Mikes Real Estate Blog

The 2010 NAR Profile of Home Buyers and Sellers

The 2010 NAR (National Association of Realtors) Profile of Home Buyers and Sellers was released at the annual NAR conference and expo in November. This updated profile is a must read for prospective buyers and sellers, and answers such questions as:

•Who are today's home buyers and sellers?
•Do they use the services of a real estate professional?
•What role does the internet play?

These questions and many more are answered in this newly released profile of home buyers and sellers. This valuable tool provides the answers in a user-friendly format, designed to allow easy comparisons with previous studies, using a mix of charts, graphs and tables.

Chapters Include:

• Characteristics of Home Buyers and Homes Purchased
• Home Buying and Selling and Real Estate Professionals
• The Home Search Process
• Financing the Home Purchase
• For Sale By Owner Sellers

Find the full report in PDF format here: The 2010 NAR Profile of Home Buyers and Sellers 
 

Moving to a new home can be stressful on your pets, but there are many things you can do to make the process as painless as possible. Experts at The Pet Realty Network in Naples, Fla., offer these helpful tips for easing the transition and keeping pets safe during the move.

1. Update your pet’s tag. Make sure your pet is wearing a sturdy collar with an identification tag that is labeled with your current contact information. The tag should include your destination location, telephone number, and cell phone number so that you can be reached immediately during the move.

2. Ask for veterinary records. If you’re moving far enough away that you’ll need a new vet, you should ask for a current copy of your pet’s vaccinations. You also can ask for your pet’s medical history to give to your new vet, although that can normally be faxed directly to the new medical-care provider upon request. Depending on your destination, your pet may need additional vaccinations, medications, and health certificates. Have your current vet's phone number handy in case of an emergency, or in case your new vet would like more information about your pet.

3. Keep medications and food on hand. Keep at least one week’s worth of food and medication with you in case of an emergency. Vets can’t write a prescription without a prior doctor/patient relationship, which can cause delays if you need medication right away. You may want to ask for an extra prescription refill before you move. The same preparation should be taken with special therapeutic foods — purchase an extra supply in case you can't find the food right away in your new area.

4. Seclude your pet from chaos. Pets can feel vulnerable on moving day. Keep them in a safe, quiet, well-ventilated place, such as the bathroom, on moving day with a “Do Not Disturb! Pets Inside!” sign posted on the door. There are many light, collapsible travel crates on the market if you choose to buy one. However, make sure your pet is familiar with the new crate before moving day by gradually introducing him or her to the crate before your trip. Be sure the crate is well-ventilated and sturdy enough for stress-chewers; otherwise, a nervous pet could escape.

5. Prepare a first aid kit. First aid is not a substitute for emergency veterinary care, but being prepared and knowing basic first aid could save your pet's life. A few recommended supplies: Your veterinarian's phone number, gauze to wrap wounds or to muzzle your pet, adhesive tape for bandages, non-stick bandages, towels, and hydrogen peroxide (3 percent). You can use a door, board, blanket or floor mat as an emergency stretcher and a soft cloth, rope, necktie, leash, or nylon stocking for an emergency muzzle.

6. Play it safe in the car. It’s best to travel with your dog in a crate; second-best is to use a restraining harness. When it comes to cats, it’s always best for their safety and yours to use a well-ventilated carrier in the car. Secure the crate or carrier with a seat belt and provide your pet with familiar toys. Never keep your pet in the open bed of a truck or the storage area of a moving van. In any season, a pet left alone in a parked vehicle is vulnerable to injury and theft. If you’ll be using overnight lodging, plan ahead by searching for pet-friendly hotels. Have plenty of kitty litter and plastic bags on hand, and keep your pet on its regular diet and eating schedule.

7. Get ready for takeoff. When traveling by air,check with the airline about any pet requirements or restrictions to be sure you’ve prepared your pet for a safe trip. Some airlines will allow pets in the cabin, depending on the animal’s size, but you’ll need to purchase a special airline crate that fits under the seat in front of you. Give yourself plenty of time to work out any arrangements necessary including consulting with your veterinarian and the U.S. Department of Agriculture. If traveling is stressful for your pet, consult your veterinarian about ways that might lessen the stress of travel.

8. Find a new veterinary clinic and emergency hospital. Before you move, ask your vet to recommend a doctor in your new locale. Talk to other pet owners when visiting the new community, and call the state veterinary medical association (VMA) for veterinarians in your location. When choosing a new veterinary hospital, ask for an impromptu tour; kennels should be kept clean at all times, not just when a client’s expected. You may also want to schedule an appointment to meet the vets. Now ask yourself: Are the receptionists, doctors, technicians, and assistants friendly, professional and knowledgeable? Are the office hours and location convenient? Does the clinic offer emergency or specialty services or boarding? If the hospital doesn’t meet your criteria, keep looking until you’re assured that your pet will receive the best possible care.

