Washington, DC, December 21, 2011

Existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. Also released today were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.

Although rebenchmarking resulted in lower adjustments to several years of home sales data, the month-to-month characterization of market conditions did not change. There are no changes to home prices or month’s supply.

The latest monthly data shows total existing-home sales¹, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.

Lawrence Yun, NAR chief economist, said more people are taking advantage of the buyer’s market. “Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing,” he said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 3.99 percent in November from 4.07 percent in October; the rate was 4.30 percent in November 2010; records date back to 1971.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said housing affordability conditions have set a new record high. “With record low mortgage interest rates and bargain home prices, NAR’s housing affordability index shows that a median-income family can easily afford a median-priced home,” he said.

“With consumer price inflation rising by more than 3 percent this year, consumers are looking to lock-in steady payments by taking out long-term fixed-rate mortgages. However, the problem remains that some financially qualified families who are willing to stay well within their means are being denied the opportunity to buy in today’s market by the overly restrictive mortgage underwriting situation,” Veissi said.

An elevated level of contract failures continues to hold back a broader sales recovery. Contract failures² were reported by 33 percent of NAR members in November, unchanged from October but notably above a year ago when it was 9 percent.

Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including lower conforming mortgage loan limits, home inspections and employment losses.

Also released today are benchmark revisions³ to historic existing-home sales. The 2010 benchmark shows there were 4,190,000 existing-home sales last year, a 14.6 percent revision from the previously projected 4,908,000 sales. For the total period of 2007 through 2010, sales and inventory were downwardly revised by 14.3 percent. The revisions are expected to have a minor impact on future revisions to Gross Domestic Product.

“From a consumer’s perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices,” Yun explained.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Welcome back fellow Oak Park/River Forest/Forest Park area visitors! Mortgage rates were little changed this week, with rates on 30-year fixed-rate mortgages at or near 4 percent for the third week in a row, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey.

Rates on 30-year fixed-rate mortgages averaged 4 percent with an average 0.7 point for the week ending Nov. 17, essentially unchanged from 3.99 percent last week and close to the all-time low in records dating to 1971 of 3.94 percent seen during the week ending Oct. 6. At this time a year ago, rates on 30-year fixed-rate mortgages averaged 4.39 percent before climbing to a 2011 high of 5.05 percent in February.

Rates on 15-year fixed-rate mortgages averaged 3.31 percent with an average 0.7 point, little changed from 3.3 percent last week and close to an all-time low in records dating to 1991 of 3.26 percent seen during the first week of October. At this time a year ago, 15-year fixed-rate mortgages averaged 3.76 percent, before climbing to a 2011 high of 4.29 percent in February.

For five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.97 percent with an average 0.6 point, down imperceptibly from 2.98 percent from last week and a hair above the all-time low in records dating to 2005 of 2.96 percent last seen during the week ending Nov. 3. At this time a year ago, rates on five-year ARMs were averaging 3.4 percent, before climbing to a 2011 high of 3.92 percent in February.

Among homebuyers, 85.5 percent sought 30-year fixed-rate loans, 6.9 percent sought 15-year fixed-rate loans, and 5.9 percent applied for ARM loans. That was the lowest ARM share for purchase loans since the MBA's Weekly Mortgage Applications Survey was rebenchmarked in January.

See ya next time!

On this Veterans Day I came across this post from another Realtor that I found so appropriate. We must never forget their sacrifices. Never forget.

Gary

Here are some very important tips that I highly recommend when selling your home.

Detach yourself emotionally

Over the years I have learned the buying real estate is an emotional decision, but the opposite needs to be true for selling real estate. Emotions can get in the way of selling your property.The more attached you are, the harder it will be to convince a potential buyer to see themselves as the new homeowner.Try to get used to the idea that the home will no longer be yours. Think of it as a product to be sold. Visit every room and say "good-bye." Visualize yourself handing over the keys. Try it, I am telling you this simple exercise works wonders for you emotional state of mind.

