site like Quizzle.com who will give you your credit report for free.  Even though it’s a pain, your credit score sets the stage for a successful journey.

Tip:  Make sure to pay all of your bills on time, pay off any debts you can, and keep your credit card payments low.

Have a firm foundation:  Now it is time to decide on a down payment.  Be realistic (and don’t stop paying your rent yet). How much cash can you scrape together from your own assets? Are your parents willing to pitch in?

Tip: To avoid extra costs an ideal down payment of 20% is ideal, but most people pay 5-10%

Have all your ducks in a row:  In order to sit down with a mortgage banker, you will need your tax returns (including the W2′s or 1099′s that show your income), pay stubs, bank statements and any investment accounts you own.

Tip:  It is a good idea to be able to show your assets, income, and taxes for the past 3 years.

Know the lingo: Don’t confuse pre-qualified for pre-approved.  Knowing the difference between these terms can save you a lot of time and headaches.  Prequalification is an unofficial statement of what you can afford.  What you actually need is a “pre-approval” (these take a lot more paperwork) but with your pre-approval letter, you will know your true price range.

Tip:  You can use prequalification calculators on the Internet but it is best to deal with a mortgage broker to make sure everything is done properly.

Do your research: There are different mortgages out there so be sure to do your research and talk to someone about what option works best for you.  The most common mortgages when buying a home are a 30-year fixed rate mortgage (FRM), an adjustable rate mortgage (ARM), an FHA loan (for moderate-to-low income homebuyers) or perhaps a balloon mortgage (where after a period a large payment is due in one lump sum) may be right for you.  Have thorough discussions with whoever you chose to use for your mortgage about this subject and keep asking questions until you clearly understand what obligation you will be committing to when you sign each type of mortgage.

Tip:  Think long term when trying to find the best-fit mortgage.  How long do you plan on living in the home?  Will your income change in the next few years (a growing family, wanting to go back to school)?

Time to crack open the piggy bank:  Now it is time to determine how much house you can actually afford.  Falling in love with a house only to discover it is out of your price range is a frustrating—and all too common—happenstance for the first-time buyer. Save yourself some grief and learn beforehand how much house you can handle. Try Century 21’s affordability calculator to get a ballpark figure.

Tip:  CNN Money says that the rule of thumb when trying to figure out how much you can afford to spend on your home purchase is 2.5 times your gross annual salary.

These are the beginning steps to start taking if you are seriously considering of buying a home, but there are other things that need to be done and considered when making what could be the biggest investment you might make in your lifetime. That is why we will be offering more tips and knowledge on this process in upcoming blogs.  So stay tuned!

Even as you shovel snow and chip the ice that finally arrived in this delayed winter, know that the season changes again in only eight weeks or so. If you are planning to sell your house in the spring, now is the moment to get it ready.

Here are some tips to help:

Schedule a home inspection: Inspectors get busier as the weather heats up and getting an inspection now can save you lots of surprises later. You can get a jump on any needed repairs the inspection discloses. http://www.asknagel.com

De-Clutter: Use this “house-bound” time to get rid of the lifetime of junk you have accumulated. Donate clothes and toys. Take books/albums and CDs to your library or local nursing home. Throw away what you don’t need (and be tough on yourself. Piling things in the garage doesn’t count.) Consider hiring a home staging specialist (http://www.stagehandshs.com) to help make your home look like a model.

Get real about “Spring Cleaning”: Now is the time to scrub every surface of your home– from ceiling moldings to hardwood floors. Assume any potential buyers will be wearing white gloves. Wash or dry-clean curtains and bedspreads, get the carpets professionally cleaned (or replace them), make all the windows shine. Don’t forget vents, fans and behind appliances.

Give everything a fresh coat of paint: Nothing spruces up a home for so little money. Go for neutral colors on interior rooms with complementary accents on moldings and baseboards, so that the buyer can more readily see their furnishings in the home.

Consider new flooring: Hardwood floors are always in vogue and the new laminates mimic them very well with much less maintenance. If you already have wood floors, determine if they need refinishing. Schedule work to be completed about two weeks before the showings start (leaving less time for the floor to get scratched or dull.)

Check weather-stripping, screens and caulking: Winter wrecks havoc with weather-stripping. Replace any that is cracked and any ripped screens. Add new caulking around faucet, toilets and bathtubs.

Assemble your paperwork: Gather utility bills, home warranties, original sale papers, previous inspections, tax receipts and mortgage documents in one place for both the realtor and potential buyers to view. Check the local building department to see if you have any outstanding permits, judgements, liens or boundary issues concerning your property. All will take time to resolve.

