Home Inspections: What to Expect

So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a clean home inspection.

This contingency allows you to renegotiate the price you paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.

How to Choose an Inspector:
HGTV recommends that you consider the following 5 areas when choosing the right home inspector for you:

Qualifications – find out what’s included in your inspection and if the age or location of your home may warrant specific certifications or specialties.

Sample Reports – you may want to ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.

References – do your homework – ask for phone numbers and names of past clients who you can call to ask about their experiences.

Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that continued training and education are provided.

Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. It is possible that they might miss something they should have seen. Ask your inspector to point out anything to you that should be addressed or fixed. A good inspector goes through most things with the buyer and doesn’t mind if they ask questions.

Don’t be surprised to see your inspector climbing on the roof or crawling around in the attic and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace and chimney, the foundation, and so much more!

Bottom Line
Work with a professional who you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.

What If I Wait Until Next Year to Buy a Home?

What If I Wait Until Next Year to Buy a Home? | Keeping Current Matters

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market.

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

What If I Wait Until Next Year to Buy a Home? | Keeping Current Matters

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Thinking of buying a home? Call (708) 529-JUDY and mention this to receive a free home warranty, at closing, as a thank you. Call for more details.

Orland Park, Illinois Homes for Sale – May 2018

Are you looking for a home in Orland Park, Illinois?

Currently, there are 254 single family homes, condos and townhomes for sale in this southwest suburban Chicago community.

Click here for a current list of homes for sale in Orland Park.

Looking for a professional, experienced Orland Park Real Estate Agent? Judy Glockler, The Glockler Group, has unparalleled experience in the local market – over 40 years of award-winning service. Coldwell Banker Residential is the #1 Brokerage in Orland Park, in closed sales and volume – no one sells more in Orland Park. Vast market knowledge is imperative in this market.

Call (708) 529-JUDY today and mention this for a free home warranty, at closing, when you buy or sell with Judy.

 

May Is the Best Month to Sell a Home

May Is the Best Month to Sell a Home

If you are considering listing this spring, now is the time.

May is the best bet for home sellers, according to an analysis by ATTOM Data Solutions, which found that the average seller gains 5.9 percent more than market value—the highest of all months—in the fifth month of the year.

June is profitable for sellers, as well, with an average 5.8 percent premium, with June 28, pointedly, reeling in 9.1 percent—the best day of the year. May 29 and May 31 are also high-returning, with an 8.2 percent premium and an 8.3 percent premium, respectively.

For homeowners, the key is timeliness. According to the analysis, the advantage drops off sharply after June, with a 3.8 percent premium in July, a 4.2 percent premium in August, and back down to a 3.2 percent premium in September. Through the remainder of the year, the average seller earns between 1.6 percent and 2.6 percent over market value—considerably less than had they acted during the May peak.

The analysis findings’ are reminiscent of spring 2017, when May 1 through May 15 was found to be the ideal listing window. The difference now is that inventory is tighter—down 7.2 percent year-over-year—and, although homeowners are getting multiple offers, there is the burden of buying another home at the record prices they are today.

Still, it is a seller’s market, and the numbers have it: In the first three months of 2018, the average seller recouped 29.5 percent, or $53,369 at resale.

 

Judy Glockler has an industry-leading 40 YEARS of experience in the local real estate market. A career-long, award-winning Agent, what she, and The Glockler Group, offers is unparalleled. Two Professional Agents, two offices, with unmatched marketing, and a dedication to putting clients’ interest first through top-notch service.

Thinking of buying or selling in the southwest or west Chicago suburbs? Call today (708) 529-JUDY or send a message us via this contact page (contact us tab – upper right corner of page)

 

A Tale of Two Real Estate Markets

A Tale of Two Markets [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!
  • Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
  • Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!

Yes, Interest on Home Equity Loans is Still Deductible

Original post on the National Association of REALTORS® blog. 

There’s been confusion since the big tax law was enacted over the deductibility of interest on home equity loans. NAR has been saying that the interest is still deductible for the part of the loan that’s used for home repairs, renovations, and additions. And that’s the correct interpretation, according to the IRS. The agency confirmed that in a memo about a week and a half ago.

VRE 82 image

The part of the loan that’s used on the house to fix something or improve it remains deductible under the new tax law. Loan proceeds that are used for personal living expenses or anything not related to improving the home are not deductible.

The clarification is looked at in the latest Voice for Real Estate news video from NAR.

