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!