Use your Homebuyer Tax Credit funds (as much as $8,000) as a down payment on a your home purchase!

In another move to stimulate home-buying, particularly among first-timers, this week HUD announced its decision to help buyers access the tax credit funds to help cover their down payments on a home. Previously, most buyers wouldn’t receive the funds until ater they filed a tax return.

Now, FHA-approved lenders will be permitted to issue short-term bridge loans to help buyers pay down payment and closing costs at closing. Presumably, buyers would repay the loan at tax time in 2010.

Great way to take advantage of lower home prices today, rather than waiting to accumulate down payment money. After all, it’s only a buyer’s market if you BUY!

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown neighborhoods including the Gold Coast, River North, the Cathedral District, Streeterville, Loop & South Loop.

The long-awaited tax credit for first-time homebuyers was signed by President Obama recently, and here’s how it stacks up against the previous credit:

FIRST-TIME HOMEBUYER TAX CREDIT 
As Modified in the American Recovery and Reinvestment Act
February 2009

Prepared by John Poast, Chicago Bancorp. For all your mortgage needs, call him at 312-543-0688.

FEATURE CREDIT AS CREATED JULY 2008

APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008

REVISED CREDIT -

EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009

Amount of Credit Lesser of 10 percent of cost of home or $7500 Maximum credit amount increased to $8000
Eligible Property Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. No change

All principal residences eligible.

Refundable Yes.  Reduces (or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser. No change

Purchasers will continue to receive refund for unused amount when tax return is filed.

Income Limit Yes.  Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000). No change

Same income limits continue to apply.

First-time Homebuyer Only Yes.  Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. No change

Still available for first-time purchasers only.  Three-year rule continues to apply.

Revenue Bond Financing No credit allowed if home financed with state/local bond funding. Purchasers who utilize revenue bond financing can use credit.
Repayment Yes.  Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.
Termination July 1, 2009 

(But note program changes for 2009)

December 1, 2009
Effective Date Purchases on or after April 9, 2008 and before January 1, 2009.  Repayment to begin for 2010 tax year. All revisions are effective as of January 1, 2009

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown neighborhoods including the Gold Coast, River North, the Cathedral District, Streeterville, Loop & South Loop.

If you’ve been following news on the real estate market lately, it won’t surprise you that instances of Chicago homes and condos in distress — foreclosure, pre-foreclosure, etc. — are occurring more frequently than in the recent past.

Lower price tags on these properties are creating opportunites for today’s buyers…no question. But if you’re trying to navigate today’s distressed property market, you should pay special attention to the following differences in the buying process.

#1 - Timeline Differences (a.k.a. Delays)
Patience is required because, generally-speaking, things will take longer. Signatures, yes-or-no decisions, contract changes and addenda…you name it, it’s likely to take longer to obtain in a distressed situation. Whereas the seller’s agent on a regular sale need only call up their client to get a yay or nay and run over for final signatures, out-of-state banks and asset managers don’t move nearly as fast. Short sales and bank-owned properties each have their own rules. And even in a non-foreclosure divorce scenario, the couple may not be speaking or one person may not really want the sale to happen. 

…And that means more waiting.

#2 - Additional Buyer Costs
The thing to be aware of here is that some “customary seller costs” will fall to the buyer in these transactions. When you’re dealing with a mortgage lender who has already lost significant dollars, you’re dealing with a seller who’s trying to protect the bottom line. So the cost of surveys and pest inspections almost always rest with the buyer. And on condos, there may be special assessments pending. 

#3 - More Blindspots
You won’t have perfect information in advance of your buying decision on these properties. On bank-owned homes, there will be no seller’s disclosures (the bank is exempt from state law requiring disclosures)…another consequence of dealing with an out-of-state seller who has never laid eyes on the home in question. And on condos, it may take longer-than-normal to get copies of homeowners’ association documents, like board meeting minutes.

None of this is meant to discourage you from pursuing a distressed Chicago home or condo (in many cases, the deals ARE too good to pass up). Rest assured, there are contract contingencies that can be written to protect you from excessive and unforeseen costs.

Instead, just know that the process may not be as smooth as one might expect. And get accustomed to hearing your agent say, “…and now we just sit back and wait.”

Patience is a virtue, though. And as many of my clients are finding, good deals do indeed come to those who wait.

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown neighborhoods including the Gold Coast, River North, the Cathedral District, Streeterville, Loop & South Loop.

I “heard” via a one-line email from a mortgage pro that jumbo mortgage loans (those over $417,000) are available again at ~5% interest rate.

This is welcome news for luxury homebuyers in Chicago since rates on these larger loans (which have been perceived by lenders in recent months as higher risk) had previously been quoted at around 8%.

I don’t have all the details yet (it was a one-line email), but I plan to get them. In the meantime, if you’re shopping for a high-end home or condo (in the Gold Coast, for instance), get in touch for help exploring your options.

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown neighborhoods including the Gold Coast, River North, the Cathedral District, Streeterville, Loop & South Loop.

