Lyn Sims ~ Schaumburg Homes ~ Chicago Northwest Suburbs ~ Illinois Real Estate

Extreme Real Estate Ugliness - Is it a new sport?

Fri, 10 Feb 2012 14:03:28 -0500

Extreme Real Estate Ugliness - is it the new 'club'?

Looking thru the MLS each week can be filled with both frustration and laughter. There are pictures of homes or rentals that are just so ridiculous you have to laugh. But then, reality sets in and you say to yourself 'How many did you see this last week alone'.

Will I suffer permanent damage to my retinas from all this ugliness?

How many rooms have I seen in 'Big Bird Blue' or 'Spiderman Red'? Not even Barbie can sleep in a room that pink! Worse yet, the lack of staging and overall presentation of the listed homes seems to be getting worse!

Gwen Banta pokes fun at the MLS each week with verbal bloopers and I wish we also had a group or MLS that offered up hilarious 'eye sores' all in one place. I'd like to start something called the 'Eye Sore Sweepstakes'. This would be the first entry.

Why should I just run out and show this listing?

You need 2 shots of this horrific Kitchen? Looks like 'wall to wall' wood.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Northwest Suburban Real Estate Market Update - January 2012

Thu, 09 Feb 2012 17:37:47 -0500

Real Estate Market Update - Northwest Suburbs - January 2012

In the month of December I reported that I felt the market was slowing down but I was still quite optimistic for the end of the year sales. At the final tally, we did well over the 2010 sales year. I still feel that things are taking off too slowly with the great interest rates we currently have and the mild weather we have been experiencing.

My research shows that January sales have been down for most towns in our Northwest Suburban area. This is also validating my market feelings.

Another good statistic is when the market is steady (or going up) with the number of homes that go under contract each month. Currently we are between 10 to 17%. This is terrific!

The inventory level (absorption rate) has also held steady but we've just really begun the winter months which has been a traditionally slower sales time. If inventory increases dramatically going into the spring market, prices will surely decline. The inventory level has been low between 4 to 7 months.

I have now been including the highest sales prices for the month in Single Family homes and just introduced it for Multi-Family Homes this month. This is so we can begin to watch the 2nd tier home sales increase in their sales also. The market will always recover from the 'bottom up' with the lower sales prices showing the largest number of sales until the 2nd tier breaks free. This will be an indication that the 'move up' buyers have finally been able to take advantage of today's prices and the low interest rates. This will be the next trend in the recovery.

Single Family Homes	January 2012 Total +/- over December	2012 YTD Total	% YOY Change	Avg. Sales Price 2012	Avg. Days on Market	Highest Sales Price
Bartlett	16 Down	16	+33%	$255,682	172	$450,000
Elk Grove Village	14 Down	9	+12%	$223,034	229	$400,000
Hanover Park	11 Down	11	+10%	$116,455	91	$180,000
Hoffman Estates	16 Down	16	0%	$242,569	79	$467,000
Schaumburg	15 Down	15	+36%	$221,144	145	$429,900
Streamwood	17 Down	17	+41%	$115,213	85	$356,000

Multi-Family Homes	January 2011 YTD Total +/- over December	2012 YTD Total	% YOY Change	Avg. Sales Price 2012	Avg. Days on Market	Highest Sales Price
Bartlett	6 Down	6	+20%	$89,400	202	$155,000
Elk Grove Village	7 Down	7	+16%	$55,200	41	$90,000
Hanover Park	12 Down	12	+140%	$75,384	172	$205,000
Hoffman Estates	15 UP	15	+114%	$71,482	138	$220,000
Schaumburg	35 Down	35	+75%	$95,366	157	$352,500
Streamwood	12 UP	12	+33%	$108,446	247	$227,000

Average Days on the Market needs no explanation and you can clearly see the times are agonizing for sellers. None of our Northwest Suburban market areas are lower than 2.5 months of market time.

Yes ... we are recovering here in our area for 10 months in a row. Month over month we have seen an increase in closings and year end sales increased over the dismal start of 2011. One of the reasons I show the 'month over month' totals is to show you we truly are having sales increases - it's not just sales hype!

The number of 'pendings' (mentioned above at 10 to 17% of currently listed homes) has also increased but you can't count on all of these making it to a successful close!

Looking for an agent that's really a market expert? Let's get your Northwest Suburban home on the market and priced right to sell!

