WHAT'S a "WOW" house?

a "Wow" house vs. a "But" house

In my blogging of the last month it might seem that I’m on a mission to get sellers to ‘energy’ price their homes…meaning simply, to price their homes “to the market”.

The fact is I AM! I’m committed to help my Seller’s SELL their homes…a house that languishes on the market for any reason has a negative effect on the psyche of both the seller and the agent…and as days/months on-market increase, the once positive relationship that existed between the two soon becomes tested and eventually strained. I know…because I’ve seen it happen all too often!

High Supply (which we all acknowledge we have ) combined with Less Demand (again, an acknowledge fact) = LOWER PRICES/LESS VALUE.

The only answer I know to the current doldrums is to be positiond correctly IN the market! In the words a of a successful colleague( #1 NANCY )…"IF THE MARKET IS GOING SOUTH, YOU DON’T WANT TO BE NORTH!!!"

In earlier postings, I suggested having a pre-listing appraisal…which I am again advocating…Call me @ 312.882.4561 and I’ll explain my reasoning.

When pricing…we want buyers to say…” WOW, This is a really good deal" vs…"It's a nice house BUT it needs work" or "it's over-priced".

Pricing correctly will help go along way to eliminate the "BUT" response…

WHAT'S A HELOC...and what does "freezing it" mean?

The following article,reproduced in totality, was published in REALTY TIMES(Sept 10,2009)...

What Should You Do When Your HELOC Freezes Over?
by Broderick Perkins

Lenders are freezing, slashing, and cutting off home equity lines of credit (HELOC), but there's a growing manual of strategies you can use to avoid or mitigate what could be financially debilitating.

Some say it's better to take the equity money and run before lenders make a move. And why shouldn't you prudently cover your assets?

After all, lenders cover their assets when they reduce your home equity line of credit (HELOC).

When your lender issued you the credit card-like line of credit backed by your home, chances are, your home value was much higher.

Now with shrinking values, lenders want to shake you down to reduce the chance they won't get paid should you default on your home -- which now may be worth less than the total of your outstanding mortgages.

Consider it a home equity loan meltdown as home equity stakes have been stumped.

Maybe you didn't use proper home equity protection practices.

In any event, the Federal Reserve offers the latest come-to-your-rescue tips for dealing with home equity that's been hammered.

• Read the notice your lender sends you. Your HELOC lender must provide you a written notice if they have frozen or reduced your HELOC. Your lender must send the notice to you no later than three business days after the freeze or reduction. The notice also must include information about any other changes to your HELOC.

• Call your lender. Even if you have a good payment record, if your home's value has fallen, your lender may freeze or reduce your HELOC. Contact your lender if you have questions or concerns about a freeze or reduction.

• Learn why your lender froze or reduced your HELOC. A freeze or reduction notice should include specific reasons for the action. The most common reasons for a HELOC freeze or reduction are, again, a decline in the value of your home, or a change in your financial circumstances.

Understanding your lender's reasoning may help if you want to take steps to have your credit line reinstated to its original amount. For example, a lender may not be aware that you made significant equity saving home improvements to help shore up the value of your home and its equity.

Or, if your financial circumstances changed for the worse and that change resulted in a lower credit score, investigate ways to rebuild your credit.

• Ask your lender how to have your HELOC reinstated. Your lender must reinstate your credit privileges when the conditions permitting the freeze or reduction no longer exist. You may need to put in writing your request to have your line of credit reinstated. Once your lender receives your written request, they must promptly investigate and determine whether your HELOC can be reinstated.

• Remember that your lender can impose fees for reinstating your HELOC. Fees include costs for an appraisal or credit report. Your lender cannot, however, charge you a fee to reinstate your credit line once the condition that caused them to freeze or reduce your HELOC no longer exists.

For more information: New federal consumer protections for HELOCs are in the pipeline.



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Copyright © 2009 Realty Times. All Rights Reserved.

What is Money Magazine saying about Lake Forest??

Here is a little 411 on Lake Forest that you probably didn't know. Over the past 150years, The City of Lake Forest has planned the community and business district to create a unique retail environment. In fact, Lake Forest's 1919 Historic Market Square was one of the first automobile squares in America.

Over the years, the Lake Forest City Council has engaged and updated the Comprehensive Plan for the City, with the Central Business District and the West Side of Lake Forest designed for commercial business.

