Real Estate Information

There are 2 different ways to go about updating your home or keeping your home up to date and add value when selling. 1 way is more costly than the other and it really depends on your Area, type of Home ( starter home, luxury home, Condo/Townhome) In Starter Homes and Condos/Townhomes you do not want to invest too much money so that you do not get back the investment you put into the Home. A Middle to Luxury Home actually takes on the word "Project", where a the others I consoder updating. When Updating a starter home if you replace a kitchen with the Kitchen of your dreams, you are more than likely to not get back any money on your return. So let's review today inexpensive updates for starter homes & condo/townhomes. Keeping your light fixtures, hardware, faucets, and colors up to date is really the easiest. I love to watch HGTV- Design on a Dime or Design to Sell for ideas. These programs go into homes and make them maginifcient on a budget. They paint rooms fresh and light colors, change out towel bars and such. Updating a kitchen Countertop even if laminate can cost as low as $100-$250 a home. They change light fixtures, add a few new colors, and re-arrange furniture to flow with the room and it's purpose. If you take a budget of $1000 dollars a year and use that to change out a few small items a year, you should be on course unless it has been years since you have done anything. I recently saw in an add a stainless steel appliance package at Best Buy for 2500.00. That included Refrigerator, Stove, Microwave and dishwasher. In a lower end home, you should not put in top of  the line appliances unless you require them. When needing a New Washer/Dryer try Craigslist.com for someone selling their used but lightly used set. I just got my Broker a Beautifully clean and almost new Huge Capacity, and on set for 300.00. They were a deal, and all because the Wife wanted the New Front load machines. This is also a great website for finding other appliances and even cabinets. My girlfriend bought barely used cabinets on Craigslist. She didn't like the color but the style and size, plus the Cabinet Pantry were a deal. So she purchased them and painted them white. Going from small cabinets and no space to the huge ones even though she had to paint them probably increased her home value a good 7,500 when she bought them for 1,500.00. Half the fun is the art of getting the deal. If you are not handy, nor your Husband then contact one of these great Handyman places were these wonderful gentleman that are retired and really know what they are doing. I  would save up numerous tasks and then have one come over. They are so polite and can handle so many diffferent tasks. Don't be afraid to try updating or keeping your home up to date on a budget. Ask tons of questions, look at magazines for ideas, and check prices. Even the littlest change adds value and happiness. If you need a Handyman, feel free to call me at 630-674-2215-

Karen 

In the current Home Market, it is difficult for many individuals to see any upside to the fact that their Home has decreased in value. I have mentioned in one of my previous Blogs that one positive is that upgrading from a current home to a home of greater value is extremely benefical at this time, which it seems is a concept that very few people find comfortable. Another positive that everyone should take advantage of whether you are staying or thinking of selling in a year or two when the market rebounds, is the Property Tax savings. Home property tax is based on the value of a home. Since values have decreased the property taxes should be decreasing. HOWEVER, let's not wait for the Tax Assessor's Office to lower your Property taxes, as then it may never happen. I myself fight my property taxes almost every year. There are several positive reasons for getting your taxes lowered. 1-You save money on your yearly bill 2- Your taxes will stay lower longer 3- If you go to sell and your taxes are lower than another home in the neighborhood you will appear more appealing.

Most people hardly look at their property tax bill or the assessment factor letter that comes in the mail because they escrow to the bank or because it seems "Alien" to them. I used to be that way too! So if this is a project you would not like to handle then contact a tax specialist to have them get your taxes lowered. Yes, paying to get the lowered is a price, but the money you save this year and next year, etc. outweighs the amount you pay a professional. OR, you can be like me and figure the system out. You can find  everything you need on the internet. It is all public information, and once you see how much your neighbor is paying, etc you will become addicted. I have found neighbors to be paying as much as 2000 less than me for the same home, and I have found 1 Home Owner paying 4000 more than anyone else with the same home. It is amazing. So let's take advantage of the public internet, and to the downside of the current housing market. If you have any questions, please feel free to contact me. This is a free service that I give to all my clients. I can not legally petition their taxes for them, but I can download all of the information and walk them thru the steps. Believe me this process becomes an obssession- Karen  

I just have to share with everyone the biggest topic around the Office! Everyone is talking about this new website by Jill Cataldo. Jill is a Coupon Cutting / Save Money Guru. This young woman offers classes and even does a few minutes each week on the radio. Her website is www.jillcataldo.com. I think the reason so many of my cohorts are discussing this young woman and her website is because deep down we all like saving money and getting things for almost free. It is a fun website! I know that many of our Husbands probably think we shop too much, or such. But I love when he peeks through my wears and I say, "I got that on Sale, and that on Sale, and guess how much I paid for this?" Nothing beats a good deal. Jill's website is really fun and really motivates you into wanting big savings on everything. One of the woman in my Office said to me, now I do not have time to drive around for all these great deals, but I carry everything with me just incase I happen to be driving by the store I need. Great Idea!  Just thought I would share some fun and savings! Happy Christmas Shopping too!-

Karen  

In today's market we are seeing many people chosing to rent rather than buy a home. People are concerned we may not be at the bottom of the housing market. If you are up to date on my post you may know that I still believe that Buying now is still a great time to buy, and that when we realize that the bottom was here we will already be on the way back up. However,  I still work with many Home Rentors, and while working with Home Rentors we talk about why they are not buying at this time, what and where they would like to rent, what they like about certain rentals, and even what legal issues they are obligated to while renting. Yet one big topic rarely pops into their minds. Do they need rental insurance! Of course wanting to protect my clients I bring this topic up during the rental process. It is amazing to see how many individuals either believe they will not need rentors insurance or that the landlord's insurance will cover them.

When a property becomes a rental property the Home Owner changes their insurance with their Agent down to fit their needs, not the Rentors needs. What often happens is that the Rentors believe that they do not need to cover their contents until it is too late! For instance I discussed with some clients that they really needed to have rentors insurance and why. After this past storm I was driving by their rental and stopped to say hello. WOW, were they disappointed with themselves for not getting the rentors insurance. They had stored some very prized possessions in the basement, only to have them ruined by the water that came in during the storm. They thought because the Landlord was responsible for the home and it's up keep that they would be covered. However , when the power went out and the sump pump quit due to lack of power it was beyond their landlords control. They are so upset with themselves and grieving about their loss. Then they called their insurance Agent to discuss getting rentors insurance, only to find out that it was not in fact as expensive as they thought. Thousands of dollars in stereo equipment, furniture, and other priceless pieces handed down from generation to generation gone for the cost of approx. 400.00 a year. Rentors insurance or Not Rentors Insurance, not really a question- Karen

