KJ Premier's Chicagoland Real Estate Blog

10 reasons you should buy a home now

kkarls — Thu, 21 Oct 2010 17:52:01 +0000

So to follow up the article on why you should sell now, here are 10 great reasons to stop thinking about buying and actually getting out there and doing it. Think you missed the boat as a first time buyer when the tax credit expired? Think again! So many great reasons here to call a lender and then get on out there and start looking!

Please see the article below from MSN Money, and call us today to see if the timing is right for you to get into the market.

10 Reasons to buy a home now

By Brett Arends, The Wall Street Journal

1.You can get a good deal

You can get a house at a bargain price now — especially if you play hardball. This is a buyer’s market. Most of the other buyers have vanished since the tax credits on purchases expired.

We’re four to five years into the biggest housing bust in modern U.S. history. And prices have come down a long way — about 30% from their peak, according to the S&P/Case-Shiller Indices, which track home prices in cities across the country. Yes, it’s mixed. New York’s prices are down only 20%. Arizona’s have been halved.

Will prices fall further? Sure, they could. You probably won’t catch the bottom, but it doesn’t really matter so much in the long haul.

2.Mortgages are cheap

You can get a 30-year home loan for about 4.3%. What’s not to like? These are the lowest rates on record. As recently as two years ago, they were about 6.3%. That drop slashes your monthly repayment by a fifth.

If inflation picks up, you won’t see these mortgage rates again. And if we get deflation and rates fall further, you can refinance.

3.You’ll save on taxes

You can deduct mortgage interest from your income taxes. You can deduct your real-estate taxes. And you’ll get a tax break on capital gains — if any — when you sell.

Sure, you’ll need to do your math. You’ll get the income tax break only if you itemize your deductions, and you may be better off taking the standard deduction instead. The tax breaks are more valuable the more you earn and the bigger your mortgage. But many people will find that these breaks mean owning costs them less, often a lot less, than renting.

4.It’ll be yours

When you own, you can have the kitchen and bathrooms you want. You can move the walls, build an extension — zoning permitted — or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible.

Also, you’ll feel better about your home if you own it. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Prime Minister Margaret Thatcher had just begun selling off public housing to the tenants.

“You can tell the ones that have been bought,” said my local guide. “They’ve painted the front door. It’s the first thing people do when they buy.”

It was a small sign that said something big.

5.You’ll get a better home

In many parts of the country, it can be hard to find a good rental. All the best places are sold as condos. Money talks.

But this is a case-by-case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. Generally speaking, however, if you want a good home in the best neighborhood, you’re better off buying.

6.It offers some inflation protection

Although housing can’t entirely protect you from inflation, studies by professor Karl “Chip” Case, of Case-Shiller, and others suggest that over the long term, housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young, raising a family and thinking about the next 30 or 40 years.

In the recent past, inflation-protected government bonds or Treasury inflation-protected securities offered easier forms of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7.It’s risk capital

Your home isn’t the stock market, and you shouldn’t view it as a way to get rich. But if the economy does surprise us all and start booming, sooner or later real-estate prices will head up again, too.

One lesson from the past few years is that stocks are incredibly hard for most normal people to own in large quantities — for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy — if it happens — and still managing to sleep at night.

8.It’s forced savings

If you can rent an apartment for $2,000 a month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? Most people won’t.

Once again, you have to do the math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

9.There’s a lot to choose from

There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That’s below last year’s peak but well above typical levels and enough for about a year’s worth of sales.

More homes keep coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice as well as great prices.

10.Sooner or later, the market will clear

Demand and supply will meet. The U.S. population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes.

Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed — deliberately or by inaction. This is already happening. Even two years ago, when I toured western Florida, I saw bankrupt condo developments that were fast becoming derelict.

And, finally, a lot of the glut simply won’t matter to you. It’s concentrated in a few areas, such as Florida and Nevada. Unless you live there, the glut won’t have any long-term impact on housing supply in your town.

Call us today!
Wendy Johnson 630-514.6615

Kelly Karls 312-656.7521 or 859-552.8101

or Kjpremier@atproperties.com.

Filed under: Uncategorized Tagged: $8000 tax credit for first time buyers, buying and selling real estate, buying real estate, Chicago Real Estate, first-time home buyers, foreclosures, help with buying real estate, Mortgage Rates, short sales, why buy now

Top 5 reasons you should list your house Now!

kkarls — Tue, 19 Oct 2010 18:05:45 +0000

Thinking of moving, but heard it’s not a sellers’ market? Well, that may be the case, but if want to move in the near future, and your contemplating selling now, or waiting til Spring, or the first of the year, here are a few reasons to think again.