CNN's Money magazine recognized Lake Forest as the #3 in the 25 top most desirable places to live. With a town plan heavily influenced by English gardens, Lake Forest is home to mansions and vast estates seated on the bluffs overlooking Lake Michigan.

If you would like more information on Lake Forest or the North Shore area, give me a call and let's talk about what your options are in Today's Real Estate Market! Direct:(312)882-4561 or Email: alan@AlanLurie.com

CREDIT REPORTS UNDER EXTRA SCRUTINY

I'VE JUST READ THIS ARTICLE AND THOUGHT IT ESPECIALLY INTERESTING FOR 1stTIME HOME BUYERS...

Credit Reports Under Extra Scrutiny

Buyers who are under contract and hoping to close before Nov. 30 when the first-time home buyer credit expires should refrain from buying furniture and other things on credit.

Lenders are running credit checks prior to closing day and any increase in credit card or other debt can jeopardize the loan, says Lew Reich, an associate with Keller Williams Realty in Plano, Texas.

Reich warns buyers to even refrain from checking out a new large purchase because even an inquiry on a credit report could scare a lender.

Reich tells borrowers: “If someone’s squeaking by and, all of a sudden, they may be looking at increasing debt, the lenders will have a keener eye in looking at your loan,” he says.

“Don’t look until you’ve closed is basically what it comes down to. That’s the safest way. Stay out of the stores,” he adds.

Source: The Associated Press, Dawn Wotapka (09/18/2009)

THE WOES of the DEVELOPER

Several days ago , a builder-client asked me about the number of new constructions currently on market in Lake Forest and more particularly, the number that have sold in the last 12 months.

Curiosity caused me to expand my inquiry to include both Lake Bluff, and Lincolnshire to that search...the numbers are eye openning.

Currently, there are 25 new constructions either finished or in some state of being built...with an average market time of 223 days. compared to 4 homes that have closed during that same period.

These numbers re-inforce the National Association of Realtors and the FEDS' analysis of this classification...but my study is narrowly focused to our communities, and gives rise to the recognition of the problems of our neighbors and friends in the building trades and their employees.

Now I understanding why there are few if any "specs"...

CONDOS FORCED INTO CREATIVE ACTION...

Condo associations and their financing partners are trying innovative tactics to save the value of their properties as the foreclosure crisis widens...

In essesence, some condominium associations plan to use their reserves to buy pre-foreclosed units within their development before the foreclosures negatively impact the value of other units within their project...they then plan to "rent" them and eventually resell those units when the market improves.

The move prevents foreclosed units from being sold far below market value and protects the "comp" values. The rental income can be used to help pay monthly association fees and help defer any special assessments that might follow due to the short fall which most probably will erode the reserves of the development.

This and other tatics ...invoking hardship rules to allow for waiving previously banned rental prohibitions are but a few of the practices being considered to prop up the condo market...

You as a buyer should invesigate the financial condition of ANY development in which you plan to buy...either as a primary residence or an investment. A good lawyer and real estate agent can be helpful...

SHORT AND SWEET...

The keys to selling your home more QUICKLY than the houses with which your competing are clear:

1...HIRE THE VERY BEST AND SAVVY AGENT YOU CAN( IF YOU'RE ON THE SHORE, I'M YOUR MAN, MY PHONE IS 312-882-4561 .

2...GET A PRE-PRICING APPRAISAL.
An appraisal will provide you insight as to what a mortgage company will lend your buyer.

3...TOUR YOUR COMPETITION
Intellectually become a buyer, and objectively compare your house to those with which you'll be competing( Your agent is the key to this point).

4...PRICE YOUR HOME CORRECTLY
A "WOW" price developed after considering what was learned in steps 2 & 3 in consort with your agent will guaranty the proper positioning of your house IN the market and then take prudent reductions if and when needed.

5...GET YOUR HOUSE SPRUCED UP.

6...GET BOXES AND CALL YOUR MOVERS

DON'T DISMISS MY URGING TO HIRE THE "RIGHT" AGENT...he/she can help reduce these 6 steps into a manageable few!

WHERE DO MY POSTS COME FROM...

When I'm not penning my own thoughts, my posts are the product of restating relevant articles which I thing important to present to readers of my bloggs.

That disclaimer said...