9. Prep your new home for pets. Pets may be frightened and confused in new surroundings. Upon your arrival at your new home, immediately set out all the familiar and necessary things your pet will need: food, water, medications, bed, litter box, toys, etc. Pack these items in a handy spot so they can be unpacked right away. Keep all external windows and doors closed when your pet is unsupervised, and be cautious of narrow gaps behind or between appliances where nervous pets may try to hide. If your old home is nearby, your pet may try to find a way back there. To be safe, give the new home owners or your former neighbors your phone number and a photo of your pet, and ask them to contact you if your pet is found nearby.

10. Learn more about your new area. Once you find a new veterinarian, ask if there are any local health concerns such as heartworm or Lyme disease, or any vaccinations or medications your pet may require. Also, be aware of any unique laws. For example, there are restrictive breed laws in some cities. Homeowner associations also may have restrictions — perhaps requiring that all dogs are kept on leashes. If you will be moving to a new country, carry an updated rabies vaccination and health certificate. It is very important to contact the Agriculture Department or embassy of the country or state to which you’re traveling to obtain specific information on special documents, quarantine, or costs to bring the animal into the country.

 If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

· Refinancing your loan at a lower interest rate

· Providing a different payment plan to help you get caught up

· Providing a forbearance period if your situation is temporary

When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

· Your property is worth less than the total mortgage you owe on it.

· You have a financial hardship, such as a job loss or major medical bills.

· You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional* and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest.

A qualified real estate professional can:

· Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

· Help you set an appropriate listing price for your home, market the home, and get it sold.

· Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

· Ease the process of working with your lender or lenders.

· Negotiate the contract with the buyers.

· Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:

· A hardship letter detailing your financial situation and why you need the short sale

· A copy of the purchase contract and listing agreement

· Proof of your income and assets

· Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

· If you have only one mortgage, the review can take about two months.

· With a first and second mortgage with the same lender, the review can take about three months.

· With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

· You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

· Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

· Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Note: This article provides general information only. For advice on a specific matter, consult your attorney or CPA.

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com

The Illinois HOME START Loan Program is designed to help first time homebuyers achieve the dream of homeownership affordably. The HOME START program offers homebuyers two loans:

The HOME START 30 Year Fixed Rate Loan and an optional HOME START Down Payment Assistance Loan.

HOME START 30 Year Fixed Rate Loan
As the name suggests, the first loan under the HOME START program is a 30 year fixed rate amortizing loan insured by the Federal Housing Administration (FHA) and serviced by U.S. Bank Home Mortgage. As of June 15, 2010, the interest rate is 4.50 percent and is subject to change in market conditions.

Homebuyers have the option to utilize the HOME START 30 Year Fixed Rate Loan in conjunction with the HOME START Down Payment Assistance Loan, or use the first mortgage on its own.

HOME START Down Payment Assistance Loan
The second loan under the Home Start program is the Home Start Down Payment Assistance (DPA) Loan which allows Illinois first time homebuyers to access additional funds upfront to help with the down payment. The DPA Loan is a 10 year, 0 percent, non-amortizing, forgivable loan in the amount of 3 or 5 percent (depending on income) of the purchase price up to $6,000.

Eligibility:

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com

I have helped many clients successfully find and lease residential properties. Property types range from Condominiums and Townhomes to Single Family residences. Many rental applicants are not ready to purchase a property or can not qualify for a mortgage due to financial constraints or prior marks on their credit report. An owner of a rental property (referred to as "the lessor" on a lease contract) wants to make sure the applicant (referred to as the "lessee" on a lease contract) is able to make the monthly payments on time and keep the property in good condition during the term of the lease.

What are the usual requirements for leasing a property?

1. A signed application and authorization for credit check. Sometimes the credit check requires a non-refundable fee (somewhere around $40). Other times the owner will ask that the applicant submit a current copy of their credit report.  

2. If the application is accepted, a security deposit is usually required to hold the property. This deposit amount can range widely anywhere from 1 to 2+ months rent.  Any damages to the property incurred during the term of the lease will be deducted from the security at move-out and the remainder refunded to the lessee. 

3. Upon move-in, a check for the first months rent, and any additional agreed upon deposits such as pet fees. 

To be successful in getting the property you are applying for - as an applicant with less than perfect credit, what can you do to help convince them of your ability to make the payments on time?