Make a list for when the weather breaks: Have your house repainted outside, including the front door. Clean the outside windows. Replace the mailbox and house numbers. Set out new welcome mats. Have everything pressure washed–walks, driveway, porches, decks and any siding (which should also be checked for damage).

Schedule a landscape spring cleanup: Have overgrown trees, shrubs and bushes trimmed. Have stray leaves and sticks removed and unused garden beds attractively mulched. Plant spring daffodils and crocuses in front beds, window boxes, and pretty pots near your doors.

Bring a little spring inside: Color–whether it be floral pillows or your African Violet collection — will help potential buyers remember your home. Spray (lightly) a floral room scent near the front door. Keep scented wipes for quick cleaning, a sliced lemon to throw down the disposal.

Do you have any additional tips on how to get your home ready to sell?

With a little preparation and the help of an energetic team like the one at Century 21 Affiliated Chicago, this spring will have home sales busting out all over!

Visit for more info www.c21affiliatedchicago.com.

Here’s a 10 tips to make those prospective homebuyers actually cross your threshold and look inside:

1.     Clean the porch: Sweep and scrub the front porch (or consider concrete cleaner or new paint) and place some evergreens or potted poinsettias (replace when they begin to shed their leaves) on either side of the door or check out some artificial topiaries at Home Decorators Collection

2.     Hide what you need to keep: Rakes, shovels, snow blowers, and toys—anything that usually “lives” outside now needs to find a (neat) home in your garage, or invest in a shed.

3.     Light it up: Clean or replace any outdoor light fixtures and replace the bulbs. Make sure all lighting along the walkway is bright and in working order. Put the outdoor lights on a timer (so they go on even when no one is there) to give a clear view to prospective buyers driving by.

4.     Wash the windows: Both inside and out (remember the storm and garage windows) to give a clean appearance (vacuum out cobwebs and any dead insects.) Wash or repaint the shutters

5.     Paint the doors: Give a fresh coat of paint to all the doors of your home, even the garage door. Replace the doorknob and front door knocker with brighter brass. (Consider, too, making a good impression with new house numbers and a new mailbox.) Adorn the door with a seasonal—but not holiday—wreath of man-made materials. (You want it to last beyond the holidays). Consider a winterberry wreath to add a splash of color. Many retailers carry them or find directions here to make your own. http://www.thoughtfullysimple.com/simple-holiday-decor-winter-berry-wreath/

6.     Check for safety: Replace any cracked places or hazardous pavers on your front sidewalk and driveway. Have someone on-call to shovel both immediately if a snowstorm hits. Keep those surfaces ice-free with pet safe salt (Safe Paw is a good one.) If someone can’t get to your home safely, they can’t buy it.

7.     Start from the top: Make sure your roof looks good (no loose or missing shingles) and that gutters are leaf-free and intact.

8.     A Peak Inside: Entice potential buyers by having your front window lit up and the drapes open so they can get a little taste of your home inside.  So make sure that you have some great décor set up staging the part they can see.

9.     Install winter landscaping: Spruce, holly and evergreen bushes can add beauty to your winter landscaping. Make sure all dead branches are well-trimmed, your garden beds edged and you might want to hang color bird feeders from trees in your front yard. (Duncraft is a great source of many types of feeders.

10.  Look with new eyes: Have a friend drive by and tell you their first impressions of your home. Their comments, combined with those from your knowledgeable Realtor, will have your home sold quickly even when the winter winds are blowing.

During the holiday season, your to-do list may be as long as Santa’s beard, but with a little planning, this festive period might be the perfect time to sell your house.  A perfectly staged winter backdrop can mean ideal situations such as: less competition (as many homes are taken off the market now), the buyers are usually more serious at this time, and the market savvy ones have an eye on making an end-of-the-year purchase for tax reasons.

Here’s how to make buyers think of your house when they look forward to being home for the holidays:

Let there be light: Make sure the window glass is clean and then fling open the curtains. Light a fire during showings (use fragrant wood like apple). Turn on lots of lights.  Use a timer so lights go on every night whether you are there or not. Buyers may drive by and seeing a dark house (particularly when your neighbors homes are likely to be lit up) isn’t the best way to get noticed.  Don’t forget to turn on porch lights, too.

Warm things up: Turn up the thermostat. No one wants to come “home” to a cold house. Everything should be welcoming. Paint or polish the front door, shine the doorknob and buy a new doormat, too.

