lake zurich...and beyond

This is not a bad thing. It may be inconvenient and a pain in the you-know-what, but it is essential to make sure that buyers can actually afford the house they want to purchase. 

I hear many people (agents and buyers alike) moan and groan about the new tougher loan requirements. Are they forgetting that it was the loosey-goosey requirements of the past several years that largely caused the housing mess we are in today? While I agree that we need buyers to be able to get loans in order to reduce some of the housing inventory and therefore strengthen the overall economy, we also need buyers to get responsible loans...loans that they can afford not just now but in 3, 5 or 7 years from now. 

I remember when my husband and I bought our very first house back in the early 1990's. Our financial situation was carefully scrutinized by the bank and we had to provide a lot of documentation in order to get our loan. We had to prove that we could afford it. That was just the way it was back then, and while it was inconvenient and a pain in the you-know-what, it is what you had to do if you wanted to buy a house. 

Fast forward to the last time we bought a house, in 2001. It was quick, easy and painless; way too easy to be approved for far more than we knew that we would be comfortable paying every month. Had we not been financially savvy enough to know what we could truly afford and stick to our predetermined budget, we may have found ourselves in hot water right about now. 

If you are a potential buyer with money saved for a down payment, good credit scores, a stable job and a few months before you need to be in your new home, now is still a good time to consider purchasing a home. One you can truly afford. Don't stretch yourself in the hopes that you will grow into the payment, as so many did in the past. Life happens: a marriage, a new baby, a divorce, a new job...and the payment you thought you could afford more easily a few years down the road could suddenly become completely unaffordable. 

My advice is to buy smart and embrace the tougher loan requirements of today. A few years from now you will be glad you did.

This is one of my "classic" posts that I thought I would share with all of you who didn't know me back in the beginning of my blogging days. This post was originally written on 8/9/07 and I'm sharing it with you today because I can't think of anything else to write about! Really!

 No Thanks, I'm Just Looking

Have you ever walked into a store and been asked by a salesperson, "Can I help you?"

Of course you have, and if you're like me, it can be irritating. While I appreciate the offer of assistance, it's the timing that ticks me off. It's too soon, feels too pushy. My standard response is, "No thanks, I'm just looking."

Invariably, after I've had a few minutes to browse, I find myself looking around for a salesperson because now I do need some help. I'll wander around for a while, looking for someone to help me. Where is that salesperson who so nicely greeted me with her offer of assistance? To be honest, if I can't find her relatively quickly, I may ask simply ask the next closest salesperson for her help.

Oops. Salesperson #1 has just committed a critical error. She decided that my "No thanks, I'm just looking" meant that I didn't want any help at all and she went on to assisting someone else and forgot about me. The reality is that most buyers, whether online or in person, just want the salesperson to leave us alone but be there when we need them.

Online real estate shoppers are like any other shopper. And I am, for all intents and purposes, a real estate salesperson.

Therefore, a visitor to my website, upon submitting an email address, will receive the following email from me:

"Thank you for visiting my website. I hope you will find it an easy to use and informative way to research the market.

It is my sincere desire that you feel comfortable using my website. Therefore, it is my policy to have you dictate the level of contact that you want from me. This means that unless you specifically request to be contacted by telephone, I will not call you!

Whether buying, selling, or just curious to learn more, I am here to assist you in any way possible. I hope you'll come back soon...and that you will consider me to be your REALTOR of choice when the time comes to buy or sell a home." 

And I mean it! I won't forget about you and move on to the next prospective client. I will stay in touch; from time to time you will receive a short email from me containing tidbits of information or announcing a new listing that you may be interested in. Other than that, I will leave you alone to gather information at your leisure.

If you need anything at any time...more information about a particular listing, perhaps...I will respond quickly to get you the information you need. I will never be pushy or pressure you into setting up an appointment with me to look at homes. It's perfectly okay to hang out on my website and window shop.

I am ready when you are and will be delighted to assist you as you purchase your new home.

Last Monday morning brought unsettling news both regarding the overall economy and the housing market closer to home. I don't like to be the bearer of bad news or to dwell on the negative, but I do believe that the public needs to understand the reality of the situation in order to make sound financial and housing decisions and real estate agents shouldn't walk around with blinders on.

The absorption rate in Northern Illinois could rise to about 16 months by the end of this year. I was also informed that prices may need to drop approximately 7% in order to stabilize our housing market. According to many experts a stable housing market has about 6 months of inventory. All of this means that we have not yet hit bottom here in Northern Illinois.

For some time now, I have been informing my sellers and potential sellers to be very realistic about pricing and also cautioning those that do not need to sell to keep their homes off the market or consider renting them out instead. It is hard, as an agent, to basically turn away business but in many cases it is what is in the best interest of sellers who either have little equity or no real motivation. Why add to the market woes by putting more homes on the market when absorption rates are already so high?

There is some good news, however. Homes that are priced correctly (and by correctly I mean not  at or above the most recently closed comparables, but priced less than those most recently sold homes - think 2003 or 2004 prices, folks) should sell in approximately 90 days. Of course, these are the best priced, best prepared and most updated homes. They don't back to busy streets, they are impeccably maintained, and they are the cream of the crop. Is your home the cream of the crop? If not, your price absolutely must reflect that.

By nature, I am a very positive person and always try to stay upbeat and look on the bright side. I keep looking for the light at the end of the tunnel and while I honestly cannot see that light yet, I do feel it is just around the corner. In the meantime, I, like many other agents, will continue to inform my clients what it will take to get a home sold in today's market and will not sugarcoat the truth. I will also continue to encourage nervous buyers to take advantage of what could be an once-in-a-lifetime housing sale.

It's not over until it's over, but this too shall pass. We just need to hang in there, stay informed, and react appropriately to the market conditions. If you are thinking about buying or selling a home, call me for honest advice and guidance. I'm here to help.