Recently I read an article by Phoebe Chongchua who writes for REALTY TIMES. The subject to which I gravitated was about some tips if your considering a lease-to-own rental. Her thoughts were influced by Wendy Patton, who wrote "RENT TO BUY", which is out this month.

She suggests that if "rent-to-own" is a consideration...

1. Find your rentals either in Craigslist or the newspaper.
I suggest calling your Realtor...or me @ 312-882-4561.
2. Finding homes that have been on the market more than 120 days are a good starting place.
3. Find out if the house is vacant. Knowing this can allow you to put pressure on the home-owner to consider a rent-to-own option).
4. Make sure that the owner is not upside down (under water)...or will be going into forclosure during the option period.
5. Discuss how repairs will be handled.
6. Have a home inspection
7. If your credit is the the reason you are not BUYING , but instead considering this option...USE THE RENTAL PERIOD TO BUILD OR CLEAN UP YOUR CREDIT.

If you need help trying to execute this game plan, call me. Maybe I can help.

KEEP YOUR FINGERS CROSSED...

REALOGY CORPORATION, the parent of COLDWELL BANKER RESIDENTIAL, announced its support of a bi-partisan Senate bill(S.1678) introduced last night that would create a six-month(6) extension of the $8000 federal tax credit for 1st-time home buyers, and move the current expiration date forward to June 1, 2010.

The current tax credit provision for 1st-time home buyers, passed as part of The American Recovery and Reinvestment Act, expires December 1,2009.
According to the most recent data nearly 530,000 Americans have applied for the tax credit to help them purchase their 1st home. It's estimated that as many as 40% of all home buyers will be eligible for the tax credit.

The REALOGY family of companies supports expanding the tax credit..."TO ALL HOME BUYERS OF A PRINCIPAL RESIDENCE,INCREASING THE SIZE OF THE TAX CREDIT, AND ELIMINATING THE EXISTING INCOME ELIGIBILITY CAPS all of which we believe are critical to the 'move-up' or repeat buyers who we expect will drive the essential second phase of a housing recovery".

PLEASE CALL ME IF YOU STILL WANT TO TAKE A RUN A GETTING IN UNDER THE WIRE, OR POSITION YOURSELF IF THE EXTENTION IS INDEED PASSED
MY CELL PHONE IS...312-882-4561

One of the Best Restaurant's in Chicago, IL....Mobile 5 Star

One of the Best Restaurant's in Chicago, IL.

Alinea is more than a restaurant, it is a multi-sensory experience. The post-modern decor reflects Chef Grant Achatz's (a Thomas Keller protege) bold, high-tech $145 tasting menu. The service throughout this long, progressive meal, is impeccable. The traditional rules of sweet and savory match-ups are broken and redesigned. Achatz flawlessly executes everything from seafood to meat to fruit to chocolate. The wine pairings are equally wowing for connoisseurs. Dining at Alinea is formal--jackets are recommended for gentlemen.

Alienea Restaurant

Enjoy !

A LAZY MAN'S NEW WAY TO POST...

I found this interview to be "dead-on"...if you'd like to get more relevant informatiom, please e-mail me at ...alan @alanlurie.com. Until then , please click on the link in the next paragraph...

Have you been waiting for the Real Estate Market to bottom out? This is a MUST SEE VIDEO. Make sure and turn your speakers on and watch this short video about Buying at the Bottom. WATCH VIDEO NOW CLICK HERE

IF SELL YOU MUST...

IF SELL YOU MUST...
If a life syle change or the effects of the current economy are/will necessitate the sale of your home, the following are some "tips" offered to help.
I really do believe that...

1st... HIRE THE BEST AGENT YOU CAN...even if that agent isn't a friend, relative, church member or the like. Being the #1 volume agent in an office isn't always the best agent...LOOK FOR TRANSACTIONS!
In today's turbulent market hiring an seasoned agent who's been in the business full time at least 8 years...an experienced agent has been thru market changes and should be able to get ahead of what the Market is telling US.
2. HIRE SOMEONE WHO REALLY KNOWS HOW TO MARKET...agents that use template marketing as their own shouldn't be the agent for you.
3...MAKE SURE YOUR AGENT IS A STRONG NEGOIATOR...he/she represents your money! Don’t fall prey to believing that every agent is as an experienced negotiator.
4...with very few exceptions, NEVER allow your agent to become a "Dual Agent"

Dual Agency is allowed in some states, but the net effect of this practice, changes your relationship with your agent at a time when you need representation the most.( ask you agent to explain the change in his or her roles...if you’re in Illinois, and not yet "hired " an agent , you can call me for an explanation of my concerns.