As always, each situation is different, and you should give us a call if you are considering buying or selling so that we can help you make the best, informed decision.

See this great article below by Steve Harney:

Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

§ January – 3,277,000

§ February – 3,531,000

§ March – 3,626,000

§ April – 4,029,000

You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!

Filed under: Uncategorized Tagged: buying and selling real estate, Chicago Real Estate, Lexington KY real Estate, Mortgage Rates, selling real estate, short sales, why buy now

203k program~Rehab Loans

kkarls — Sun, 07 Mar 2010 17:59:58 +0000

Looking to Buy a ‘Fixer-Upper’? The 203k Program Can Help Make It Happen Today’s real estate market presents a lot of opportunity for interested home buyers—with the growing supply of foreclosure properties and short sales, there are certainly some great deals to be had. The problem in buying a “distressed” property, however, is that these homes are often damaged due to lack of maintenance or prolonged vacancy. So while the price tag might be right, the investment necessary to make the home livable might just push buyers well beyond their budgets. I have access to the latest information on mortgage and financing options. One particular option that is providing hope for many of today’s home buyers is HUD’s FHA 203k program, a loan that enables buyers to not only secure a mortgage, but receive the funds necessary to improve the home as well. Here are five facts about the 203k program to help you determine if it might be the right fit for you:

1. The FHA Section 203k program was originally introduced by HUD in 1978 as a program to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements. A simpler version, the Streamline 203k, was introduced in 2005. This version offers less documentation and lower loan fees for renovations that don’t exceed $35,000.

2. In today’s market, conventional financing, which often requires 20% – 25% down on a home and a perfect credit score, is often hard to come by. However, with less-than-perfect credit and as little as 3.5% down, you can get an FHA loan, such as the 203k.

3. The 203k approval process is a little more complicated than a conventional loan. For example, you’re required to secure renovation costs from an established, licensed contractor and deliver a package of the proper paperwork to the lender to secure FHA approval. Make sure you work with an agent—like a member of Top 5—who is well-versed in the 203k program, or who can connect you with a lender that is.

4. The 203k loan is not just for foreclosure or distressed properties. More than 80% of the homes in America were built before 1990—that’s over 100 million homes that are 20 years old or older—and almost every one is in need of some amount of repair and updating. The 203k loan, therefore, offers advantages for almost any home purchase.

5. The 203k loan is not just for home purchases but can be used to finance a home improvement, as well! For complete details on the HUD 203k program, you can visit www.fhainfo.com/fha203k.htm. Please feel free to e-mail us, too, since this information can be hard to digest and confusing. Be sure to pass this e-mail on to any friends and family who might also be able to take advantage of a 203k loan.

Looking to buy a foreclosure or short sale? Don’t do it alone. Buying in this market can be daunting. Let us help.

kjpremier@atproperties.com

Filed under: City Real Estate, Mortgage Rates and Information, Real Estate in a Nutshell, Uncategorized, West Suburban Real Estate Tagged: chicagoland real estate, FHA, foreclosures, Lexington KY real Estate, real estate, refinance, short sales

First Time Home Buyer Tax Credit Extended!

kkarls — Sat, 07 Nov 2009 03:08:48 +0000

First Time Homebuyer Tax Credit Extended Into 2010!
Plus…A New Tax Credit for Certain Existing Home Owners!

It’s official. President Obama has signed a bill that extends the tax credit for first-time homebuyers (FTHBs) into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

So, get on out there today and start shopping. There is some great inventory, and many great deals waiting to be purchased.

Posted in Uncategorized Tagged: $8000 tax credit for first time buyers, Chicago Real Estate, deadline for purchasing, first time buyer credit, home buyer tax credit, positive real estate news, real estate, real estate chicago, real estate news, stimulus package, tax credit, who should be buying real estate, why buy now

Pottery Barn Beauty in W. Lakeview!

kkarls — Tue, 15 Sep 2009 01:46:14 +0000

Located just off the Southport corridor, this gorgeous 2 bed/2 bath is centrally located to so many of Chicago’s great features! Nestled between Lakeview and Roscoe Village, at 3432 N. Ashland, it is just a few quick steps off the CTA

Coobah's outdoor dining

Brown line or a hop on the Ashland bus. Or, if you prefer to drive, it does have a garage spot included in the price, and a second one available through the end of the year!

