Schaumburg Short Sales - Schaumburg Real Estate

The most common question I receive nowadays is what is a Short Sale? There are many Schaumburg short sales homes for sale. The long and the short (no pun intended) of a short sale is that they are a huge pain in the neck. The easiest way to break down a short sale is let’s say you owe me $100. You say Aaron I want to give $50 instead of $100 and it will take me six months decided and I may come back and say no.

Basically a short sale is when the bank is taking less than what is owed on a home. That is the good part. The true problem comes in to play when you submit your offer. You have absolutely no idea what amount of money the bank is looking for. You would assume that the bank would like to get the homes off of the books as soon as possible. The truth is that Johnny pencil pusher sitting behind the desk at the bank could care less about the deal at all. There is no rhyme or reason when it comes to negotiating a short sale. You very likely will not hear back from any for at least 4 months (I’ve seen some that have take 13 months, and some that have never received a counter offer).  There is also a chance that even if your offer is submitted at list price the bank will say they want more. 

So the moral of the story on short sales is that they make no logical sense and it’s almost impossible to pinpoint what if anything will happen. I highly recommend short sales for investor in the Schaumburg Real Estate market. If you are a regular buyer with any time frame or emotional attachment I recommend going for a regular Schaumburg home for sale.

Let’s say you are one of the brave ones that wants to give a short sale a try here are a few thing to look for.

1.)   The listing agent has experience with short sales

2.)   They have a professional negotiator working with the bank

3.)   How many loans are on the home. It’s much more difficult if there is more than one bank.

4.)   Which bank has the loan? Wells Fargo, Chase, and Bank of America are VERY hard to work with.

5.)   How far along is the short sale process

6.)   Are there any liens or taxes owed on the home?

Short Sales are a great way to good an amazing value on a home but, also a great way to spin your wheels and go nowhere fast. If you do decide to buy a Schaumburg Short Sale home prepare yourself for the ride. Happy home hunting!!!

What is Shadow Inventory and How Does it Effect the Real Estate Market

The term "Shadow Inventory" may be new to you, but you will hear it more and more over the next several months and years.  This term refers to the homes that are not on the market yet, but are destined to be for sale next year or the year after.  These are homes that banks will be foreclosing and placing for sale in the future. 

This "Shadow Inventory" is also a prime reason that many buyers are holding off, not buying at this time. Since homes that are yet to be placed for sale are a major factor affecting our real estate woes, it seems prospective home buyers should be aware of all the facts... Lawrence Yun, chief economist at the National Association of Realtors says "To be sure, the housing market is faring better in several metro areas, particularly those with decent job growth such as parts of Illinois and Washington, D.C., though it could be "choppy at times."

You probably already know where I am going with this... By parts of Illinois, he means "THE CHICAGO AND SCHAUMBURG REAL ESTATE MARKET"!

For the last 24 months I have been hearing so much about the next wave of foreclosures coming on the market and there have been quite a few that have come up. Yes foreclosure homes are a great value but are the always worth the headache? There are many things you should know before purchasing a foreclosed home.

1.)   You are purchasing the home as is where is. Which means all liens and problems with the home can become your responsibility.

2.)   They may need some work. Very few foreclosed homes are in great shape. Typically you will need about 10% of the purchase price to do repairs on the home.

3.)    The home may not be in as a great shape when you close as when you first saw it. The home will remain vacant and who knows what can happen to a vacant home in 90 days.

4.)    You are dealing with a corporation not a regular seller. Everything about the deal is about money there is no emotion and the bank will walk if the deal is not perfect.

5.)    Financing may be an issue. Fha loans require a certain in-habitability standard. If they home is not inhabitable for example: mold or no furnace, odds are you cannot get financing.

So before you purchase a foreclosed Schaumburg home, make sure you know exactly what you are getting into. Feel free to search all foreclosed homes on my website at http://www.aaronwittenstein.com/mx/Foreclosure/index.cfm?

When is the Right Time to Purchase a Home?