The nose knows: Bake gingerbread, sugar cookies or yeast bread before a showing to. Use scented soap in the bathrooms and holiday candles and bowls of potpourri throughout the house. People will warm to a nostalgic place upon entering.  Choose one or two scents only so the scents don’t compete (pine is clean and cinnamon gives a holiday feel without being cloying.)

Less is more: When it comes to holiday decor, stick to a simple wreath and pots of poinsettias outside (although you may stick a red velvet bow on the “For Sale” sign) and simple, non-denominational decorations inside. Scented pinecones and ribbons, a carefully decorated tree (an artificial one is best so there is no need to vacuum before unexpected showings), or some boughs and berries on the mantelpiece are best. Stash your personal decorations and pile of presents in a closet so potential buyers can better imagine themselves in the home.

First impressions count: In winter, when the trees and bushes are leafless, more of your house shows itself, making curb appeal even more important. Make sure any paint or siding near the foundation is clean, the garden beds raked and mulched, the sidewalks free of snow and ice and all exterior lights are working. Also, if possible, provide your Realtor with photos of your home during spring and summer seasons, so a potential buyer can see how the landscaping looks during warmer months.

Working with a professional Realtor like those on the team at Century 21 Affiliated Chicago can ensure your home gets sold quickly over the holiday’s www.c21affiliatedchicago.com and you are sure to have a truly happy new year.

When it comes to the real estate market, the sun will come out tomorrow, according to President and CEO of the Mortgage Bankers Association, David Stevens. In a recent interview with Inman News, Stevens said he believes that the real estate markets are stabilizing.

Delinquency rates are down to 8.5 % in the second quarter of 2011 (from 10% in the same period in 2010) and Stevens also points out that foreclosures are also down—even in the depressed states of Florida, Nevada and Arizona. This trend seems to be holding true in the Chicagoland area as well. New foreclosures filed in the Chicago area during September fell 34.8 percent compared with a year ago and dipped 15.1 percent compared with August 2011, according to figures released by the Illinois Foreclosure Listing Service (ILFLS).

Even in hard-hit Florida, existing home and condo sales continued their upswing in September.  According to the latest housing data released by Florida Realtors, increasing by 10 percent last month with a total of 15,036 homes sold statewide compared to 13,723 homes sold in September 2010.

Personal fiscal responsibility seems to be taking hold as well. The percentage of mortgages 90 or more days past due (the ones entering foreclosure) has been declining for six months, according to data kept by the Mortgage Bankers Association.

According to a National Home Builders Association analysis, 2011′s final quarter will see people in a better position to start spending money on housing again. Just in time, according to Stevens, who says home prices will never be lower and with new construction basically at a standstill, a home shortage could be on the horizon. Generation Y, those born between 1977-1994, are eight million strong and all will soon be competing for homes.

David Crowe, the chief economist for NAHB, told Builder Magazine he thinks new home sales will pick up late this year, followed by an increase in starts and building. “There will be some growth later in 2011 leading to great movement in 2012. We’ve built up substantial pent-up demand,” says Crowe, who estimates that at least 2 million households have delayed forming in recent years due to economic conditions.

The tide may already be turning, albeit slowly. According to Lawrence Yun, chief economist of the National Association of Realtors®, pending home sales remain above a year ago. The Pending Home Sales Index is 6.4 percent higher than September 2010. The PHSI in the Northeast is 4.0 percent above a year ago. In the Midwest the index remains 12.3 percent higher than September 2010. In the South pending sales are 5.0 percent above a year ago. In the West the index is 5.6 percent higher than September 2010.

Though not quite time to break out the bubbly, all in all, optimism is called for now. When it comes to real estate, it may be time to bet that bottom dollar.

C21 Affiliated Chicago CEO Tom Bretz noted: “One comment from the story[by Savage] is that people aren’t feeling confident and that lack of confidence leads to people taking their money and paring down debt as opposed to investing or buying things–not entirely a bad thing, but it is hard to see where the growth is going to come from without consumer spending. One reason the article gives for this general lack of confidence in the economy is a lack of confidence in leadership. I wonder how the Occupy Wall Street (and its spin-offs) will begin to pressure our lawmakers on both sides of the aisle. Regardless of your political leanings, an engaged citizen base pressuring lawmakers to get their fiscal house in order can’t be a bad thing, can it?”