When it comes to prestigious Chicago neighborhoods, for many, the Gold Coast is without peer. And for good reason. With a prime location close to Lake Michigan & Lincoln Park, proximity to downtown shopping and restaurants, and its beautiful (often historic) housing stock, it’s top-of-list for many in search of a single-family home in the heart of the city.

Whether you’ve outgrown condo living or are relocating to Chicago from elsewhere, finding just the right home requires some important considerations. It’s important to understand the variables that dictate values in this one-of-a-kind neighborhood where asking prices range from $1.7 million to $12 million.

For one thing, certain sections of the neighborhood carry more cachet (and often, higher price tags). The blocks north of Division have a more residential feel than those that lie closer to Oak Street. And among these northern blocks, the homes on State Parkway and historic Astor are considered by many to be the most desirable. Blocks to the west on LaSalle feel somewhat less residential, but offer lower prices in some cases.

Unlike the world of condominiums — where floor plans are often ubiquitous, and only views and finishes set individual homes apart – pricing can vary greatly among Gold Coast single family homes. Most are three- or four-story rowhouses, and abut neighboring homes. So individual lot sizes come into play, as width and length greatly impact interior spaciousness as well as patio and garage possibilities. Also, certain original architects or famous previous owners can add to desirability and price tag.

Many owners of these pre-1900 era homes have re-worked and expanded their home’s layout while other homes offer opportunities to customize. Either way, a typical modern-day floor plan would include:

1st (parlor) floor: Formal living room, formal dining room, powder room, eat-in kitchen

2nd floor: Master suite w/ office, sitting room, master bath, walk-in closets, outdoor patio or deck (sometimes this is on the 1st level or rooftop level) 

3rd floor: Additional bedrooms & baths, laundry room

Lower level: Family room/Media room, additional bedroom, additional bath


Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown neighborhoods including the Gold Coast, River North, the Cathedral District, Streeterville, Loop & South Loop.

It seems we all have a fresh set of personal goals at the start of a new year. Things we want or need to accomplish in order to feel as though we’re making progress.

And while it may not surprise you that many of my goals involve real estate, you may be overlooking the need to form your own real estate-related goals for 2009. But if you think about it, you’ll recognize the significant role real estate plays (or could play) in your life. 

For one thing, your home is an important backdrop to scenes from everyday life. And whether you’re a homeowner or an all-out real estate mogul, Chicago real estate likely represents a hefty portion of your personal investments.

So how can you use real estate to “move the ball forward” this year?

Take inventory.
Where do things stand for you right now? …Are you a renter on the sidelines wondering if now’s the right time to buy? …Have you bitten off more real estate than you can affordably chew? …Or are you considering taking advantage of lower real estate prices to accelerate your wealth-building efforts?

Commit to taking action.
Depending on what your situation is, you may have some tough decisions to make (like selling for less than you anticipated or downsizing to save on monthly housing expenses). Just know that making the decision to act is progress even if what you’ve committed to something less than ideal.

On the plus side, you may want to consider ways to secure your family’s future through investment real estate. Pricing in many Chicago neighborhoods has fallen to very attractive levels for investors. Consider buying an investment condo or home as a means of building a college fund or bolstering your retirement savings.

Move forward.
If you want to leave 2009 in a better position than when you entered it, you’ll have to do something. So do some research, ask some questions, get the right help, and get moving. Most important, don’t let all the scary economic news paralyze you. Fortunes will be made in this market.

Don’t miss the opportunity to move your ball forward in 2009.

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown markets.

Dear Beloved Homeowner, 

Can we talk?

Now you may not want to hear what I’m about to say, but I do hope you’ll keep reading. I’m going to level with you and hopefully empower you to make the best selling decisions possible in today’s tougher real estate market.

Remember the way we were?
It seems like just yesterday when anxious buyers lined up to sign contracts on condos…and sellers could stick to the highest take-it-or-leave-it price they could dream up, knowing there would be plenty of takers.

Well that’s all history now. Buyers are in the driver’s seat.

But if you’re willing to embrace the new reality of selling in Chicago’s current real estate market, you can save yourself lots of time and probably some money too.

First off, ask yourself “Why do I want or need to sell?”
Before you even think about going to the trouble of listing your home for sale, answer that question as honestly as you can. What’s driving your desire to sell? Is it job relocation? …a change in income?  …a growing family? …two mortgages?

You may have other reasons, of course. But in today’s market, your motivation will make all the difference in how successful you’re likely to be in negotiating a sale. Another way to examine this is to ask: “What will happen if I don’t sell?” If the first thing that comes to mind is “Oh well, then I’ll just wait it out…” you may want to reconsider putting your home on the market in the first place. This market is not the “let’s-just-see-if-I can-hit-this-high-price-target” variety. You will waste much time with this approach.