This fabulous unit, built in 2002 by DeStefano Partners, has fabulous space, and lovely designer details throughout. With carmel 42 in. cabinets, top of the line stainless steel appliances, wonderful lighting, and a spaceous granite island for entertaining, this kitchen is sure to delight! The open living room, dining room, and kitchen lends wonderful space, (more so than the average 2 bed/2 bath!) and is ideal for entertaining. The luxurious spa-like baths, and generous room size complete the package in the must see walk up condo in one of the City’s most happening spots!

You can buzz next door for a workout at XSport Fitness which is open 24 hours, or grab dinner on your way home at Whole Foods. Or if you prefer a more trendy day out and about, hop on over to one of my personal favorites, M Boutique for some accessory shopping, have lunch at the Southport Grocery (but make sure to have a cupcake!), followed by happy hour at Schoolyard, and a little Latin Flare for dinner at Coobah!

Please see our listing video here for more shots of this gorgeous condo:

http://tours5.vht.com/Viewer/VHTTour.aspx?ListingID=1206508&Style=IDX

Call or email us today with questions or to view this beautiful property. Kjpremier@atproperties.com

Posted in City Real Estate, Real Estate in a Nutshell Tagged: $8000 tax credit for first time buyers, 2 bed 2 bath condos in chicago, Chicago Real Estate, chicagoland real estate, Lakeview condos, listings near wrigley field, Mortgage Rates, New listings, residential real estate chicago, Roscoe village condos, Southport corridor, trendy Chicago condos

6 reasons your house won’t sell~Just take it from the Trib!

kkarls — Tue, 04 Aug 2009 15:31:02 +0000

These are reasons we tell clients everyday are the reasons that places don’t sell, but don’t take our word for it. See it in the Chicago Tribune article below..

However, the biggest reason, being it’s not priced well. The well priced properties are selling, so don’t be a discouraged seller. Call us today to get the most appropriate pricing for your property.

kjpremier@atproperties.com

6 reasons your house won’t sell

By Ilyce Glink | Tribune Media Services

August 2, 2009

The spring selling season has quickly faded. Homeowners who want to sell now pin their hopes on the third quarter of 2009.

With a strong buyers’ market in place, many sellers are bound to be disappointed as buyers skip over their homes for others nearby.

Here’s my list of six reasons why your home won’t sell:

1. It looks drab in photos. Since the vast majority of home buyers start their search for a home on the Web, your house had better look fabulous in print. If it doesn’t track well online, no one will take the time to see it in person.

2. It’s overpriced for the neighborhood. If your neighborhood is filled with foreclosures and short sales, you’ll be hard-pressed to get top dollar, even if your home looks better than all the rest. However, if you have just a few foreclosures, you may be able to overcome any objections by pricing your home correctly.

In this case, correct pricing means figuring out at what price point buyers are looking in your neighborhood. If everyone is looking at homes priced at $250,000 or less, that’s the price point you want to be at.

If you can’t afford to sell at that price level, then you should consider removing your property from the market.

3. There’s no “wow” factor inside. Once you get buyers inside the house, you need them to be wowed by what they see. Hiring a professional stager can work wonders, turning a blah interior into one that looks sleek and polished, like the homes featured on HGTV.

If you don’t want or can’t afford to spend the money on a professional stager, consider watching a few staging videos online.

4. No one knows it’s there. Your agent isn’t getting the word out, either because the property isn’t listed properly on the multiple listing service, or because he or she hasn’t posted it on Craigslist, Zillow or other online search engines that don’t feed directly from the MLS posting.

Online marketing should include a Web site that has the address as the URL (you can sell it to the buyer as part of the deal) and as many photos, floor plans and video as possible.

5. Your commission isn’t high enough or the agent isn’t splitting the commission equally. Agents will tell you that they won’t push a buyer to make an offer on a house simply because it has a higher commission. But many agents see no harm in making sure their buyers see as many properties that are in the right price range.

Some agents take 60 percent. But you need to make sure your agent is splitting the commission equally.

6. Your house won’t pass inspection. If your house looks great, but the faucets leak, the windows don’t lock, the ceilings have water stains and the furnace is on its last legs, buyers may move on to the next house.