Is your current agent showing you any of this information?

Do you feel your current agent is 'flying by the seat' of his or her pants when answering these questions?

Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.

Sources: MRED January Stats 2012

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg IL Real Estate - 10 REASONS NOT TO STAGE YOUR HOME

Tue, 07 Feb 2012 14:14:57 -0500

Are you a seller that just LOVES people traipsing through your home? Looking forward to at least a 6 month market time minimum? I'm always trying to bring my readership great advice and trends. Even though staging is not a trend - some people still aren't convinced of it's advantages.

Great staging advice on what 'not to do' when selling your home & why getting staging advice could be a real benefit for you. Thanks to Janet Jones in Hawaii.

Via Janet Jones, Kihei, Maui, Hawaii Home Staging/Interior Redesign (Just Your Style Interiors, LLC):

1. We want to test the market for 90 days. And on the 91st day? Price reduction--and 90 days worth of potential buyers who have already eliminated your property.

2. It costs too much money. I have never seen a home where the staging costs would have exceeded the first price reduction. And that doesn't even factor in the monthly carrying cost of the home.

3. We can't stage the house, we're living in it. One common misconception is that staging is only for vacant homes. Every home/condo can be staged, and you can actually live in it after staging.

4. We didn't have to stage any of the other properties we sold over the years. Yes, once upon a time you could generate three offers by 5 p.m. on the same day your Realtor put the For Sale sign in your yard. Not now. Buyers are picky and they have a lot of homes to choose from.

5. Everyone loves our house so buyers will love it, too. What you, your friends and relatives love about your house may not be what today's buyer wants. Sellers are often baffled by the feedback they get after showings--amazed that buyers have found things they don't like about the property.

6. We can clean the carpets and declutter without someone telling us how. Yes, you can (and should) do this, but it is a tiny piece of staging. Do you know what separates "clutter" from "asset"? And what about all the other things that staging encompasses, like traffic flows, highlighting architectural features, updating, and appealing to your target market?

7. We have no desire to remove/change our _______________ (wallpaper/mirrored tile/gold faucets/paneling/dated light fixtures . . .). And neither do buyers. Better to keep your home or be ready to sell at a deep discount.

8. The view alone will sell this place. Then why many months later are these great view homes/condos still on the market? Could it be that buyers want something to go with the view--like a comfortable, move-in ready home?

9. We would rather let the buyers makes their own paint/flooring choices. And that equals a price reduction. If buyers do make an offer on your home they will double or triple the cost of these items and reflect that in their discounted offer price--which includes a deduction for the inconvenience.

10. Our home is professionally decorated. A professionally decorated home is tailored to the owner's particular needs. Does it work for the new buyer's needs? You could see #1 above . . . .

These are all great reasons--

for price reductions

for extended time on the market

for buyers not coming to look at your home

for buyers not coming back for a second look

There are dozens of reasons not to stage, but only one good reason to stage--getting your home sold faster for the highest possible price. Staging is preparing your home for sale and creating a home that buyers want to buy. If you want to be in the best competitive position in this market today, consult with a professional home stager before listing your property for sale.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Trouble is Brewing! Associations and their FHA Approval

Mon, 06 Feb 2012 13:35:17 -0500

Townhome and condo subdivisions all over the Schaumburg area hire management companies to help them sort out the variety of problems with managing a substantial subdivision. Foreclosures are also a recent addition with lack of payment by owners and by the banks themselves once they own the homes.

I can't remember when it was ever a tougher financial burden than it is now. Homeowners that join the board to volunteer their services on behalf of others, now have to know finances, budgets, legal proceedings, and construction. Many associations do have a legal team on board to help them make these decisions and stay within the law. Many are smaller and feel that the need is just too costly for legal advice during general monthly meetings.

All of these scenarios are correct and within the law for IL subdivisions. But my concern is, when does it become negligence when the management company or attorney DOES NOT advise the board correctly or worse yet not at all? 'Not knowing' can also cause great financial harm.

Case in point with management companies not telling the homeowner board members that their FHA approval and certification has expired last year. It seems that management companies are not aware that FHA approval is no longer for 10 year intervals as in times past. New guidelines are in place with stricter banking regulations affecting mortgages. All FHA approved subdivisions must re-apply and re-certify themselves with added financial paperwork so buyers can benefit by using FHA loans.

Where is that line with negligence?