The Lake Zurich neighborhoods of Chestnut Corners and Hunter's Creek will be holding a joint neighborhood garage sale on September 18, 19, 20 and 21 from 9 am - 4 pm (Thursday - Sunday). Chestnut Corners and Hunter's Creek are located near the intersection of Cuba Road and Quentin Road in Lake Zurich, Illinois.

There will be a variety of items for sale: clothing, furniture, decorative items, toys, sports equipment, etc. If you are looking for some inexpensive items for that first apartment or college dorm room, garage sales are a gold mine! If you are a parent or grandparent looking for baby items or toys, this is the place! Need books for that home-based day care? Look here first! Garage sales can be a wonderful place to get a great deal on a variety of household items.

My garage will be open for business too. I'm selling a few TV's, an electronic keyboard, miscellaneous household decorative items, books, a small desk chair and plenty of other GOOD STUFF that I need out of my basement! Mention my blog and I'll give you a discount!

Here's a little secret for you...Thursday is the most popular day, so come EARLY to get the best stuff!

If you bought your new home without the assistance of a real estate agent, how will you know if you made a good decision? Consider the following scenarios:

Scenario #1: You stopped into a new construction neighborhood on your own and were wowed by the fully decorated models. The builder's sales agent informed you of all the incentives the builder is offering, such as free upgrades or $$$ off the base price. You sign on the bottom line, confident you got a great deal on your new home.

Scenario #2: While driving around on the weekend you notice a property with a For Sale by Owner sign in the front yard. The seller shows you around the house and tells you all the wonderful things about the house and neighborhood. You love it. The seller tells you that he won't allow you to bring your real estate agent since he doesn't want to pay a commission, and tells you that he's giving you a great deal on the home. 

Now let's examine each of the above scenarios:

In Scenario #1, did the builder show you what the other new construction homes sold for (and when) and what upgrades were added to those homes? Do you understand the difference in resale value and desirability of a 3 bedroom vs. a 4 bedroom house? What are the pros and cons of this new neighborhood that could affect your future resale value, such as the four lane road and lack of a traffic light at the entrance? How long will it take for the builder to complete all of the homes and how will that affect you if you need to move before the builder is done building? Is the discount you received based on you having to use the builder's lender for your loan? Will there be additional lender charges on your settlement statement that may negate the discount you just received? What will your taxes and assessments be when the property is fully improved? 

In Scenario #2, if you use a home valuation site or real estate website to pull up comparable properties on your own, do you know how to select the properties that are the most similar to the home you are interested in? Have you seen the comparable properties in person and do you understand the valuation differences based on location, age, amenities and condition? Are you aware if the comparables are closed (sold) or list prices (wish prices)? Has the seller provided the legally required disclosures to you and will he agree to make any necessary repairs? Is the property in a special service area or are there any pending or proposed special assessments that may affect your tax bill down the road? 

For both Scenario #1 and Scenario #2, do you know the proposed future use of that beautiful vacant land behind your new home? Do you know if it is zoned commercial or owned by the Illinois Department of Transportation (IDOT), for example? Are you aware of how many distressed (short sale/foreclosure) properties are in the area and how this may affect your property value? Did you hire a home inspector to find any defects prior to purchasing the property, even if it is new construction? Do you know how many homes are for sale in the area and how long they have remained on the market? Did you double check the school district information to make sure the home is in the school district you desire? 

Real estate agents help you do your homework so when you finally make your home buying decision, you can be fully comfortable with your choice. That's why we ask you a lot of questions about your bank pre-approval, your wants, your must-haves and your time frame for moving. We do this to help keep you focused so that you aren't swayed by fancy decorating or aren't lured by what appears to be a low price. We also point out potential problems with the property that may affect resale, whether that is a busy street, proposed construction nearby, strict homeowner association rules or a funky floor plan. And when you are finally ready to make an offer, we pull the comparable sales, tax records and plat maps and help you arrive at what would be a fair price to pay for the property. 

A great deal is not simply getting a certain amount off the purchase price. When you are ready to buy a home, call a real estate agent. We'll help you make the best decision possible!

On my way driving home from my office today I noticed 5 for sale by owner signs…all within approximately a one mile radius. This is a sudden increase in for sale by owner signs in the area, making me wonder if this is a sign of the times or of the times to come in our troubled real estate market.

There had been a noticeable decline in for sale by owner signs in the area over the past few years. Sure, there were still a few optimistic sellers who would put out a for sale by owner sign and hold a few weekend open houses, but by and large those signs would be replaced within two or three weeks by a local real estate company sign. Frustrated sellers discovered firsthand the true value of hiring a real estate agent to properly price, prepare and market their homes for sale. To be quite honest, they found that they needed us more than ever before.

So why the sudden increase in for sale by owner signs? I have a hunch that it has to with desperation. The decline in property values over the past few years has left many sellers cash strapped and with no other choice but to attempt to sell their homes themselves because they simply can’t afford to pay the real estate marketing fee and other costs to close. With little or no equity left, they are making the unfortunate decision to try to sell it themselves at what I feel is the worst possible time to go it alone.

It is even harder to sell a home for sale by owner in today’s buyer’s market and all the drawbacks to doing so still apply. On average, sellers who sell their homes themselves are on the market longer and net less than sellers who entrust the home sale process to a qualified real estate agent. Most sellers are unaware of what it takes to sell a home and are woefully unprepared to market their home appropriately.

Heck, it’s hard for real estate agents to get a home sold in today’s market…and we know every possible trick in the book!

If you are a seller who is considering placing a for sale by owner sign in your yard, read my article entitled, Let’s Play 20 Questions, by clicking here. Then give me a call. I’m here to help.