Posted in City Real Estate, Real Estate in a Nutshell, West Suburban Real Estate Tagged: Chicago Real Estate, getting your home sold, help with selling, real estate, sell your home, selling real estate, tips on making your home show better, why won't my house sell

Good News for FHA Condo Buyers!

kkarls — Wed, 29 Jul 2009 14:10:48 +0000

New FHA Condo Approval Process Will Mean More Options For Chicago Condo Buyers 1st July 2009 With an upcoming change, FHA will be able to finance a lot more condominiums here in the Chicago area and throughout the nation. A recent FHA mortgagee letter detailed the new process that will streamline condo project approval and will open up a lot of properties which up until now have not been eligible for FHA financing.

Over the last 2 years condo financing has become increasingly harder with tightening guidelines, restrictive mortgage insurance policies and loan level price adjustments which made condo financing much more expensive for anyone without a big down payment. Over the last 10 years almost all the condos in Chicago were financed with conventional loans and as more and more condo units came on the market through new construction or conversions from rental units, few of these properties applied for FHA project approval. The bright spot for many lower down payment condo buyers was the FHA spot loan. The FHA spot loan approval process allowed home buyers a way to buy units in condo buildings that weren’t FHA approved with the better terms that FHA offered (including competitive rates and a low 3.5% down payment), as long as the building met certain guidelines. This has been a great program, and it has helped a lot of new buyers, but there were a lot of otherwise well managed properties which have been excluded from this program.

With the new changes, set to take place on October 1st, some of the problems in the program will be fixed and more condo units will now be available for FHA financing. The FHA spot approval was a great program, but there were some glitches: Any property which had a “right of first refusal” in its Decs and By-laws was automatically rejected. Because of rules regulating how many units in a project could be FHA funded, the condo project had to have at least 5 units. This meant that all the smaller condo units, including a lot of 2 and 3 unit buildings which were converted over to condos during the housing boom, were not eligible for spot loans. The project had to be 90% sold out, meaning only well established properties were eligible, and more recent conversions or new construction condo would not be able to be approved. The spot loan was for a single unit only. If someone else bought in the same building after a spot loan had been approved, they had to go through the same process again. The new FHA condo approval process changes each of these, meaning more properties will fit the terms and be able to qualify for FHA financing. As of October 1st FHA will do away with the spot approval process and begin the new process. Under the new terms, properties won’t be restricted if they have the first right of refusal in their condo docs as long as they don’t discriminate, buildings with 2 units and up will be eligible, newer properties will work once they are 51% sold. The approval is not for the individual unit but the project itself, so once approved other units will then be eligible for FHA financing up to maximum concentrations (1 FHA financed unit in buildings of 3 units or less, and up to 30% FHA financed in larger buildings). One big change in the guidelines is that going forward the approvals will be handled by only FHA direct endorsement lenders (my company is FHA direct endorsed) with “staff knowledge and expertise in reviewing and approving condominium projects”. This means that the lender will be responsible for collecting all the documentation needed and putting together the full project approval. This means more paperwork and responsibility for the lender (though this is similar to what is needed for many conventional approvals now), but once the approval is complete the project will be added to the FHA approval list and then any FHA lender or broker will be able to do loans in the building. The company I work for is gearing up for this program by hiring a condo specialist who will work with our underwriters and processors to get these approvals out as quickly and smoothly as possible. I think this will be a big help to the market and will give buyers a lot more selection to choose from. Here are some of the particulars of the new process taken directly from the mortgagee letter:

The new rules go into effect on October 1st 2009:

Projects consist of two units or more.

Projects must be covered by hazard and liability insurance and, when applicable, flood insurance.

Right of first refusal is permitted unless it violates discriminatory conduct under the Fair Housing Act regulation in 24 CFR 100.

No more than 25 percent of the property’s total floor area in a project can be used for commercial purposes.

The commercial portion of the project must be of a nature that is homogenous with residential use, which is free of adverse conditions to the occupants of the individual condominium units.

No more than 10 percent of the units may be owned by one investor. This will apply to developers/builders that subsequently rent vacant and unsold units.

For two and three unit condominium projects, no single entity may own more than one unit within the project; all units, common elements, and facilities within the project must be 100 percent complete; and only one unit can be conveyed to non-owner occupants.

No more than 15 percent of the total units can be in arrears (more than 30 days past due) of their condominium association fee payment.

At least 50 percent of the total units must be sold prior to endorsement of any mortgage on a unit. Valid presales include an executed sales agreement and evidence that a lender is willing to make the loan.