What can I do to help my chances when applying for a rental with less than perfect credit?

1. Write a letter to the owner introducing yourself, explaining the reason(s) for prior marks on your credit... divorce, job loss, medical bills, etc. This letter will be presented with your application. The reason for the letter is to give the owner an idea of who you are, an explanation of the event(s) that contributed negatively towards your credit, and a reason to rent the property to you. Without this you are just a number on a credit report. 

2. Include the reasons why you want to rent the specific property... near work, in desired school district, close to relatives, near transportation, etc.

3. Outline your employment history and monthly income amount to show stability and the ability to cover the rent and monthly bills.

4. Include references such as employer contact information, previous landlord contact information, personal and professional referrals.

5. If credit and employment history are not verifiable or in really bad shape, you may want to list a cosigner that would also sign the lease and agree to assume financial responsibility that the payments will be made on time. This could be an employer, family member, friend, ... anyone with good verifiable credit and employment history.

6. Inquire about a longer lease term. This will save the owner on move-in and move-out expenses.

7. Offer to pay a larger deposit or a certain amount of months rent in advance. 

How do I find properties to rent?

If you let me know what areas you are looking in, and what requirements you have such as: type of property, location, rent amount limit, bedrooms, bathrooms, pets allowed, yard, garage, basement, etc. I will set up a custom search for you in ConnectMLS that will send you listings that meet your requirements directly to your email for you to preview at your convenience.

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com

Recently, I showed a single family property to clients of mine. The area that they had chosen to look in was in a neighborhood with great parks and schools, tree lined streets and a convenient location. The home we were looking at had been recently renovated and was really in great condition. It had pretty much all the features that they were looking for in a single family home. Nice sized bedrooms, for them and each of their young children, an updated kitchen, dining room, living room, and a finished basement, a perfect place for a playroom for the kids, great yard and a 2 car detached garage.

Before submitting a contract and after reviewing the data on an internet Sex Offender Registry Website, my clients' could not consider that home as a possibility, based on the fact that one of the neighbors was listed as a convicted sex offender, and they have young children around the victims age, which was listed in the offenders' conviction data.

This is a difficult topic. Consumers should be aware of the informational resources available to them as they determine areas and properties they may be considering. Find searchable data here:

http://www.google.com/#hl=en&source=hp&q=illinois+state+police+sex+offenders+registry&aq=1&aqi=g2&aql=&oq=illinois+state+police+sex+offenders&gs_rfai=CbktXFEhLTLafMI_KMsewiMYCAAAAqgQFT9AMj8Y&fp=716b6b9a6969951d

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com

If you did not take advantage of the homebuyer tax credit which ended April 2010, there is still good news for buyers in the area housing market. The inventory of properties remains high - somewhat less than last year at this time, and prices are still affordable. Interest rates have dropped to historcal lows - the lowest in decades. Low down payments are still available for buyers that go with FHA financing - only requiring 3.5% down. As home prices and financing remain affordable, buyers are still looking to save money. Location can be key to save money on day to day expenses when deciding to purchase a home.  If the property is within a close distance to work, shopping, schools, and other destinations visited frequently, the savings on gas and vehicle maintenance can really add up, and living near your every day destinations can also provide more time for leisure activities. Energy efficiency should also be a major consideration when deciding on a property. The costs for electricity, gas, and other utilities are day to day expenses incurred as an owner where savings can be realized. When shopping for a home, the age and condition of the furnace, appliances, windows, and orientation of the property are major factors that buyers should keep in mind that can save money. A qualified home inspection can help provide this information. As the economy and unemployment levels improve, housing prices and interest rates will follow. Even with the tax credit expired, it is still a great time to buy.

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com

On a recent special presentation episode of HGTV, The "25 Biggest Real Estate Mistakes." for buying or selling a home were listed. I thought it was a great show that provided important reminders and tips for buyers and sellers when considering a real estate purchase or sale. You can read the entire article from HGTV.com here:

  http://www.hgtv.com/hgtv/real_estate/article/0,3120,HGTV_27356_5846325,00.html

As a Realtor®, Accredited Buyer Representative ABR®, and Short Sale Foreclosure Resource SFR®, I can help guide you thru the home search, buying, selling, or leasing process. Feel free to call or email me if I can help you with your real estate needs.

Michael Skerrett ABR® SFR®

Realtor®
Milestone Realtors
Cell: 630-310-9587
Web: www.michaelskerrett.com
E-mail: mike@michaelskerrett.com