First impression

Outside:

Pressure-wash the siding or add a fresh coat of paint. Use neutral colors such as white or off-white. Repaint or replace the shutters or gutters as needed. A contrasting color is a nice touch. Add a new doormat. Repaint or replace the front door. Make sure the front door opens and closes securely and locks easily. Make sure the house number can easily be read (replace faded numbers and remove obstructions).

Curb appeal can create a good first impression. Cut the lawn weekly while showing your home. Keep the lawn edged, fertilized and watered. Trim the bushes, prune trees and shrubs, remove weeds from the garden. Consider planting seasonally appropriate plants to add color. Plant shrubs to fill space where needed. Keep the yard tidy. Rake the leaves in the fall. Keep the walkways clear of snow in the winter. Store lawn equipment, toys, or any other large objects that my obstruct walkways.

Inside:

 Paint walls in a neutral color to appeal to a wide range of buyers. Replace burned out light bulbs. Replace carpeting or flooring that is worn out or dated.

Create an impression of order around the house (shirts in the closet facing the same way, coffee mugs in the kitchen with handles pointed in the same direction). Dishes should be put away or stacked in an orderly fashion.Towels should be freshly clean.

Keep the home bright. Open all blinds, drapes and curtains to let in maximum light. Turn on as many lights as possible, including appliance lights and closet lights.

Removing clutter

After years of living in your house, clutter collects everywhere. Removing it is a challenge since you are attached to some of these objects. You may not even be aware how much you've accumulated.Bring in another set of eyes such as a friend or neighbor to help point out areas that appear cluttered. Your agent can also help with this.

Remove as many personal items as possible - you want the buyer to visualize themselves as the homeowner and your personal effects could inhibit this process. For example, remove any family photos, books from the bookcases, and accoutrements from tables and shelves.Sell, donate or throw away items you no longer want or need. Rent a storage space to keep kick-knacks, photos, extra furniture, and other personal items. Essential items can be placed in a box and stored in a closet.

Create an open environment , free from clutter. Remove any extra furniture or objects blocking access to closets or cabinets.Keep walkways clear. Create as much space as possible. Allow the buyer's imagination to flow freely.

*Useful tip: Remove built-in appliances and fixtures you want to keep. It could be a deal breaker if the buyer learns they are not included with the home.

Limit expenses

Fixing up your home for selling need not be an expensive proposition. Focus on the major issues, such as fixing broken windows or a leaky roof. Fixing a leaking roof is less expensive than having a buyer negotiate a new roof.

Eliminate odors

Smoking and pets are a source of unwanted odors. If you're a smoker, you may want to move your smoking outside while showing your home.An air neutralizer such as an ozone spray can help eliminate smoking odors while not leaving behind the scent of a masking odor. If you are a pet owner, you may have become desensitized to the odors your pets leave behind, but others are not so immune.Cat owners should change the kitty litter daily and hide the litter box when showing the house. Shampoo the carpets. Use a carpet freshener periodically. Invite a third-party such as a friend or neighbor to assess your efforts.

Air out the house just before a visit from a potential buyer. Fill the home with inviting smells, such as scented potpourri and fresh flowers.Baking cookies, cinnamon rolls or home-made bread adds a warm and inviting atmosphere to your home.Starting a fire in the fireplace is also a nice touch.

I hope this helps!  Gary

I have found that most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we're talking about, here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000!

The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:

Most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we're talking about, here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000!

That might seem like an insurmountable amount of coin to come up with, but it’s actually more doable than you might think. Some buyers will simply save up their own cash, even if it takes many, many moons. The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:

Most home buyers’ biggest hurdle is coming up with the cash for a sensible down payment. Gone are the days of zero-down loans, so if that was your plan, you’re going to need a new one! Coming up with a down payment for a home is a challenge because it’s not chump change we're talking about, here. The down payment on a $200,000 house, for example, will run you anywhere from $7,000 (on an FHA loan) to $40,000!