 

Robert Freedman

Robert Freedman is director of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at [email protected]

Mortgage Interest Rates Have Begun to Level Off

Mortgage Interest Rates Have Begun to Level Off | Keeping Current Matters

Whether you are a buyer searching for your first home, or a homeowner looking to move up to your next home, you should pay attention to where mortgage interest rates are heading.

Over the course of 2018, according to Freddie Mac’s Primary Mortgage Market Survey, rates have increased from 3.95% in the first week of January to 4.40% in the first week of April.

At first glance, the difference between these numbers in such a short amount of time could be concerning, but if we look at the graph below, we’ll see that rates have already started to level off and return to the mark set in February.

Mortgage Interest Rates Have Begun to Level Off | Keeping Current Matters

This is great news for anyone looking to buy a home this spring! The spring is always one of the busiest seasons for home buying, and with rates increasing even more, buyers have come off the fence to lock in great rates! This is still great advice as the experts believe that rates will continue to rise throughout the year.

Every month, Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors release their projections for where they believe mortgage rates will be in the coming months. If we take the average of what each of the four organizations is predicting for the second quarter, rates are expected to rise to about 4.48% by June.

That average climbs to 4.73% by the end of this year.

So, what does this mean?

Waiting until the end of the year to buy, with rates still projected to increase, will end up costing you more money on your monthly mortgage payment. For every $250,000 you need to borrow to purchase your dream home, you will spend $49.21 more per month, $590.52 per year, and over $17,700 by the end of your 30-year mortgage.

And that’s just the impact of your interest rate going up!

Bottom Line

If you are ready and willing to purchase a home, find out if you’re able to by sitting with a local real estate professional who can evaluate your needs and help you with next steps!

Thinking of Selling? What You Do and Don’t Want to Do…

We like working with clients to reach their goal and we have our client’s best interest in mind. If you are thinking of selling, there important things you need to take into consideration…

The Price – Overpricing sells the competition as those homes look like, well, a bargain of sorts. You want to list your home at its market, fair value, price. Some people like to leave room for negotiation, but to increase your chance of an offer or even multiple offers, you want to consider what the appraiser will use as comparables and not skew too much but of course considering the upgrades, condition of the home, location, etc.

…and (not) increasing the price – No, no, no. With the exception of new construction/new homes where features can be added etc., or adding a costly feature to the home post-listing (new windows, new roof, finishing the basement, paver driveway/patio, etc.) increasing the price after listing just because doesn’t really make sense and it can be confusing to buyers (are they desperate for more money? what caused the increase? did they get offers that were too low? so on and so on).

Showing/Selling the Home…the way you live in it –  This doesn’t apply to our  current clients who have such well maintained homes that show so well. It is often said “one doesn’t sell the home the way the live in it.” De-personalizing, de-cluttering and cleaning a home can mean the difference between and offer or no offer. Are there bold / very specific paint color or decor? Chances are buyers have viewed more than one home and if one is not that clean, has items all over the floors, countertops, personal items all over, and different, bright paint colors in ever room, they might think that the home is not that well cared for, is too specific, and make an offer for the home that shows better. If you truly want to sell, you will probably move anyway, so get a start on packing even before listing.

United States Housing Market Still In ‘Buy Territory’!

US Housing Market Still In ‘Buy Territory’! | Keeping Current Matters

According to the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index, the U.S. housing market has continued to move deeper into buy territory, supporting the belief that housing markets across the country remain a sound investment.

The BH&J Index is a quarterly report that attempts to answer the question:

In today’s housing market, is it better to rent or buy a home?

The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure the relationship between purchasing property and building wealth through a buildup in equity versus renting a comparable property and investing in a portfolio of stocks and bonds.”

While 13 of the 23 metropolitan markets examined moved further into buy territory, markets like Dallas, Denver, and Houston are currently deep into rent territory. Due to a lack of inventory, the home prices in these areas have increased by 6.7%6.3%, and 5.3%respectively from a year ago.

According to Eli Beracha, Ph.D., Co-Creator of the index, home prices will begin to return to more normal levels.

Our data indicates that prices are above their 40-year trend but not significantly so as they were in 2007. Rather than a crash, I anticipate slower growth in prices accompanied by longer marketing times for sellers and increasing inventories, which should bring prices back in conjunction with their 40-year trend.”

Bottom Line

The majority of the country is strongly in buy territory. Buying a home makes sense socially and financially, as rents are predicted to increase substantially in the next year. Protect yourself from rising rents by locking in your housing cost with a mortgage payment now.

To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent.