Battling the Known and Unknown to Get to the Closing Table

A real estate transaction is a complex process that involves a number of professionals from a variety of industries.  At the heart of it all, however, is a seller who wants to sell and a buyer who wants to buy. 

If only it were an easy process to fulfill the simple wants of these two parties.

Unfortunately, there are key moments in the timetable of a purchase where all can come crashing down and neither buyer nor seller has his or her desires fulfilled.

The first key moment occurs during the initial contact negotiation.  Offers and counter offers can fly back and forth before both buyer and seller are satisfied with the resulting price and terms. Very often all can go awry. . .buyers trying to find a steal encounter sellers who are firm on price and neither is willing to budge.  Or, in this current market, competition for lower priced homes creates a multiple offer situation and a better buyers snags the deal.

The second crucial hurdle that must be overcome occurs during the inspection period.  The private home inspection can unearth potential issues with the property.  Repairs can be negotiated in some circumstances, but with the glut of bank owned properties and short sales in the Joliet area real estate market, an "as-is" purchase is becoming more common.  Additionally, FHA and VA loans are gaining in popularity and availability.  Both require that the home be in livable condition, with VA being more stringent still.  Navigating the potential inspection problems requires foresight and problem solving skills.  However, sometimes property condition is a deal breaker.

And even if the contract is negotiated to everyone's satisfaction, and the inspection issues are settled, very often unforeseen issues arise halting the progress toward closing.  Last minute underwriting conditions, PMI requirements, title issues. . .the list is endless and constantly changing.

Buying or selling a home is naturally a stressful process, getting to the closing table requires patience, perseverance and often a bit of creativity.  But when all the documents are signed and keys are exchanged, the effort is worth the end result.

Buy a House. . .Collect $8000 Bucks!

First time home buyers are facing a fabulous opportunity thanks to the American Recovery and Reinvestment Act of 2009.  A key component of this new legislation is a tax credit available to first time buyers.  For those of you unfamiliar with the credit, individuals who have not owned a primary residence in the last three years may be eligible to receive a dollar for dollar income tax credit of 10% of the purchase price of a home up to $8000.  This credit may be claimed in full by individuals whose modified adjusted gross income is $75,000 or less, for married couples filing jointly the income limit is $150,000.  For individuals over these income limits, the tax credit is reduced.

This credit applies to purchases on or after January 1, 2009 and before December 1, 2009 and never has to be repaid. If the home is sold in the first three years after it is purchased the entire credit is recaptured on the sale, but if the buyers live in the home for three years, there is no recapture.  In essence, this is free money available to first time home buyers who are purchasing a home and intend to live there longer than three years.

What many do not know or understand is that the $8000 first time home buyers tax credit can be claimed on 2008 tax returns.  The law allows for qualified home purchases made in 2009 to be treated as if the purchase occurred on December 31, 2008.  Even if the purchaser has already filed his or her 2008 tax return, an amended return can be filed to IMMEDIATELY claim the $8000 credit.

This is a true tax credit, a dollar for dollar reduction in what the taxpayer owes. For example, if you owe $1000 and claim the $8000 credit, you would receive a nice fat check for $7000 as a tax refund.  A qualified tax professional can assist in filing the proper forms to ensure full credit.

First time homebuyers have a unique opportunity.  This newly enacted tax credit, coupled with historically low interest rates and moderately priced housing inventory, has created a great buying opportunity for those who are willing to act quickly.

These Homes Just Need a Little Love

Some things you have to see to believe. . .

I cannot explain what may have caused the droop in this ceiling fan, but every fan in this house was in similar condition!

Or how about this stellar bathroom layout. . .

Talk about creative design. . .there must be some benefit to this particular configuration, I'm just struggling to find it.

With temperatures in the single digits lately, bundling up to tour homes is paramount.  Multilple layers are complimented by a hat, gloves, and a scarf.  Proper dressing keeps frostbite at bay and ensures that I  survive to show homes another day. 

The most interesting bargains in the Joliet area are primarily bank owned homes or REO's.  These properties have been through the foreclosure process and are now being sold by the bank that was the leinholder who foreclosed.  While most have functioning electricity, the vast majority have no gas or water service.  No gas = No HEAT!

That is ice that you see. . .care to imagine how cold it was in this home. . .

On a brighter note, the investor who witnessed me snapping those photos on my trusty iphone scored a deal.  A four bedroom home with a full basement, huge family room addition and fireplace, for $109,900.  All of this in a Joliet neighborhood with comparable properties selling in the $160 - $170K range.  After some minor cosmetic work the home will be a great rental property. 

Some bargains are worth the risk of frost bite.

Are we at the Bottom of the Joliet Real Estate Market Yet?

Everyone wants to know when the bottom of the real estate market will hit and when prices will start to rebound. Well, hand me a crystal ball and I will pinpoint the exact moment in time. . .Buyers get your checkbooks ready, I'm about to tell you the exact moment to make an offer on that Joliet home you have been eyeing. Ready. . . Seriously, economists way smarter than I am are running algorithms and scenarios and charting prices, sales and closing data to try and determine which direction the market is heading. There are loose predictions running around, but they cannot pinpoint the bottom of the market and neither can I.

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Excuse Me -- What is a Short Sale?

With the media focusing so intently on the real estate industry, I am running into people who have questions about some of the things they are reading in newspapers and watching on TV. A common question I am asked is "What is a short sale?" Basically a short sale occurs when the proceeds from selling a home are less than the mortgage balance of that home. In other words, when the home is sold there isn't enough cash to pay the bank off in full. In this circumstance, the homeowner can request that the bank take less than the balance of the loan.

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Is Your Joliet Home Listing About To Expire?

Your home has been on the market for a number of months, you have endured strangers traipsing through your living room, you have made your bed each day, kept the clutter picked up and washed the floors multiple times a week. You are ready to move and frustrated that your Joliet home has not sold. You have enjoyed your home but you are ready to hand the keys to a new owner, so why is it that no one has offered to buy your Joliet home? At this point you are probably searching the internet looking for a new Realtor to sell your Joliet home because your current one has not secured a buyer. So why is your home still sitting on the market?

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A Joliet Lender You Can Love. . .

Newspaper headlines continually remind us that the nation is in the midst of a "housing crisis." Foreclosures are at an all time high in many areas and homeowners are struggling to make payments for mortgages they probably shouldn't have qualified for in the first place. The media is digging through the rubble of the real estate industry looking for everyone who is to blame for the current situation. There are plenty of culprits to be had, the most reviled of which are the mortgage lenders who forked over easy money to borrowers whose financial situations were precarious at best. The industry developed loan "products" that made qualifying easy, but repayment impossible. Daily I see the fallout of this irresponsible practice and news headlines report that many of the big players have recently been indicted for their participation.

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