Isn't it negligent for the management companies NOT TO suggest and bring up that renewal is eminent? This has recently happened in a few subdivisions here in the Schaumburg area. The management companies thought that 'it was no big deal' and didn't offer any suggestions. If it wasn't within their 'scope of knowledge' then who helps the board directors with this decision? If there is an expiration date on the FHA certificate and no one brings up the motion to renew the certification and the date passes, who's fault is it or where does the responsibility lie?

I see it clearly as the management company's role and this vital certification should be handled like any other important business renewal regarding insurance and repairs. I am suggesting that board members (and homeowners) are going to quickly get a whiff of this negligence and management companies across the country better watch out for the backlash.

I smell a law suit on the horizon.

What percentage of Schaumburg Homes are foreclosures?
Schaumburg's Top Selling Subdivisions
High End Foreclosures in the Chicagoland Area for 2011
Schaumburg Homes - Why pricing is more important than ever!
Short Sale Reform, Foreclosures and the naked guy
Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Serendipity and my Chochkies!

Sun, 05 Feb 2012 13:27:47 -0500

Many things can always be learned along the way that sometimes just don't seem related.

Here's a story about me selling my furniture and chochkies from my office. All the furniture, pictures, etc. have been placed on Craigs List & I've been selling up a storm. Cash only, ain't America great, come & get it!

The last thing left to really sell has been an antique looking coat rack that I got years ago from Pottery Barn (I think?). So time goes by & this ends up being the last thing & I decide that I'll keep the darn thing if someone doesn't buy it soon - like tomorrow! Get an email from an interested party & she will be driving down from Wisconsin in a few days to get it on her way into Chicago to see a play with her friends on the North Shore. Wow, an interested party from another state - cool.

Thumbs up for Craigs List!

I meet her at my office & she loves the coat rack & decides to tell me a story 'because I'm a Realtor®'. It turns out that she has sold her house in Madison, WI and in her bathroom she had to leave this exact coat rack using it to hang towels in her bathroom. Buyer wanted it, no doubt about it. Her Realtor® in WI told her you 'better leave it'. So .... she decides to get on the internet to find another one. She'll be eventually moving to Seattle to retire with her husband & can't wait but she's really upset in having to leave that coat rack.

So back to Craigs List - she found it by the keywords I used in my ad which were 'Pottery Barn' coat rack. A hit with my SEO knowledge gets the sale done! Who would have thought but I guess it came right up in Google & when she saw the pictures she couldn't believe her luck.

So while she's talking I'm thinking to myself 'why didn't I think of using that in the bathroom for towels?' That would be a great idea with a unique side that I'm always looking for. Darn, I've got to sell it to her that's for sure because she's driven down from Wisconsin for heavens sake. Double drats.

So we part ways & she is so thrilled that she found the exact thing - Serendipity.

Realtor® understanding the whole scenario - Serendipity.

I've learned that no matter what do not forget to use the correct placement of your keywords in all your advertising & efforts no matter how small! Google Serendipity.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Hoffman Estates IL Homes - The Mistake Many Sellers Make Relisting In The Spring

Fri, 03 Feb 2012 17:36:53 -0500

It's that time of the year again for the 'SPRING MARKET'. Sellers always seem more optimistic about listing their homes at this time of the year but will it really make a difference? What are the chances of their home selling?

It's not only the time of the year that makes a home sell or not sell as this post suggests. Trying the same thing over & over again hoping for a different result is just 'real estate madness'.

Maybe it was you - not the market?

Thanks to Sharon Tara for this great post. I have featured her many times with her wonderful staging suggestions.

Via Sharon Tara New Hampshire Home Stager (Sharon Tara Transformations):

Warning! The Mistake Many Sellers Make Relisting In The Spring

Are you one of the many sellers who took their house off the market last winter, intending to relist in the spring? If so, it's almost time....and you could be making a very costly mistake. Do you know what the problem was when you first listed so you can avoid repeating it?

Many sellers take their house off the market blaming the time of year, the economy, or the agent...when the real problem is the condition of their house. It's important you learn from your experience and, this time around make some changes in your approach to selling.

Sellers who expect better results by simply changing seasons and/or hiring a new agent usually end up disappointed.

"Insanity is doing the same thing over and over again and expecting different results"

Albert Einstein

If you want different results this time around, you need a different approach. Increase the perceived value and set your house apart from the competition.

