Short Sales and Foreclosures, a good idea?

Many people think of these buzz words today as an opportunity to “get a deal,” or simply make some quick equity when looking to purchase a property.  However, contrary to what one may think, these types of transactions may be much more difficult than originally believed.  If you’re a first time buyer, you may want to consider these points….

~You need to have your financial ducks in a row.  Often times, when banks are dealing with distressed properties, they want the new buyer to be finiancally perfect on paper.  With lending laws tightening, when dealing with these types of properties, you need to have your credit in top shape, as well as a strong down payment.

~Be prepared to play the waiting game.  When making an offer on a foreclosure or short sale, be prepared to wait weeks even months for a response from the bank.  Depending on what stage the property is in, a bank may or may not be willing to jump on the first offer it recieves.

~Keep a little cash on hand.  While in Chicago, it is customary to move into a new place with all the appliances there and installed, with distressed properties, oftentimes, the appliances, window coverings, even light fixtures, have been removed and will need replacing.  In addition, the property could most likely need substantial renovating or repair.

~Bidding wars.  Banks will oftentimes underprice a house, or ask for what is owed, and this could result in multiple offers.  Just because you are paying more than the bank is asking, doesn’t mean you’re overpaying.  Have a good agent.  Know the market.  Sometimes paying a few dollars more, could mean you get the house, and instantly gain thousands in equity.

These are just a few things one should think about before moving forward with a foreclosure or short sale.  With the proper guidance, and patience, these types of transactions could be profitable.  To find out more about how to navigate through this ever changing market, contact your Real Estate experts at kjpremier@atproperties.com.

Getting the Biggest Bang for your Buck when Remodeling

I have people ask me this question all the time, so I’ve decided to write a post, so that I can now just refer people here when asked.  I am a huge believer in do-it-yourself projects, or if you have zero handyman in you (or direct access to one), then hire someone to do it.  The thing is when people are looking to buy, a home that looks like a project or that needs a decent amount of rehab scares people away.  With that being said, you can usually find these properties at a little bit better price compared to ones that are already move in, picture perfect.  Plus, the upside of having done the work yourself is that you stand to make a nice little profit in the end when you go to sell.  But, how do you know what to tackle first?  I will give you a quick outline to consider before you start hammering away at your next home makeover.

Now, depending on what type of home you have and what area of the country you live, these suggestions will vary.  However, in downtown Chicago, in a condo high rise, most people will know that kitchens and baths sell a unit.  And surprisingly enough, on a nation as a whole, a kitchen remodel is also one of the top things to tackle.  Recovering about 83% value when reselling, a custom, modern kitchen should be high on your priority list.  If you’re in Chicago and reading this, move then on to your bathroom, which should be done in neutral, waterproof stone, that has a timeless, clean look to it.

If you own a home, or something other than a condo, or attached living, most of the other biggest bang for your buck comes when considering the outside of your home.  An upscale siding replacement, the addition or upgrade of an outdoor deck, and a window replacement were all 3 huge return winners when reselling.

On the flip side the bottom three projects which give remodelers the least return on dollars spent was, an office remodel, installing a back-up power generator, and adding a mid-size sun room.  Again, one must consider the market, other homes in the area, and what is commonplace in your region, city, and neighborhood.

For additional tips and more info on do-it-yourself projects, and remodeling, feel free to contact us at: kjpremier@atproperties.com.