In the past, there were 2 types of people buying homes in the Housing market, this is going back about 10 years or more. Those that bought a home  conventionally (good credit and put 20% money down) and those that bought a home through the FHA Program(those with alittle shaky credit and without the 20% down) Yep, that's right! No 100% financing programs, no mortgage Arms, No interest only home loans, no fun and creative financing. The Banks and lending institutions were not in the market of taking risk! I remember in 1997 when I went to get a home loan, I had 48% down-payment and a 6 year job, and my payment ratios were at 42% which was risky at that time. I had to go to 6 different sources to find the loan that I wanted and not what they wanted me to have! I thought I was going to have to commit the rights to my first born child.  So, instead we had Conventional and FHA Loans. Basically what people, sellers, and Realtors thought were Good Buyers and Scary Buyers. FHA stands for Federal Housing Authority and these loans are back and guaranteed by the government for those of you that are not aware. Recently there has even been mention that the FHA loan division might even fall apart. However the government has just recently taken measures to make sure that the program does not disappear. Back onto the Topic though. In the past people perceived FHA Buyers as bad or risky buyers. Realtors were very uncomfortable working with FHA Buyers whether they were selling them a home or helping the Sellers in the FHA process. There were several reasons that Sellers and Realtors were leery of FHA Buyers. To begin with the thought was that these Buyers were Risky and Bad people. Secondly, both the Home Inspector and Home Appraiser could only be FHA individuals. If there was anything in the Home Inspection that deemed something unsafe the Sellers had no choice but to fix it. Sellers thought this was entirely unfair. Imagine that! Fixing unsafe items to turn the Home over to the New Buyers. In Conventional loans the two parties could negotiate what to fix and not fix. Of course the Home Inspection is to determine unsafe conditions in a home,and  not a Buyers wish list like wanting the furnace cleaned or getting money out of the Sellers just because the Wife does not like the Sellers choice of the tile backsplash!  NOW, all that has changed!!!!!! The Home Inspector and the Home Appraiser's just have to be FHA approved, and only have a few minor guidelines that might be considered a little more strict remain,otherwise it is just like a regular home purchase. However, what most people are not aware is that if a Buyer goes FHA and has less than the 20% down needed to get a mortgage without PMI,. than the PMI they will be paying is less expensive. For Instance I had a girlfriend that was buying a home and she did not have the required 20% down. Both the rates on the conventional and FHA loans were the same, however because FHA is government backed and their PMI providors have to follow the government guidelines, my girlfriend was saving $97.00 a month on her PMI. That is quite a savings if you ask me! Can everyone buy a home FHA? Those that have not owned a home previously, and those that fit the guidelines of the loan. Do Sellers and Realtors still have a "bad feeling" about FHA Home Buyers, YES! But that  is because they do not understand the program. Would I put myself and my friends into a FHA mortgage loan if I could, every single time! Times are changing, people's opinions may not! Call me if I can better explain the differences in the 2 different types of loans. What do you have to lose except money!                          Karen-  

This past weekend was beautiful outside, so I took some time to help an adopted Niece celebrate her 3rd Birthday. If you ever need a smile, go to a 3 year olds birthday party. While I was visitng with some of the parents at the party I ended up talking to a Woman that works for an Apartment Rental Company. Well one topic led to another, and we started talking Real Estate. She was amazed that in this market, Renting an Apartment is at an all time high! She said they could not rent the apartments fast enough. She of course was happy for her company, but baffled by the amount of people renting instead of buying. It is not her job to talk someone out of renting from them, but in this market she wishes she could buy now, or at least invest in Real Estate. I too am amazed that people are stepping back from Buying and would rather rent. Not only for the tax reasons and savings from buying, but from the market. The illinois Realtor's Association just put out a New Brochure about the Benefits of Buying Now. This woman's was telling me some of the reasons people were choosing to rent instead of Buying. "I am waiting for the Market to hit bottom".  I do not think anyone can predict when the market will hit rock bottom, but what I do know is that you will be buying a home almost in some cases 20% less than your new neighbor did. Also, by the time most of us realize that we hit rock bottom we will be on the way up. Besides, the tax money you save in 1 year can be the difference in your savings. Another of her favorites is, " I am waiting for the rates to come back down!". I remember when I bought my home 10 years ago and I was so excited to get 7.95% which was the best interest rate we had in over 8 years prior to my purchase.  There are many reasons why now is the time to buy a home, or move up in homes it's just that you need to apply some thinking power to the reasons. One of my personal favorites is, "My Mom or Dad told me to wait until......", well I hope your Mom or Dad who are not Real Estate Professionals do not give you legal advice if they are not Attorneys. Do me a favor, introduce yourself to a Real Estate Agent you do not know, and ask them if this is a good market to buy. I bet you they turn and answer " Oh my gosh, YES!".  If they can not give you 10 reasons, then call me. With my Finance background I can name at least 10 great reasons off the top pf my head. Not because I want to sell you something, I just want to spread the word-