Though consumers are uncertain about spending because of the Washington gridlock, the news isn’t all bleak. Because of the increase in home sales, now is an excellent time to enter the housing market and buy a home in this buyers’ market. The average interest rates on 30-year mortgage loans are at their lowest points in decades, from 3.94 to 4.11 %.  Despite the appearance of inaction in government, there are many government programs and initiatives to help homeowners and encourage home ownership.  One example is the Good Neighbor Next Door Program that offers single –family homes at a 50% discount to teachers, firefighters, and police officers who move into certain communities.

If you’re not eligible for that program, there are still numerous options for homeownership. There are grants available for low-income housing through the HOME Act and the American Dream Down Payment Initiative, which are both available through HUD. If you’re looking for help from private institutions, Bank of America and other lenders provide homeowner assistance and home loans to buyers. Potential home buyers can also contact real estate brokers like Century 21 Affiliated for information.  Though consumers are wary about where to spend their money, home ownership is a valuable investment that will help provide for homeowners’ futures. Hopefully, more home ownership will lead this rocky economy onto a smoother path.

Before you buy a house, you have to ask yourself the Suze Orman question: Can you afford it? Usually a home costs three times your income. Calculate the mortgage, debts, and expenses of a house to figure out the actual cost of the house before you think about buying.  After you make sure you have enough money for the house and extra expenses, contact a real estate agent. A real estate agent will look at houses in your price range, inform you about homes that are new on the market, and give you advice about when to buy.

After the agent helps you find a home in your price range, you should look at not only the house, but the whole neighborhood. Research the schools in the neighborhood if you have school-age children and the safety of the neighborhood as well. Good schools often add value to homes in the neighborhood. Find out about property taxes and other fees for the homes in the neighborhood. Take your time to find just the right house, even if it takes several months.

Once you and the real estate agent have found everything you want in a home, you still need a loan to purchase a home. You should make sure your credit is in good standing before you even apply for a loan.  You usually need to put down 20% as a down payment, but there are exceptions. First-time buyers can apply for an FHA (Federal Housing Administration) loan, where the minimum down payment can be as low as 3%. There are many different types of loans available, such as loans for veterans, and you can hire a mortgage broker to learn about them. Mortgage brokers act as intermediaries between home buyers and lenders, processing paperwork and negotiating between home buyers and banks.

After you get a loan for the house, negotiate with your agent and the seller for a fair price for the home.  The longer the home’s been on the market, the more flexible the seller should be on the price. Get the home inspected by a professional inspector for any needed repairs. If repairs need to be made, renegotiate with the seller to pay for the repairs. It’s a buyer’s market, so the seller should be more flexible to paying additional costs to sell the home.  A foreclosed home is often sold as is and the repairs are made by the buyer. Foreclosed homes also require additional paperwork and conduct a title search to see if they have liens on the home as well.

Once you’ve reached an agreement, the closing on the house can begin and you’re almost a homeowner.  However, there’s still a lot more to do before you close on the home. You have to pay the closing costs on the home-typically a variety of fees by the lender and other people involved with the sale.  The closing costs are usually three to five percent of the loan amount.  Sometimes you can ask the lender to pay the closing costs in exchange for a slightly higher interest rate on the loan. You have to get homeowner’s insurance and title insurance. The homeowner’s insurance protects you in case something happens to the house. The title insurance protects you if someone else claims they own the house. A recent Freddie Mac survey found that interest rates on mortgages will remain low at an average of 4%, so keep your interest close to that rate. Walk through the house one more time to make sure there are no more repairs needed. Hire a lawyer if you can’t understand the paperwork you have to sign. Once you understand and sign all the paperwork-congratulations! You’re a proud home homeowner.

Some experienced veterans may argue that it’s possible to buy or sell on one’s own to save a little money. But do you really want to cut corners with something as significant as the sale of a home? Sure saving in other areas is great – buy discounted furniture, go to yard sales to find unique decorations, or paint the house yourself. But it’s too risky to be stingy during the buying and selling process! You’ll find that the professional and personalized guidance of a real estate agency such as Century 21 Affiliated Chicago is truly priceless!

Think about it – do you know how many forms you have to fill out or which papers must be filed? Buying and selling homes is a complicated process that you don’t want to risk screwing up. Remember, it’s one of the most significant things you’ll ever purchase or sell so let a real estate agent do the work for you!

Why should you choose to go through an agency?

·      Local knowledge – an agent is well acquainted with the areas they serve, and as a result they can keep you informed on neighborhoods and local schools to help ensure you’re making the best choice for you and your family.

