Edwardsville and Glen Carbon Real Estate Chat: Kristina Pratt, REALTOR® - GoshenRealtyGroup.com (St. Louis' Illinois Suburbs - RE/MAX Preferred Partners)

If you've read anything about purchasing a home in Macomb County MI over the last few months then you've certainly come across many articles detailing the difficulty in getting the mortgage loans through the processing end of things. 


Some of the areas in which your buyers agent (you do have one don't you?) needs to provide their expertise and help to ease the stress are with the inspections that you will have, and the appraisal & appraisal review process:

Your home inspection:  As a buyers agent in Macomb County MI , I will provide to you a list of home inspectors that I would personally choose to inspect the homes of family members or my own home.  However the last 2 buyer clients that I have worked with have asked family members, co-workers and friends for recommendations and hired wonderful professionals for their inspections.  You may use anyone you wish as long as they are insured.   Both of these home inspectors did fabulous jobs for their clients and one of them had a recommendation for an environmental inspector that also did a great job. 

Your buyers agent should also pay close attention to the contract dates for the inspection time  period  and ask for an extension should you need any follow-up inspections or time to clarify something before you make your final decision on whether to proceed or not with the home purchase.

The appraisal and appraisal review process:   Before you sign the offer to purchase the home your buyers agent should provide you with the last 90 days of sales for similar homes within a one mile radius as well as within the same school district.  I cannot stress strongly enough the importance of this prior to writing your offer.   The home you chose may seem worth the asking price, but with the declining values in Macomb County as well as the high number of bank owned homes that have sold, that "asking price" may be tens of thousands of dollars higher than it should be.    If your buyers agent does their homework you should have made an offer on the home that was well within the recent (less than 90 days) snapshot of the real estate sales in your target area.

If you have made a fair offer to purchase the home that was based upon an accurate view of the recent
market and similar homes that have sold then you should have no problems when it comes to the appraisal.
Of course we can never be certain how an appraiser will view the home and how much value he or she will place on it, but we can certainly try to analyze the market and get a good feel for what the market value is for that particular home prior to you placing an offer on it.

You don't have a buyers agent to help you and represent your interests?    Get one.  You absolutely need your own advocate throughout this process. 


~Kris Wales~  A partner for your real estate needs in Macomb County MI

 

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One of the best real estate sales weapons in our arsenal at Just Ducky Homes is the common suburban Storage Unit.

It's amazing how much clutter can accumulate in a home over the years. Before you know it, you and your family are outnumbered by the toys, clothes, furniture and other household items that are just part of life.

We have a solution that has worked wonders for our sellers: Just temporarily rent a storage unit until your home sells. To this day, our customer, and now friend, Meaghan says it was the best decision ever.

This tactic gives you the opportunity to clear some wide open spaces and show buyers how great your home's floorplan is. 

And it takes a lot of pressure off you as a seller.

By using a storage unit, you can go through your possessions more slowly and carefully when it is time to move them into your new home. You won't accidentally throw away a family heirloom that you're trying to get out of the way and you can make the important Three D decisions -- Do Move it, Dump it or Donate it -- much more easily from the unit instead of from your house.

Make sure you're renting in a facility that offers you 24-hour access and that has good security procedures so your possessions remain safe.

One of the best units in our Edwardsville, Illinois area offers units starting at 5 x 5 and continuing all the way up to 10 x 30.  The deposit is just $25 and the unit costs are pro-rated based on which day of the month you move in. Prices begin at $31/month for the smallest units and run to $111/month for the largest.

Outside parking spaces also are offered at many rental facilities. Think about using them if you have a few too many cars or perhaps a boat or RV that isn't exactly enhancing the view of your home during the sales process.

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About the Author: Nancy Milton, GRI, is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Kristina Pratt help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on real estate in the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Nancy@JustDuckyHomes.com.

The rush is on.  The deadline for purchasing a home using the $8000 tax credit is November 30, 2009.   You might be surprised to find out how quickly the remaining days left to take advantage of the "free" money from the government will click away.