PLESE UNDERSTAND THAT THIS IS MY PERSONAL CONVICTION, NOT LAW IN ILLINOIS!

5...CONSIDER GETTING A PRE-MARKETING APPRAISAL...you may not like the numbers, but you'll be armed with a better understand of what a lender will do when a buyer gets their mortgage approval....it will also help you
6...PRICE YOUR HOME RIGHT. Enough said!
7... DEMAND FEED BACK. Hold your agent accountable.
8...HIRE SOMEONE WHO "LISTENS" AND MAKE GOOD EYE-CONTACT.
9...LISTEN TO YOUR AGENT’S REASONING before you make any decisions...
10...If you're in Illinois, call me and I’ll help clarify any of these tips.

I practice Real Estate ONLY IN ILLINOIS, but I can refer you to an excellent agent almost anywhere.

DO YOU WOOT ??

Woot.com is an online store and community that focuses on selling cool stuff cheap. It started as an employee-store slash market-testing type of place for an electronics distributor, but it's taken on a life of its own. We anticipate profitability by 2043 – by then we should be retired; someone smarter might take over and jack up the prices. Until then, we're still the lovable scamps we've always been. But don't take our word for it: see what the online community has to say at this Wikipedia article.

What is the schedule for new items?
The short answer: we offer a new item every single day. The details: a new product is released every morning at 12am central time, seven days a week. (If you're not a morning person, this can be described as every night at midnight. Better?) If a product sells out during its run, a new item will not appear until the next release time. You will know if a product is sold out, because the main page says "SOLD OUT" instead of "I want one". (Clever, eh?)

FRESH PRODUCE = AMAZING MEALS !!

Visit The famous Lake Bluff Illinois Farmers’ Market. Known for it's fresh produce and lively ambiance, people visit from all over. Come early and have a fresh cup of gourmet coffee while you walk around and plan tonights dinner. For more info visit our website Farmer's Market.

It is conveniently located on the west side of East Center Avenue and the south side of Scranton Avenue adjacent to the Village Green. The Market is scheduled to take place each Friday, from June through October (7:00 a.m. to 12:00 p.m.).

Located @ West Side of East Center Avenue and the South Side of Scranton Avenue Lake Bluff, IL 60044

Map to Farmers Market

WHAT DOES "UNDERSTANDING YOUR PERSPECTIVE" REALLY MEAN

Aside from the necessity to listen completely...my definition of "Understanding Your Perspective" has at its origin...
Understanding that...
... my clients are the most important people in my business
...clients are not an interruption of my work: they are the purpose of my work
...my clients are not dependant on me; I am dependant on them.
...I am not doing them a favor by serving them; they are doing me a favor by allowing me the opportunity to do so.

Please let me know what other "values " beside professionalism, market knowledge, and honesty that you expect from YOUR Realtor?

GOT SCHOOL??

Relocating is a strain on any family. That's why Alan has put together a helpful kit to make your next move as smooth as possible. Request your copy now!

Lake Forest, Illinois, is located in beautiful Lake County. 7 miles south of Waukegan and 29 miles North of Chicago and a booming part of the surrounding Chicago Metro area. Lake Forest is a well planned city and among one of the most desired affluent communities in the United States. Home to more than 20,000 people, Lake Forest schools are rated amongst the highest rated public schools in the country.

I understand how important picking the right school is for your families future, as a member of this community I can share with you the in's and out's of Lake Forest. Give me a call or email me today and let's talk about what your options are in today's changing market. http://www.alanlurie.com/

PLEASE READ ON ABOUT...BUYER HESITATION DISSOLVING...

Buyer Hesitation Is Dissolving
ECONOMIC
By Robert Freedman September 2009
After four years of declines, home sales on a national basis finally appear to be turning around. Closed sales, which have risen three straight months, and pending contracts, up for five straight months, are at levels above normal spring and summer increases.