With the uncertainty of the economy, it is completely understandable to be afraid to take that next step towards purchasing a Schaumburg home. But, the real question is what are you really afraid of? From experience it’s one of three things most people are either are nervous about the economy, don’t think they have enough money for a down payment, or are waiting for the market to hit rock bottom. If you are unsure about your job or finances PLEASE WAIT TO PURCHASE A HOME. Just because the market time is right to purchase, it doesn’t mean the time is right for you. If you are scared about a down payment nowadays all you need is 3.5% of the purchase price to put down on a FHA loan. But, if you are waiting for the market to hit bottom ask yourself… When do we know when the market is at the bottom? Prices begin to go up!  

So you have to really ask your self is the right time to purchase? If that answer is yes you are about to enter the greatest Schaumburg Real Estate market to purchase a home and obtain a great value. If you are going to purchase a home just make sure you go through the process properly and find someone to help guide you through the number crunching process.

The main reason that we are having the economic problems is that home buyers got into mortgages they simply could not afford. Remember the home price means nothing if the payment is not comfortable. So you first want to be in contact with a mortgage professional that can get you preapproved. It is a fairly easy process. With some basic information about your income, debts, credit score, and job history you can get a working idea of what your numbers look like. Most people think it is hard to obtain a mortgage. That is not the case. People are able to obtain a mortgage that should be able to obtain a mortgage. If you have a credit score of 620, have 3.5 percent to put down, make a decent salary, and have a good debt to income ratio, odds are you can purchase a home. 

If you want to find out if you can buy a home Feel free to click below to fill out a short mortgage application http://www.aaronwittenstein.com/custom3.shtml. Jason Spock with Woodfield planning will be in touch with you to talk about your numbers. Don’t be unnecessarily nervous to take the next step. Just take the time to gather some information and find out what’s best for you.

For more information visit www.AaronWittenstein.com

Real Estate Shortage within the next 18 months!!!

Seems a little far fetched doesn't it. But, if you look at the numbers it makes a little more sense. Currently the average buyer is at the age of 30. There are 80 million echo boomers (people between the ages of 18-31) that will be entering the real estate market within the next few years. That's a potential of 80 million new buyers.

Currently many people are under water on their home and simply cannot sell if they wanted to. New construction has almost come to a full stop since the peak of the market. Also, now people live longer than they used to, so odds are they will be staying in their homes longer.

With all these new buyers and the lack of inventory all signs point to a shortage. It simple economics, the law of supply and demand! With the way the current Schaumburg Real Estate market is you can pick the home of your dream at a cheap price, with low rates, and take your time doing it. It a little more time you may not have the luxury. Do you really want to have to pick your second choice because you waited too long? 

We are in a very unique market that no one has ever seen before. The fact is even though the Schaumburg Real Estate market will see a shortage prices will most likely not go up. It sounds a little weird doesn’t it? Once again we are in a very unique Schaumburg Real Estate market and there is a very good explanation. We are still in a slow economic period, people are scared about their jobs and wages are going down. Some people that used to make 200k per year are taking less of salary so they can have a job. 

As of now the Schaumburg Real Estate market has not quite begun to pick up so it is still an amazing time to get a great home at even better price. Do you ever remember hearing your parents or grandparents say I remember when I could have had that home for 50 thousand dollars back in 1947. Do you want to be the one saying that or do you want to say I bought that home for 200 thousand dollars and it’s now worth double. Now is the time to be doing that! All sign point to this being the greatest opportunity to purchase a home ever!!! Don’t be reactive be proactive. If you have any questions feel free to contact me at 847-477-9474 or visit my website at www.AaronWittenstein.com

Rent Vs Buy

The age old questions should I rent or purchase a home. It really comes down to home comfortable you feel in to make this huge step in your life. Remember you don’t spend 100, 200, or 500 thousand dollars every day and you want to make sure that it feels right. 

All logic says that in this real estate market, especially with Schaumburg homes being at record lows, interest rates lower than ever, and massive amounts of inventory every it’s an easy yes. But, what you really need to do is sit back and evaluate your personal situation. Just because it is the right time to purchase a home does not mean it is the right time for you to purchase a home.