Let's take a look at how you might use up your time remaining.

Before you even head out the door to look at houses you need to have made contact with a lender and start the pre-approval process.  The further you get along in this process before you get in a car to look at a home the better.  For timing we will say that this process will take you a week because you are super organized and have all of the documents on hand that your lender needs.  (7 Days Gone)

Now you are ready to actually head out and look.  With lower inventory (below $250,000) than a year ago, it would be realistic to think that it will take you 30 days to find a house.   Then there is the contract ratification process.  If you are lucky and you have focused on seller owned properties you may be able to get a ratified within 7 days.  (37 Days Gone)

With the new appraisal rules (HVCC) and the new lender rules (HERA) going into effect you can expect that getting your final loan approval will be 30-45 days.  For our calendar we will take the longest number just to be safe. (45 days Gone).

How are we doing so far?  Looks like we have knocked 89 days off the calendar leaving 49 days left until the deadline.  Whew looks like you have plenty of time to get this done.

Wait we forgot to add in the days that FHA is going to require for a second appraisal (it is happening more and more) or the processing time at the settlement company.  So let's pad those 89 days with an extra 7 to be on the safe side.  Now we have taken a total 96 days off the calendar.  Leaving you 42 days to move in and enjoy your new home. 

If you take longer to find a home, if the lender takes longer to approve your loan or you think you want to buy a short sale....then you may have waited to long!

Are you still thinking about whether the market might decline a bit more making your dream home just a bit more affordable?  Or are you waiting for the interest rates to come down to 4.5% again?   If you are then every day you wait is one less day that you have to deal with any issues in your schedule.  If you are serious about buying a new home this year and are eligible for the $8000 tax credit then time is of the essence.  Don't sit on the fence much longer or you may find yourself looking at the calendar on December 1st and wondering what you were waiting for.

We knew it all along, of course, but it's nice to hear someone else say it:  Glen Carbon, Illinois has been named among Money Magazine's Top 100 Places to Live. 

The publication's researchers fanned out across the country this year to find America's top small towns. They looked at housing, school districts, employment figures, crime and a variety of other indicators to come out with the Top 100 list.

Glen Carbon began life as a 19th-century coal mining village here in southwestern Illinois. Today the vibrant community is close to Southern Illinois University at Edwardsvillle and is a commuter's dream with easy access to I-270, I-55, I-70 and I-255. As one of St. Louis' Illinois suburbs, Glen Carbon also serves as a place to live for employees who work throughout the Missouri and Illinois bi-state area.

Housing choices range from ready-to-rehab investment properties and Old Town starter homes to elegant estates, horse farmettes and leafy subdivisions such as Ginger Creek, Timberwolf, Somerset, Field's Crossing and many others.

Shopping and dining options have expanded tremendously in Glen Carbon and its sister community, Edwardsville, in recent years. Now it's just a quick drive down the street to reach Borders, Old Navy, Kohls, Wal-Mart, several supermarkets and a variety of local and chain restaurants.

If you would like to include Glen Carbon in your home search, visit us online at Just Ducky Homes to learn more about the village's neighborhoods, the Edwardsville School District, the history of Glen Carbon and the homes available in the area.  We've love Money magazine's top place to live to become your top place to live too.

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About the Author: Nancy Milton, GRI, is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Kristina Pratt help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on real estate in the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Nancy@JustDuckyHomes.com.

Thirty-three home sales closed in June 2009 in Edwardsville, Illinois. Thirty of those properties sold were existing homes and just three were new construction. Sales showed a surprising dip from a high of 39 sold in May.

The existing homes that sold during the month ranged in price from a low of $67,000 to a high of $325,000. The average existing home sold for $178,187 and had been on the market an average of 119 days.

New construction homes ranged in price from $265,000 to $510,000 and had been on the market an average of 322 days prior to closing.

As of today, 238 residential properties (both existing and new) are for sale in Edwardsville, a 7.2-month supply of inventory at the June sales pace.