[1] At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.

[2] For proposed, under construction or projects still in their initial marketing phase, FHA will allow a minimum owner occupancy amount equal to 50 percent of the number of presold units (the minimum presales requirement of 50 percent still applies). Legal Phasing is permitted for condominium processing. It is recommended that developers submit all known phases for initial project approval. For purposes of calculating the owner-occupancy percentage: a. On multi-phased projects the owner-occupancy percentage is calculated on the first declared phase and cumulatively on subsequent phases if the ownership of the condominium project b. remains the same; c. If multi-phasing includes separate ownership per phase, each phase is calculated individually; or d. Single-phase condominium project approval requests must meet the owner-occupancy percentage requirement.

· FHA Concentration a. Projects consisting of three or less units will have no more than one unit encumbered with FHA insurance. b. Projects consisting of four or more units will have no more than 30 percent of the total units encumbered with FHA insurance.

· Reserve Study – a current reserve study must be performed to assure that adequate funds are available for the funding of capital expenditures and maintenance. A current reserve study must be no more than 12 months old – if recent events or market conditions have affected the finished condition of the property that information must be included. When reviewing the reserve study, consideration must be given to items that have been replaced after the time that the reserve study was completed.

Information courtesy of:
Peter Thompson

Illinois Mortgage Broker

For more information about this our how to get started finding your dream home, contact us today at kjpremier@atproperties.com.

Posted in City Real Estate, Mortgage Rates and Information, Real Estate in a Nutshell, Uncategorized, West Suburban Real Estate Tagged: buying real estate, Chicago Real Estate, down payment assistance, fha financing, FHA loans, first time buyers, good mortgage news

Life Lessons Always Come When You Never Suspect Them!

wendyjohnson430 — Fri, 17 Jul 2009 10:13:04 +0000

Today I am not blogging about Real Estate or a great recipe, I am blogging about the life lesson that I experienced this morning….

I am in a mentoring group through @properties that meets weekly with the intention of helping you expand your own personal real estate business through a collaborative group of peers. Ironically, I was asked to give a short lesson on how to blog to the group today as our fearless leader was going to be out of town. I arrived 10 min. early with my laptop in one hand and a small plat of baked goodies to share with everyone in the other hand. I figured that at least if my presentation was just ok everyone could enjoy something good to eat! I set up , I waited , I waited, and I waited some more, and no one showed up. It was me and the plate of blueberry coffee cake in the conference room. At first I will be honest I was pissed as it takes me an hour to get to work in the city. But, than I took a deep breath, ate a piece of really good blueberry coffee cake, and I thought this is such a good life lesson for myself. I realized how it does not matter what you do in life or who you are, you must be accountable to yourself and the people around you. I’m not mad at the fact that no one showed up and will not for one second act holier than thou and lead you to believe as if I have never wasted someones time in the past, or not fully fulfilled my obligations to a group, or just was not considerate of others. All I can say is from this experience I will be more accountable and considerate to myself and to others from now on. I too know that this is not new information. Its is just we all know what to do and how to do it, we just don’t always do it!

If I was asked what this difficult economic time has taught me I would say it has made me a more conscious and grateful person. We all need to look into ourselves and when things go wrong find something to change about ourselves. Don’t always look to others to change. I am a better mother, wife, real estate agent and all around person because of what I have experienced in these past two years.

During my short lesson today about blogging I was going tell my fellow group members to play to their strengths and try to reveal something about yourself to your readers. These are two tips that have helped me become a more consistent blogger with a purpose. This is why I love blogging…it is interactive and I can be me.

A teacher, teaches lessons first and then takes the exam. Life takes the exam first, and then teaches a lesson. Keep Learning!

-Anonymous

Posted in Fun Info, Uncategorized Tagged: life lessons, quality of life, respecting others

Do you have a C.L.U.E!

wendyjohnson430 — Wed, 15 Jul 2009 05:16:42 +0000

Lead- paint, mold, and asbestos raise red flags to agents and their buyers but, do you know what a CLUE Report is?

CLUE — an acronym for Comprehensive Loss Underwriting Exchange — is a national insurance industry database with more than 40 million personal property claims. A CLUE report is the equivalent of a credit report for a house, which examines all claims reported to the insurance company for a given property over a five-year period, including water damage, fires, and mold. Reports show the date of loss, type of loss, and amounts paid out.