That might seem like an insurmountable amount of coin to come up with, but it’s actually more doable than you might think. Some buyers will simply save up their own cash, even if it takes many, many moons. The good news is that if you still need some help to boost your down-payment savings, there are resources you can harness to power your home-buying pursuit:

1. The FHA Bridal Registry.  Yes - you read that right! The FHA Bridal Registry Program enables wanna-be home buyers to apply their families’ wedding gifts toward their down payments. And although it’s named a “bridal registry” program, you don’t have to be a prenuptial couple to use it. You could also use this program to collect gifts for graduation, the arrival of a baby or some other major life event in which people want to give you gifts.
   
   The FHA Bridal Registry works like a traditional registry, but is more flexible. The registrants visit their choice of FHA mortgage lenders and set up what essentially is a custodial savings account for the sole purpose of funding their down payment. The couple’s (or individual’s) family and friends can either deposit funds directly into the account or give the cash or check to the couple or individual, who then deposits it into the account. The account’s flexibility also goes beyond that of traditional down payment gift rules that are applicable to FHA loans, which are detailed below in insider secret #2. With the FHA Bridal Registry Program, the only gift documentation required is “lender and borrower certification of the funds.”

1. Family gifts.  Most lenders will allow home buyers to apply gift money from family members toward their down payment - within guidelines, that is. First, the lender will require a letter from the giver verifying that it in fact is a gift and not a loan. (They generally frown upon it being a loan because it would add to the buyer’s debt and change their debt-to-income ratio.) And second, the person giving you the money must be a relative. The reasoning here is that a friend will most likely expect you to repay the money, whereas a relative won’t.
   
   FHA loans will allow the gift to make up any portion or all of the buyer’s down payment, many conventional (non-FHA) loan programs will restrict the proportion of a buyer’s down payment that can come from gift money.  The lender may also have specific ways they want to see the money go into and out of your accounts. Before you accept a gift toward your down payment, be sure to check with your mortgage broker or loan rep to be sure that you’re dotting all the right i's and crossing all the right t's.

1. Your Employer.  Some companies offer assistance programs to employees. Most are government, university, large company and financial industry employers. One example is safety workers: n some areas, safety workers like firefighters and police can have access to down payment grants from their employers if they buy properties in the city where they are on-call as first responders. Also, many large colleges and universities, very large companies and banks and lending institutions offer down payment help and have below-market-rate mortgages set up for faculty members and staffers.  Check with your Human Resources department to see if any such program is available to you.
   
   
2. City/County/State Programs.  Some states, counties and cities still offer programs that lend or give home buyers some assistance for down payments. These programs vary widely in scope - for instance, many target buyers with low and moderate incomes, while some seek to help the buyers of foreclosed or fixer-upper type homes. Some don’t have to repaid - meaning they are given as grants and are forgiven entirely if the buyer lives in the property for 30 years, but must be repaid if the buyer sells or rents the home out before the 30 years elapses. The programs pretty much all have some sort of homeowner education component that requires applicants to take personal finance and homeownership preparedness classes before they can receive funds. To learn more, visit your city, county and state websites to learn about programs that might be able to help you.

1. Your Retirement Funds.  Many financial advisors would advise against this, but if you have a 401K or Roth IRA account and some years to go before retirement, you might be able to tap into it or even borrow against your own funds for your down payment. Currently, you can take up to $10,000 out of your Traditional IRA with no penalty to put toward the purchase of your first home, but you will be taxed.  You can take as much as you want out of your Roth IRA contributions with no penalty or taxes, though, and as much as $10,000 from your earnings penalty-free for your down payment.  The rules get a little tricky, here, so definitely check in with your tax and financial advisors.
   
   And while you can’t similarly draw from your 401K, many retirement and pension plans will allow you to borrow the money against your funds, then repay it to yourself – at interest. So the choice there comes down to paying your lender back with interest or paying yourself with interest. That choice should be you! But first, get some advice from your CPA or financial planner. This option might not make financial sense for your particular situation. You must consult you financial planner or accountant.

I hope this information is helpful to you. As always, feel free to contact me anytime. I am here for you!

Even with the help of an experienced real estate agent, the negotiating process can be frustrating and confusing. Many of us aren't involved in high-level business negotiations in our day-to-day lives, and even buyers who are savvy business persons aren't used to having a personal stake in the outcome. Good negotiating in real estate isn't about coming out victorious over the other side, it's about understanding the seller's motivations and striking a deal that satisfies all parties as much as possible.

The following tips can help you survive the negotiation of a real estate purchase:

Don't focus on price only

Many buyers make the mistake of thinking that price is the only point up for negotiation. Buyers can often negotiate quite a bit of value into a contract in addition to the number on the bottom line, such as a preferred closing date, the seller paying or contributing toward closing costs, concessions for home repairs, and so on.

Don't move too slowly

Real estate can be an aggressive commodity, and buyers who rest on their laurels run the risk of losing out on desired properties. On the other hand, buyers who have their financing in order from the start are best positioned to make aggressive offers and negotiate from a position of strength. The first step to jumping on a hot property is having your ducks in a row from the start.

Should you find a property that matches many of your wish list items, don't make the mistake of being overly hesitant. Make a firm, direct and quick offer to a motivated seller, stipulating a time limit for the response, and you just might get the terms you request.

Avoid responding on the spot

While you want to move fast, particularly in a hot buyer's market, never respond verbally to an offer or counteroffer. Ask for all offers in writing and respond in kind. You can still move quickly and with the help of your real estate and legal representation, but don't make any "handshake agreements" on the spot that may lead to issues later on.

Keep negotiations professional

It can be difficult not to take negotiations personally, especially when your potential home is at stake. The need to stay calm and removed from the situation is a strong reason to have the guidance of a dedicated real estate professional who will represent your interests while keeping an even keel. As negotiations progress, remain composed and direct in all your dealings. Ask the seller to be specific about any terms they aren't satisfied with and ask for simple clarifications regarding the changes they would like to see. If a seller doesn't respond well to that sort of request, be prepared to walk away. Remember that ultimately this is just business, even if from a personal standpoint the stakes are raised.

Don't make a lowball offer without a reason

There can be very valid reasons for making an offer significantly below the seller's asking price. The home may be priced well above comparable homes in the market, may have recently been assessed at a lower value, or may require costly repairs or updates. Making a lower offer under these circumstances is well within reason and, if done tactfully, can persuade the seller to adjust their asking price down.

Don't be afraid to ask

Shrewd negotiators assume that nothing is ever truly off the table, at least not entirely. When done correctly, it doesn't hurt to ask the seller for special concessions. Interested in a piece of antique furniture or the barbeque on the back patio? Hoping the seller will pay to replace worn roofing or siding? Ask for what you want, within reason. As always, be prepared to remain flexible on other terms that the seller may ask for.

Don't obsess

When it comes to the negotiation for what may be your next home, it's easy to become anxious and follow the process relentlessly. Try to remember to relax, and if at all possible leave as much of the process to your professional guides. Doing so will leave you less stressed and more able to approach the negotiation without frayed nerves.

It's going to be a busy and festive night in both Oak Park and Forest Park this Monday evening July 4th, 2011 as both Villages are planning festive firework shows. I've attended both these events over the years however, not simultaneously because that would defy the law of physics. Both Villages put on a great show which I highly recommend you attend. You will not be disappointed.

The annual GALA July 4th Fireworks Show will again be presented by the Great American Light Show Association (GALA), the local non-profit group organized to present the annual Independence Day celebration in Oak Park. Community Bank of Oak Park River Forest is the presenting sponsor of the GALA July 4th Fireworks Show for the twelfth consecutive year. GALA is a community-wide collaborative effort that includes representatives from the Park District of Oak Park, Oak Park and River Forest High School, the Oak Park Police Department, the Oak Park Fire Department and Community Bank of Oak Park River Forest.

The fireworks show will begin at dusk on Monday, July 4 at the Oak Park and River Forest High School stadium near the intersection of Lake St. and Linden Ave. The address for Oak Park and River Forest High School is 201 N. Scoville, Oak Park, IL. The fireworks show is open to the public and free of charge. Limited street parking is available, and two Village parking structures are accessible with one at Lake St. and Forest Ave. and another located at North Blvd. and Oak Park Ave. Approximately 25,000 spectators attend the fireworks show annually. In the case of a postponement the fireworks show will be held Tuesday, July 5.