First time home buyers: Are you still at the computer, doing endless "research" on how to snag the $8000 TAX CREDIT for buying a house this year? 

Does the November 30th deadline seem like a million years away as you think about fireworks (not turkey leftovers)?

First time home buyers: Get your butts in gear. NOW.

This is the wrong time to claim you only get motivated when a deadline looms.

This is the wrong time to tell everyone you are a "last minute kinda person" who pulls an all nighter when you have a term paper, and shops for Christmas presents on December 24th.

Here's why: Buying a house takes longer than you think. There are 8000 reasons you DO NOT want to miss this deadline.

Let's back things up. Do you think OTHER first time home buyers might wait until the last minute? Lenders could very likely experience an overwhelming amount of applications this fall.

With applications already taking 45 days, it could easily take 60 days to close your loan. Or more. Lenders are already ridicuously understaffed.

This means you will need to be in contract no later than the end of September.

If you have not already done so, you will need to accomplish this during the months of July, August and September:

1. Find a Mortgage person
   
2. Find a Real Estate Agent
   
3. Find a House
4. Make an Offer, negotiate terms. Find another house if first offer is rejected. Get new offer accepted.
   
5. Get financing completed and loan closed.

 

Some likely time lines and what to expect:

1.  Apply for a mortgage.  Provide the required documents and ask for a pre-approval. This will uncover any glitches standing in the way of your approval. This will make certain you have the right amount of funds in your account, or lined up as a gift. This will let you know your price range before you begin shopping for a house. This will let the Realtor know you have done your homework and are serious. ESTIMATED TIME REQUIRED: 1-2 weeks

2.  Figure out where you want to live and find a Realtor.  Look for a Realtor that knows the neighborhood where you would like to buy. Communicate openly and be on the same page if you are buying with another person.  ESTIMATED  TIME REQUIRED: 2-3 weeks

3.  Shop for a house with your Realtor.  ESTIMATED TIME LINE: 3-4 weeks.

4.  Make an offer, negotiate terms, get in contract. Ask your Realtor about timing before making an offer on a short sale or a lender owned property.  ESTIMATED TIME LINE: 1-2 weeks or more...depending on how many offers it will take to get a house. Market could become highly competitive as the deadline looms.

5.  Secure financing with lender, and close the loan. Inspections and appraisal will occur during the time as well. ESTIMATED TIME LINE: 6 weeks to 8 weeks

Worst case estimated time line: 19 weeks.

Weeks until November 30th? 22 weeks, beginning next week.

Can you do this in less time? Yes you can.

Just like when you gave your Mom that lame ceramic unicorn for Christmas (purchased in a panic on Christmas Eve, thrown in an obviously used gift bag, then sneakily placed under the Christmas tree minutes before gift opening).

 

 

 

 

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

It's the question I'm asked most often:  Nancy, How's the market doing?

So, let's take a look at figures for May 2009 in the top southwestern Illinois markets we work. This post covers Edwardsville, Illinois -- the 62025 zip code.

In May 2009, 40 new and existing homes were sold in Edwardsville. They ranged from a low of $59,900 to a high of $651,000 with the average selling price at $186,415. 

The list-to-sell price ratio for all homes in Edwardsville was 97 percent, higher than the overall market where the ratio is at 94 percent.

Homes stayed on the market an average of 139 days. Separating the new construction from existing home sales, new homes remained on the market an average of 420 days, existing homes 108 days.

One year ago, in May 2008, 48 homes sold during the month in Edwardsville which gives us a 17 percent decline in sales year over year.

There are currently 226 new and existing homes for sale in Edwardsville, 19 months of inventory at the current average monthly sales pace. (This absorbtion rate will drop as closings during the peak sales months of June, July and August figure into the equation.)

This tells us that sellers must be patient and must have their properties in tip top condition to rise to the top of their competitive set. The research also reminds us that buyers still have a lot of choice.

 

 

 

This is an actual check from one of my First Time Buyers who bought a home last month, and immediately filed his 2008 tax return - which he had already filed an extension for - and this week received the above check !