You can order a report online through ChoiceTrust,a unit of Alpharetta, Ga.-based data provider ChoicePoint Asset Co. Under the Fair and Accurate Credit Transactions Act of 2003, property owners can order one free report every year.

The Clue report can be used to warn buyers of a home’s potential pit falls but, it can also be a wonderful selling point if the CLUE report is clean. Let KJ Premier help you get a CLUE when it comes to buying or selling your home. Contact us at kjpremier@atproperties.com

Posted in City Real Estate, Real Estate in a Nutshell, Uncategorized, West Suburban Real Estate Tagged: CLUE Report, disclosures, steps to buying a home

Make your yard an oasis

kkarls — Mon, 06 Jul 2009 18:23:47 +0000

Economic uncertainty has many families skipping expensive vacations and opting for so-called “staycations” in their own backyards. They’re cooking, camping and enjoying outdoor activities right at home, making their lawns the perfect spot for an oasis of fun and relaxation.

Because people are spending more time around their homes, there is a renewed emphasis on the health, maintenance and vitality of grass, trees, flowers, shrubs and other plants and natural areas in the yard. Rising sales at garden centers for items like shrubbery, decorative accessories, fertilizers and pesticides show that consumers are creating inviting, usable lawn and landscape environments.

The benefits of healthy lawns and landscapes are numerous. Trees, shrubbery and plants can create a private and tranquil personal retreat. Well-maintained green spaces have been proven to lower blood pressure, reduce muscle tension related to stress, and reduce feelings of fear, anger and aggression. Lush lawns act as a soft cushion for play areas, remove dust, dirt and allergens from the air, and can significantly decrease carbon dioxide levels. Lawns also act as a filter to help improve water quality by reducing erosion and absorbing runoff so it doesn’t find its way into the gutter and eventually into public drinking water and other sources.

‘When healthy and functioning at their best, lawns and natural areas provide a limitless array of benefits for individuals, communities and the environment,’ says Allen James, president of RISE (Responsible Industry for a Sound Environment) — a national organization representing the manufacturers, formulators and distributors of pesticide and fertilizer products. ‘To reach their full potential and keep them free from harmful pests, many lawns and landscapes require the judicious and responsible use of fertilizer and pesticide products. Especially as people are spending more time in their yards, using these products as directed to grow healthy plants and protect against potential pest threats is increasingly important.’

While this is the time of year when people can enjoy their lawns and other outdoor settings with pets, family and friends, it is also important to remember that encounters with certain common pests are more frequent during warmer weather. Tick activity and the prevalence of Lyme disease, as reported by the Centers for Disease Control and Prevention (CDC), is especially high during summer months. According to information from the CDC Web site, approximately 75 percent of all reported cases are acquired from ticks picked up during activities in back yards and around home. Lyme disease is an increasingly common problem, now documented in 49 states as well as parts of Canada, Europe and Asia, and the number of positive cases here in the United States is on the rise. In the 15 year span from 1992 to 2007, CDC reports of Lyme disease across the nation have steadily increased from approximately 10,000 cases per year to more than 27,000 cases nationally.

Though Lyme disease and similar pest-related health risks are a problem, paying attention and taking a few simple, preventative steps can help homeowners and their families reduce the risk of these pest dangers that affect millions of Americans each year.

‘Human health conditions like Lyme disease, West Nile virus and others are spread and transmitted through the bites of ticks, mosquitoes and other pests we encounter in our backyards almost every day,’ James says. ‘Taking the time to eliminate high grass, standing water and other potential pest habitats is a very simple, very effective measure for reducing the prevalence of these unwelcome and unhealthy annoyances.

‘Also, insecticide sprays can be applied to turf, plantings and natural areas,’ he adds. ‘As for personal protection, applying insect repellents and inspecting ourselves and our children regularly and thoroughly after having been outside are some simple precautions that go a long way toward preventing many of these common, but serious health risks.’

By taking the proper precautions and a few easy steps to maintain a healthy, vibrant and pest-free yard, it is easy to create an enjoyable, usable backyard oasis for outdoor fun all year long.

Any questions regarding your house and making it a home, or to prepare it to put on the market, please contact us today- kjpremier@atproperties.com.

Posted in City Real Estate, Fun Info, Mortgage Rates and Information, Real Estate in a Nutshell, Uncategorized Tagged: home updates, looks for your home and garden, preparing your home for the market, updating your yard, yard ideas