·      Technology and resources – agencies often have the most cutting edge and up-to-date technology at their fingertips. If you’re selling, they know how to make your home more visible; if you’re buying, they can help you sort through the confusion and get right to the homes they know you’ll love. This connectivity can prove invaluable!

·      Full-time commitment – buying and selling homes is an agent’s job and top priority. They will commit themselves fully to this cause and do most of the leg work for you. This means you have more time to focus on your job, your family, or whatever it is you enjoy most!

·      Experience– agencies know what they’re doing! Take the Century 21 Affiliated brand, for example. In 2010, they completed in excess of $6 billion in transaction volume and completed 4,500 transactions thanks to their 450 agents. Their experience certainly paid off!

So when it comes time to buy or sell your home, whether it’s your first time or you’ve been around the block a few times, trust a local and professional real estate agency. In the end, you’ll avoid irritating and excessive headaches and be happy that you did!

The real estate market is seasonal. The time of year makes a big difference for buyers and for sellers. In Chicagoland, the spring and summer are the busiest times for home buying and selling. In fact, the volume of home sales has been highest in June, July or August every year since 2000.

For Chicago neighborhoods like the Fulton River District and Wicker Park the timing trend holds true and summer is the best time for real estate transfers.

The Best Time to Buy

The best time of year for buyers is July and August, and December and January. Home prices usually retract during these months, which is good news for buyers. There are fewer other buyers to compete with because they have bought earlier, people are going on summer trips, or have committed themselves to some family time with holidays.

Real estate pricing follows mini cycles within the larger seasons. In March and September, prices tend to go up in anticipation of these prime selling seasons. Waiting a few weeks to buy can save you tens of thousands of dollars on the final sale price.

The Best Time to Sell

On the other hand, the best time to sell your property is the opposite of the best time for buyers. Late spring and summer are the best times to market your home because of the timing of buyer demand. It’s easier to tour homes when the sun is shining and the kids are out of school than when the snow is falling and schedules are booked up. Families with children are most actively looking at homes in the late spring and summer so they won’t have to uproot the kids in the middle of the school year and can use the summer to get used to the new neighborhood.

Life happens though and sometimes we can’t list our house at the perfect time. If you have to sell at an off time of year, you can still take advantage of the season. Maximize curb appeal by keeping the walk and driveway clear of snow and slush, or play up holiday decorations to highlight the best features of your home. On the plus side, there will be less competition during these off times. Buyers can also move very fast at this time and ask for a quick closing.

Knowing the details on your local market is the best way to gauge the right time to buy or sell. National trends have little bearing on what’s going on in your town or neighborhood. Be hyper-local and look at sales trends, including timing and prices, in your community, street and even your building.

Of course, price is the ultimate decider in real estate. Knowing the ins and outs of the real estate season can garner you the optimal price.

]]> http://century21affiliatedchicago.wordpress.com/2011/07/19/the-timing-of-real-estate-why-summer-is-best-for-buyers-and-fall-is-best-for-sellers/feed/ 0 century21affiliatedchicago http://century21affiliatedchicago.wordpress.com/2011/06/16/hey-c21-affiliated-chicago-fans/ http://century21affiliatedchicago.wordpress.com/2011/06/16/hey-c21-affiliated-chicago-fans/#comments Thu, 16 Jun 2011 15:59:56 +0000 century21affiliatedchicago http://century21affiliatedchicago.wordpress.com/?p=85 ]]> Thanks for finding your way here! Welcome to our new blog where you can stay up-to date on Chicago’s property market and our events.

June is a big month for us:
• Last week Century 21 was featured on TLC’s Cake Boss. Buddy constructed one of his infamous cakes for C21’s 40th anniversary. Here is a clip http://www.youtube.com/watch?v=g6brsXtrXrE.  . Check it out!

• Our first Rent vs. Buying Seminar will be on June 22 at 7p.m. We will be discussing the pros and cons of buying versus renting in today’s housing market along with our friends at Chicago Apartment Finder. Please R.S.V.P to sandi@c21affiliated.com to reserve your spot.

• Stay tuned for this month’s e-newsletter chock full of useful information to help you navigate the Chicago real estate market. This issue will feature a Q&A on mortgages and a profile of the Fulton neighborhood.

Stay in touch with all things real estate with our blog, which has a new location here on WordPress. Be sure to subscribe to the feed, add it to your reader, or bookmark it so you get our insights on the Chicago property market.