Start first by calculating how much rent is vs. how much your mortgage would be. It is amazing with homes prices and mortgage rates being so low and rental rates being so high it would shock you to see that some Schaumburg homes for sale may actually be cheaper to purchase than rent.  The rental market is almost 15 percent higher that it was the same time two years ago.  Also you need to look at the tax deductions you will get when you purchase a Schaumburg home. Did you know that you can write off all the interest on your loan? Talk to your account to see how much that can save you in taxes per year.  The main concern is do you want to make the commitment? Purchasing a home weather it’s a regular sale, short sale, or foreclosure is an investment that you need to be ready for. I strongly adivse against purchasing a Schaumburg home if you do not want to commit to staying put in an area, or if you are unsure about your own personal situation. 

As you see there a quite a few factors that come into play when making this type of decision. First you should consult a mortgage professional to get an idea of what your numbers will look like. Many people think they can’t get a loan. When in fact people can get loans that should be getting loans! If you  make a solid income, don’t have a ton of debt, can put down at least 3.5 percent, and have a credit score above 620 you may be better off than you think. If you have any questions about purchasing a Schaumburg home feel free to call me at 847-477-9474 or go to my website www.AaronWittenstein.com

HOME SALES UP FROM LAST YEAR

A little bit of positive Schaumburg Real Estate news. Even though home prices may be down the number of home sales are up in Schaumburg and over all of the Chicagoland Area. That’s a point not to be overlooked: Homes are still selling, and in fact this year they sold in larger numbers than last year. In the Chicagoland area, 77,792 homes were sold from July 1, 2009, to June 30, 2010, according to Midwest Real Estate Data (MRED). That’s a 29 percent increase from last year. Each one of those sales potentially provides a small boost to the sputtering economic recovery, with other home related purchases such as new appliances, furniture, and other home furnishings.

And who could blame a home buyer for splurging a bit on extras for the home when the house itself came at such an attractive price? Low prices in Schaumburg and other area and low mortgage rates have made this a fantastic year for buyers-that is. With money being so cheap your dollar will spread much further than years past. With mortgage rates as low as 4.25 percent, home prices low, and many homes to chose from you can exactly what you want at a great price. Now is a great time to get it all price, condition, quality and location.

If you are looking to get a deal on Schaumburg Real Estate or any other areas the winter may be the best time to do it. Generally in the winter people are more focused on purchasing presents than real estate. Typically sellers on the market are motivated to sell and banks want to get their inventory off the books before the end of the year. All of these signs point to you the buyer being able to get a great value on a home. So if you are really in the home market to get a good deal, you should really think about moving when it gets a little colder out because you can take advantage of a time that most people will not. What a better present to buy yourself and your family than a “home for the holidays”. And with the low prices and mortgage rates you may have enough extra cash over to buy some presents.

If you have want to search for all homes in the MLS fee free to go to www.AaronWittenstein.com. There are plenty of regular sales, foreclosure homes and short sales. Now is the time to purchase don’t let this opportunity pass you by.

What is a Short Sale?

A short sale is a sale of real estate in which the sale profits fall short of the balance owed on the property's loan. This occurs when a home owner cannot pay the mortgage loan on their property, but the bank decides that selling the property at a moderate loss is better than pressing the borrower for the full home value. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poor credit report outcomes for the borrowers. This agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan.

Purchasing a foreclosure or a short sale home can mean that you get a deal under market value.  This does not mean that the home will be in tip top shape and can result in homes that need work.  Distressed homeowners typically do not have extra money to maintain the home that they have lived in for years which can lead to costly repairs for the buyer.  Make sure to always have the home professionally inspected before purchasing a home of this nature to ensure that all disclosures for repairs are made.

With the economy constantly changing foreclosures and short sales are becoming more available to home buyers.  It is always within the interest of the buyer to have a Realtor working on their behalf.  The Schaumburg, Illinois housing market is a buyers market and sellers are willing to make deals to get property sold.   

Whether you are looking to purchase a home or sell a home work with a top Realtor in Schaumburg to get the job done.