 

... before his home purchase, his return was going to give him a refund of approximately $4,000 !!!! ... as you can see, he qualified for the tax credit, and received $8,000 additional dollars from the government for buying his home.

 

@@@ FOR FURTHER INFORMATION - BE SURE TO CONSULT YOUR ACCOUNTANT TO SEE IF YOU CAN RECEIVE THIS YOURSELF @@@

 

Per the IRS.gov website, you may qualify to receive this credit if you meet the following qualifications:

"... qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase."

 The credit itself:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer's principal residence.
• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

 

So if you were considering buying a home this year - be sure to talk to your accountant as you may also qualify to get $8,000 extra dollars for buying your first home !

 

ALSO: Be sure to check out a post  from respected Loan Officer Jeff Belonger explaining how you may be able to receive an 'up front loan' for this credit to use towards closing costs or additional downpayment over your mandatory 3.5% payment on your FHA loan !

@@@PLEASE NOTE: ALL INFORMATION ABOVE DEEMED RELIABLE PER THE IRS.GOV WEBSITE, HOWEVER IS SUBJECT TO CHANGE AT ANY POINT ON ANY DAY ! - CONSULT YOUR TAX ACCOUNTANT BEFORE EXPECTING ANY PORTION OF THIS CREDIT.

@@@@ UPDATED: BELOW IS THE FORM NEEDED TO FILE FOR THIS CREDIT IF YOU QUALIFY - YOUR ACCOUNTANT SHOULD HAVE IT AND WALK YOU THOUGH IT ! GOOD LUCK !

Dear Buyer: 

It's time for a little straight talk about real estate.

If you seriously want to buy your first home this year to take advantage of the $8,000 first-time homebuyer tax credit, low interest rates and the great selection of available homes, then this blog post is for you.

I've met a few of you in the last couple of weeks who are going about this process the wrong way. You're wasting your time and you could be wasting money. You're scanning the Internet, driving past a sign or looking at ads. When you find a property that catches your eye, you might call and ask questions about it. Or you might just wander into an open house at the property.

But then what?

Do you talk to the home's listing agent knowing that he is working for the seller? Do you panic and start looking for someone to help you at the last minute, losing the window of opportunity to make an offer on the house when it goes to another buyer?

All is not lost. By just reversing the process, you can be in your new home in no time. You need to shop for a good real estate buyer's agent before you ever think of shopping for your new home. 

A GOOD BUYER'S AGENT WILL...

...look out for your interests during the transaction. After all, the seller has an agent. Shouldn't you? 

...meet with you before you ever set foot in a house that is listed for sale. Your conversation should be all about your needs and your wants in a new home and about creating a plan that will get you into home ownership with the least amount of hassle.

...ask a lot of questions and will listen -- really listen -- to what you have to say.

...never be too busy to answer questions.

...find homes that meet your needs and will make appointments for you to see the properties privately with no interruptions so you can carefully consider their merits.

...help you eliminate the homes that don't fit your criteria and focus on those that do.

...never try to "sell" you a house. But she will help you buy the house that you ultimately choose by managing the buying process and negotiating the best possible deal for you in the current market.

...communicate in a way that is best for you. Are you an e-mailer? Do you live on Facebook? How about Twitter tweets or texting. Test an agent by sending a message to see how quickly she or he responds. If it takes too long to hear back from them, move on to someone else. 

...offer solid research to help you make a decision. She'll know what other homes in your target property's neighborhood have sold for in recent weeks and months. She'll be aware of external factors in the area -- both good and bad -- that might influence your decision. She'll know the target home's listing history and will go over the seller's disclosures with you.

...stay in close touch with your lender to make sure your pre-approval turns into a solid loan commitment that will allow your deal to close on time.

Choosing your agent before you choose your home will make the buying process less challenging and much more enjoyable and successful. Happy agent shopping!

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About the Author: Nancy Milton, GRI, is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Kristina Pratt help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on real estate in the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Nancy@JustDuckyHomes.com.