Karen 

WOW, what a wonderful Summer it has been so far! We have had some amazing days of Sun and Fun, and some very scary Storms too! Fortunately, we haven't had to water our lawns too much this Summer. I know my Summer has been extremely busy, hopefully yours has be filled with alot of Family and Fun. One thing I am extremely excited that we accomplished this Summer is our "Preparing your Home for the Market Checklist". You may ask, "Why a checklist?". It is extremely easy to forget to get the little things  completed before putting your home on the Market. This is a very handy guide to getting everything ready. As I may have mentioned before, that Homes are still selling in this market and Home sales were even up in June. However the homes that are selling are the ones that are immaculate and priced right! If you want to put your home on the market, I tell people it is going to take at least a month or more to make sure it is absolutely perfect for the market. You do not get a second chance with Buyer's these days to make a first impression. If you would like your free copy of "Getting your Home Market Ready" from the Mitch Home Team, please either e-mail me at Karen@MitchHomeTeam.com or call me directly at 630-674-2215 and we will be glad to send you out your free copy with no strings attached. Stay safe!

Often Sellers ask me what's all the buzz about Staging a Home for Sale. What exactly is Home Staging and does it really work? The answer as my 8 year old niece says, "OMG does it!". YES, staging a home DOES work, and I can testify to the fact. I have worked with many different types of Buyers from first time buyers to Million Dollar buyers, and they all react the same to a beautifully decorated and immaculate Home. They fall in love and want the home. So what is staging. Staging is decorating and displaying furniture to maximize the effects and layout of a home. But I like to take this one level further. It's a total preparedness for marketing a home besides just making a home look and smell good. Yes, you need to de-clutter. Yes, you may need to paint the walls a more neutral color and decorate a dinner table with placemats and such. But if you really want to sell your home fast and for the most money, then make the Buyers believe your home is worth the value just as you do. To begin, prior to calling your Real Estate Agent you need to walk through your home room by room and make a list of everything you need to do to get prepared. Not decorating and layout, but cleaning and fixing everything that needs to be done. You need to clean out closets, (donate, donate, donate) it's either now or during the move, so why not do it prior to add more value. You need to clean and organize closets, you need to make sure that the doors close properly, the closet shevling is tight, that the light bulbs are  replaced, and that everything in each room is scrubbed to the max. EXTRA CLEAN HOMES SELL FASTER! I once had a couple that decided on a home by whether or not there was any mold around the caulk in a bath tub. Clean everything! I mean even wipe down the furnace and Hot water heater, and clean out that food pantry. Curb appeal is the next task. Mow, trim, water, and clean off the driveway. Paint the front door, remember first impressions matter in more ways  than just meeting someone. After all of this is done, then focus on Staging your home. I know your home is on the market but you still feel more comfortable watching your TV from your lounge chair over here, but with that Chair over here it blocks the room flow and makes the room appear smaller.  Also, please remember  "Not everyone likes your taste, and you do not like everything else's taste", life would be boring then. If you like the taste of a quick sale at a better price then don't worry about what a stager says, they do not say something to upset you, they are talking from experience. Do you need to put money into getting your home ready for the market, yes! I say put aside if possible at least $500 that would be great. Fix everything that is broken, spend alittle on getting the carpets cleaned,  paint some walls in a updated color, change out some throw pillows from Target to match, and  plant new flowers and such. Watch HGTV and see how a little can go a long way! One last thought, I have had some Sellers tell me that they will do this along the way of marketing the home. DON'T, each person that walks through is a lost chance to sell, and a lost chance is wasted time and money.  Get your home absolutely ready,  and then put it on the market and relax. Makes sense doesn't it? Would you believe I have seen science projects in the works in most of the homes I have shown? Under-ware hanging? Doors falling off? Then the Realtors call me for feedback, now what am I suppose to say?

 Until Later-Karen                                                       

                 Remember you only get 1 chance to make the 1st and best impression!