First-time buyers in particular have stepped up to take advantage of deeply discounted prices, low mortgage rates, and the buyer tax credit. In a few markets, the rebound has been quite heated, with sales doubling from year-ago levels. In some cases there's even multiple bidding—though mostly over foreclosed and other distressed properties. Nonetheless, it's clear that buyers are returning.

What's more, home prices and mortgage payments in relation to income are comfortably below historical levels, at least in many markets. That suggests home prices have overcorrected downward.

Some markets, as a result, could experience a snap back in home prices, with price gains in the high single digits or low double digits, compared with historical average annual price appreciation of 4 percent. Houston, Denver, and San Diego are among the markets on track to have better-than-average price gains in the next two years.

Still, the housing market is far from being out of the doldrums.

The economic rebound will be one of the most tepid we've ever seen. Consumers are being extra cautious, saving more to pump up their depleted retirement accounts. The unemployment rate in 2010 is expected to be at around 10 percent. The federal budget deficit will force up mortgage rates next year, though not alarmingly.

But because consumers' view of home values is fundamentally changing, the momentum of rising home sales will likely continue in 2010. Buyers are no longer hesitant about home purchases on the fear of further price declines. And that sets the stage for a steady release of pent-up housing demand.
___________________________________________________________________
Robert Freedman is a senior editor of REALTOR® magazine. He can be contacted at rfreedman@realtors.org.

$8000 Homebuyer TAX CREDIT will be ending soon

NEW YORK (CNNMoney.com) -- Use any metaphor you want: the ticking clock, sands running through the hourglass or pages falling away from the calendar. The fact is, time is running out to claim the $8,000 first-time homebuyers tax credit.

Passed earlier this year as part of the economic stimulus package, the credit is good for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the previous three years. (There are some income restrictions.) The best part: Unlike a similar program from 2008, the credit does not have to be repaid.
The bad part: It ends on Dec. 1.

Because it usually takes around 90 days to close on a house after a contract is signed, buyers have very little time left to act. As of Thurs., Aug. 27, there were only 96 days left before the credit ends.

"Buyers have to get a home under contract very, very soon," said Tom Kunz, CEO of Century 21. "They probably should get out looking."

SALES ARE BEING MADE...

Sunday...
In the last few days there has not been a lot to write about...but thought I'd share the over-riding sense of the market as exchanged by a lot of agents...

Most of my colleagues up and down the Shore do think that there is more activity in the last few weeks than we have seen in many months...that's a good sign. BUT there doesn't seem to be any sustained strengthening on the price side of the equation.

Consistent with my earlier writings..foreclosures and short sales still dominate the market on a National basis... Locally, there has been a slight increase in units sold in Lake Forest over the last 3 month...June saw 14 single family homes sold, while July and Aug saw 19 each month.

Lake Bluff and Lincolnshire did not fair as well...Lake Bluff went from 6 up to 9 and back to 6 in Aug. Lincolnshire went from 12 down to 5 then up to 6 in Aug. Market time was a function of realistic pricing on the seller's side.

These figures reflect units sold in ALL price points...so no trend can yet be seen. Every once in awhile an upper bracket home was sold...but that was the exception to the rule.

Again, I implore sellers to be sensitive to what the market is telling them about their pricing. Homes that are energy priced are selling...if you are considering putting your house on the market, I'd like to help you...but, in the end, regardless of who you use...consider my advice. You'll get your home sold much more quickly. Market time is the cause of angst.

Tomorrow, I'll share a thought or 2 on how to determine an energy price!

I'M NO BROWN COW...

THINK METAPHORICALLY... (think... Realtor)

To quote directly from the synopsis penned about the introductory premise of Seth Godin's wildly acclaimed marketing manifesto entitled " THE PURPLE COW" (Penquin Group,2003)... It was written ...

"...Cows, after you've seen one, or two or ten, are boring. A PURPLE COW , though...now that would be something. PURPLE COW describes something phenomenal, something counterintuitive and exciting and flat out unbelievable. Every day, consumers come face to face with a lot of boring stuff...a lot of brown cows...but you can bet they won't forget a PURPLE COW. And it's not a marketing function that you can slap on to ...a product or service...
PURPLE COW is inherent. It's built right in, or it's not there. Period"

"Among the herds of 'cows' grazing in the green fields, there was one PURPLE cow among the brown ones..."

...AND I WOULD RATHER BE IT, THAN SEE IT...