Make condition and presentation your priority.

When choosing an agent, check out the MLS photos of their current listings.

Consult with a Professional Home Stager for advice on the most cost effective improvements.

Prepack as much as possible.

Clean, paint, and update.

Organize kitchen cabinets and all closets.

If you don't choose to improve the condition, then you will have no choice but to lower the price.

That's insanity!

______________________________________________________________________________



For More Information Visit My Website

Professional Home Staging services for the New Hampshire Seacoast

Portsmouth   Rye   Greenland   Hampton   North Hampton   Exeter   Dover   Stratham

603.661.8524

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - Ten things to REMOVE before you start showing your home for sale!

Fri, 03 Feb 2012 17:27:33 -0500

Boy, I just can't say some of these suggestions enough when it comes to staging your Schaumburg home for sale.

I'm going to keep at it until everyone gets the message on preparing their home for the market! YES, it's that important.

Thanks to Lindsey Hasford of Minnesota for this post.

Via Lindsey Hasford (Coldwell Banker Vision):

Everyone has heard rumors of de-cluttering when it's time to sell your home. But, what does that really mean? Before going hog wild and moving out... here's a few of the most important things to consider removing before you list your home for sale.

10. Personal photos. I don't always recommend removing photos of the 'family' but if you have hallways filled with photos or photos on every end table it is probably necessary. Buyers really DO get distracted by them. They will take them all in as they walk down the hall. Not only do they take away from the home, but it's really disturbing when a buyer is excited to 'know' the sellers. And, the buyers do look at them.

9. Bills and personal papers. I understand that you cannot remove these document from the home all together, but please take the time to organize them, box them up and put them out of sight. If you have bills laying out on the counter or kitchen table it's like an invitation for the buyers to 'peek' at them. Believe me - I discourage it - but it still happens. And as a seller you just don't want to leave the temptation behind.

8. Money. I would love to say that every buyer (and Realtor) going through every home is honest, but I really don't want to test those waters. If you have cash, cash boxes or coin jars sitting out in the open... put them away. It's just better for everyone if it's out of sight. As Realtors we do what we can to protect your home, but your help makes a difference!

7. Valuables. Jewelry, watches, valuable antiques.... anything that might be worth a bit of money that you wouldn't want to lose. Out of sight, out of mind. If buyers don't know they are there they won't think about it. I can't tell you how many homes I've been in where the jewelry is left on the dresser.... somehow it's uncomfortable. At least put it away.

6. Guns and ammo. I don't care if they are in a case or out laying around or under a bed. It's better if you just plain old remove them from the home prior to listing. For some reason they make buyers (in my experience) feel really insecure.

5. Shoes! If you have a pile of shoes at the door... ask yourself why. A pile of shoes gives a buyer two impressions. The first? That there isn't enough storage in your home. 2. That there are too many people living in the home. So, in order to avoid wondering on the part of the buyer... just put them away.

4. Medicine. Take it out. Don't store it on the counter. Don't store it in the cabinet. Don't store it in the bathroom. Remove it. There have been many complaints over the years of potential buyers 'stealing' the medicine out of the cabinets. I have never had it happen on my time clock, but to avoid any trouble it's best to simply remove it.

3. All things on your kitchen counter. Everything? Really? Yup. The cleaner you can leave the counter, the more buyers dream of being in there. Have you ever been in a cluttered kitchen? Does it feel inviting? How about a cleaned up kitchen? Does it make you wanna spend time there? Also, if you store things on the counter it gives the appearance that you do not have enough storage space.

2. No more junk drawers. Seriously. Clean 'em out. There is nothing more tacky than a potential buyer opening the cupboards and drawers and having things sticking out everywhere. Box up all the notes, pens, tacks, and odds and ends and put them away. Chances are you don't dig in the drawer often anyways.

1. Nothing but magnets.... and maybe not even that. Take a photo of your fridge, take everything off, wash the front (and side), and take another photo. It is really refreshing to walk into a home that has a clean fridge. The kids pictures are beautiful (believe me... my fridge is covered in them) but buyer's can't imagine their own children's drawing on there if it is covered with yours. And, the magnets... If they aren't decorative (and even then) they are generally more of a distraction to the room than a help. Consider it.

There are many more ways to declutter a home for sale... but these are some important things to consider. For more information on selling your home in Minnesota... give me a call.