The Forest Park July 4th fireworks show starts at 9:15 to be held at the Forest Park Park District Park on Harrison Street. Come early and enjoy the aquatic swimming pool. Most important have a safe and fun july 4th!

While fighting the option to return to your emotions, you must look at your home objectively.  This can only be difficult if you are allowing your emotions to get the better of you. After years of living in the same home, clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it. Clutter collects on shelves, counter tops, drawers, closets, garages, attics, and basements.

Let a friend help point out areas of clutter. They will see things in a whole new light. You can also have your Realtor make suggestions. Go through one room at a time. Here is where the storage unit may come in handy.

Kitchen Clutter

Starting with the Kitchen is the most logical place as it is a main room for any house. If you're like me, you like to have certain small appliances at the ready as they are used daily. For the few months your property may be on the market, put them away. Just have the bare minimum on the counters.  Put the toaster, coffee grinder, condiments like sugar and such in a cabinet.  Take a weekend with the kids and clean out the pantry, dishes, pots and pans that rarely get used might as well be boxed up and put in that storage unit. Think back to when you were buying a home, you would open all the cabinets and closets to see if they were going to be large enough for your family. Your new buyer may do the same. You want to create "Open Space."

Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible, removing all extra cleaning supplies. You should scrub the area down as well, and determine if there are any tell-tale signs of water leaks, be sure you get with your handy man to fix this right away or ask your Realtor if he can suggest a handy man to you.

Closet Clutter

You know what they say about clothes closets3;if you have not worn it in a year, give it to someone that will or through it out. You may be amazed at the things in your closet that is not used in your daily life. Box them up as well.  Try to think of it as the fewer things you have to box up after the property sells and you are ready to move into YOUR new home.  

Furniture Clutter

Go to each room with a friend or your Realtor and take out all furniture that does not serve a purpose other then to look at.  Box up and add to your storage unit. Then take out all the furniture that could make the room look bigger.  You may have a couch and two chairs in the living room.  Could you do with just one of those chairs and the couch instead? If so, take it to the storage unit. You can find pictures on line of how to stage your property for sale or ask your Realtor if he knows a designer that could help.

Storage Area Clutter

These areas should be as empty as possible so that buyers can imagine what they would do with the space. Remove anything that is not essential and take it to the storage area. Or have a garage sale with the intention of getting rid of things, NOT making a lot of money!

Junk Hauler

If you need a recommendation for a junk hauler I highly recommend Metro Junk Haulers. Ask for Marion Matas at 708-524-4533

Well, it's that time of year again. This weekend June 3rd and 4th, 2011 in Forest Park. I am referring to the very popular Forest Park Sommer Fest. Hosted by The Forest Park Chamber of Commerce & Development, this hip summer festival features live music, a beer garden, a food court starring popular local eateries, and local merchant sidewalk sale, demonstrations, 'Senior Square' with bingo and prizes, arts and crafts, children's entertainment, pony rides, face painting, a giant lighted slide and much more.

Growing in size and popularity each year, this family-friendly festival features two rock and roll stages. There will be two full dining areas as well as booths all along Madison so festival-goers can 'taste' why Forest Park was named "Best in Neighborhood Dining" in a 2008 Chicago Tribune poll!

One of the Chamber's biggest fund raisers, Summer fest draws upwards of 10,000 folks from all around the Chicagoland area, and is also a community favorite! There is no entrance fee thanks to the generosity of all the sponsors! I hope to see you there!

Here's some intersting news. The Village of Forest Park has partnered with Vintage Tech Recyclers and the West Cook County Solid Waste Agency to bring the convenience of recycling electronic equipment to our hometown as part of an on-going weekly event. Effective immediately, you may dispose of your unwanted electronics such as televisions, copiers, monitors, laptops, printers, etc., at the Forest Park Public Works building located at 7343 W. 15th Street between the hours of 7am and 3pm, Monday through Friday.

Some items they are not accepting include batteries, stoves, refrigerators, dishwashers, and washing machines.