Don’t bury your head in the sand.
Today’s market is more difficult for sellers. There’s more competition — from other motivated homeowners and from banks. And I assure you, you’d be hard-pressed to encounter a more “committed” seller than a mortgage lender with thousands of foreclosed homes to liquidate.

I have seen this play out. Banks will reduce prices on foreclosed homes aggressively to attract buyers. Some homes undergo price reductions every 3 weeks to 30 days until they get a contract. And like it or not, these properties are your competition too. If you refuse to price your home appropriately from the start, you may find yourself stuck in reactionary mode later — desperately playing catch up on price reductions.

I know Chicago homeowners who’ve seen their home values halved (or worse) while stubbornly clinging to their price month after month. Sadly, many of them now owe more in mortgages than their homes are worth and find themselves unable to sell.

Please remember two things:

  1. You need not be in financial distress yourself to have your home’s value affected by distressed properties; and,
  2. You’ll never have control over what happens to homes around you in the future (desperate sellers, foreclosures, etc.)

As a seller, you can NOT reverse current market trends. But you can be proactive about responding to them in a way that’ll help you achieve your goals and do yourself a world of good in the process. I’ll be here to help you along the way.

With Much Love,

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown markets.

For some, this will sound like little more than “hype,” but I’m going on record anyway. Ladies and gentlemen, we have officially entered the next great era for real estate wealth creation. Mark my words.

First, let’s face facts. Home prices have moderated in some neighborhoods while being decimated in others. Mortgage loans are tougher to get. And people are losing their homes at a record pace. There are plenty of sad stories (just turn on the news).

But if that’s all you see, you’re in serious danger of missing the boat.

As Warren Buffett and other value investors would undoubtedly attest, there is tremendous opportunity in times of market disruption. In 2009, the disciplined, strategic Chicago real estate investor will position him/herself to make a mint in the months and years to come.

Some will buy and flip distressed homes. Others will buy low and hold for income and long-term appreciation. And some will pick up trophy properties for pennies on the dollar…waiting for market conditions to improve. Rather than trying to time a market “bottom,” you need the right mindset and a plan.

I’ll be writing more about real estate investing next year, so stay tuned. In the meantime, search homes in areas you’d assumed you were priced out of… And make it a point to adjust your mindset a little. I promise, it’ll be worth it.

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown markets.

Every year around this time, it’s not uncommon to hear homeowners who are thinking about selling say, “We’ll just wait ’til spring to put our home on the market…when more buyers are out looking.” Not bad logic, but there are a few reasons why waiting may not be the best course of action.

Your neighbors are thinking the same thing. They’re also planning to list their homes in the spring, which means more competition if you wait. In sheer numbers, there may indeed be fewer buyers in March, but the ones out there now are serious, qualified, and ready-to-act. If you can get out ahead of the pack, you stand a better chance of attracting serious buyers who are waiting for just the right home to hit the market.

The spring market actually begins in late January/early February, when more people get out of holiday mode and into home-shopping mode. To begin the process of listing your home now means your agent will have plenty of time to get your home’s marketing up & running in time to capture the new crop of buyers. You’ll be first in line when others are just starting to get serious about putting their homes on the market.

Your circumstances or plans call for a sale by spring. If you know you need to move on by March/April, the ideal time to put your home on the market is within the next few weeks. Period. Many steps in the selling process are taking longer these days — from getting an offer in the first place, to negotiating all contract terms, to completing underwriting for the buyer’s mortgage. If you’d rather not be “under the gun” to close by a certain date, it’s best to act now.

For more information on selling your home in today’s market, click here.

Rozilyn Bryant, Sales Associate
UrbanLux Homes @ Rubloff Residential Properties

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown markets.

As year-end draws nearer with each passing hour, this may be your time…if you act now.

Why?

If you don’t need a mortgage to purchase property, you can close on a purchase before the stroke of midnight on New Year’s Eve. And you have leverage that mortgage borrowers can only dream of.

That’s because most mortgages take at least three weeks (and usually more like a solid 30 days or more) to underwrite and get approved, while cash buyers can skip steps like appraisals and underwriting and go directly to the closing table in as little as 10 days.

Both banks that own foreclosed property and homeowners looking for a fresh start next year would be happy to “clear the books” by year end. And therein lies the leverage that buying real estate “all cash” provides. Who knows what kind of deal you might be able to pull off?

Of course, not every seller responds to a “quick close” in the same way. But there are plenty of motivated sellers who would be happy to accept a discounted price to avoid the uncertainty of holding the property into 2009.

Not to mention that with all the shakiness in the equity markets of late, Chicago homes, condos, and multi-units bought at the right price might quite literally make a great home for your investable dollars. As some stock investors have learned of late, there’s something to be said for owning a hard asset (try living in your stock portfolio).

There you have it. At the risk of sounding like an infomercial, I’ll say it: “Act now. Time is running out. Tick. Tick. Tick.”

—->>For information on recent sales, market times, and active listings, get your own customized Market Snapshot or Contact Me for advice on buying or selling real estate in Chicago’s downtown markets.

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