_________________________________________________________________________________________

                 In the meantime... if you are looking to move into the area... I'll wait for you to call!

Selling Real Estate in Minnesota!

If you are looking for professional real estate services I am only a ring away! I am looking forward to working with you. And, please feel free to share my name with anyone that you know who needs assistance buying or selling a home ~ I love referrals!

                                                   Lindsey Hasford, REALTOR
                                                        Coldwell Banker Vision
                                             231 Main Street - Elk River - MN 55330
                                          763-241-5488 (office) 763-218-1347 (cell)
                                         lindseyhasford@coldwellbankervision.com
                                                  http://www.hasfordhomes.com

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Township Assessor - Tax Appeal Seminar

Fri, 03 Feb 2012 12:45:42 -0500

Tax Appeal Seminar is scheduled

The Schaumburg Township Assessor recently announced that the Cook County Board of Review will accept appeals from January 24, 2012 – February 22, 2012. Appeals may be done at the Schaumburg Township Assessors office during normal business hours, Monday through Friday 8:30am – 5pm or on line at www.cookcountyboardofreview.com. The Assessor encourages all taxpayers to appeal if they think their property assessment is too high.

The seminar will be held on February 13, 2012 at 6:30pm at Schaumburg High School, 1100 W. Schaumburg Road, Schaumburg, IL 60194.

The hour-long session includes a presentation by Commissioner Patlak that explains how property taxes are calculated and the appeal procedure of the Board of Review. The event will end with a question and answer session followed by an opportunity for taxpayers to work with analysts from Commissioner Patlak’s staff to address their concerns and to receive assistance filing an appeal. Taxpayers are asked to bring a copy of their most recent tax bill.

What percentage of Schaumburg Homes are foreclosures?
Schaumburg's Top Selling Subdivisions
High End Foreclosures in the Chicagoland Area for 2011
Schaumburg Homes - Why pricing is more important than ever!
Short Sale Reform, Foreclosures and the naked guy
Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

ASUS Zenbook - One person's story about their customer service!

Thu, 02 Feb 2012 12:56:42 -0500

Gail is not being treated fairly with a new product she purchased the ASUS Zenbook. This laptop is being touted as the slimest, lightest this side of an Apple. Please help if you can.

Thanks!

Via Gail Robinson, Black Rock CT Real Estate blackrockhomesforsale.com (William Raveis Real Estate, Southport, CT):

For those of you considering buying an ASUS Zenbook, I want to share my experience to save you the pain I've been through. I paid $1,550 for the ASUS Zenbook UX31E (their top of the line model) on 11/21/11 from New Egg.com. On 11/28/11 I received the computer and began using it. It worked fine for the first four weeks and then began having problems starting up.  On 1/14/12 it didn't start at all and on 1/17/12 I sent it in to be serviced as instructed by ASUS (it was now just beyond NewEgg's 30 day guarantee).  They received the computer on 1/20/12.

I have had no phone calls or e-mails from ASUS at all. I have to call their Customer Service hotline, which consists of people in Malaysia or some other foreign land peering at a computer screen reading back to me the exact same information I obtain from the ASUS Service website. It is now almost two weeks and there is no indication on when my computer will be returned. The ASUS Service site states, "Waiting [WB-1] Wait for Material/Spare Parts".

Well, I've had it! I'm starting a social media campaign to put pressure on ASUS to either fix my machine or send me a new one! My client files are on that computer and it is very difficult to work without my files. Please reblog this post and Tweet it with the hashtags #ASUS #GailRobinson. Let's see if social media can work to get this arrogant giant's attention.

Thanks,

Gail

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - What percentage of homes are foreclosures?

Wed, 01 Feb 2012 14:05:30 -0500

What percentage of Schaumburg Homes are foreclosures?

When we look at foreclosure numbers that perhaps we have heard or seen on the news, often times they are for trends that are national in scope. We always have to sharpen our focus and whittle down those statistics to the state level, then by metro area, then finally by the town itself. Don't pay attention to the media which is great for over dramatizing news especially when it comes to the housing market and foreclosures. Granted, there are some very hard hit areas of the country and we are fortunate here not to be one of those areas which I hope you realize. Real estate is local in nature so let's take a look at what is happening in Schaumburg:

Let's look at the total of Schaumburg Homes sold (249) and then what percentage of those closed were foreclosures. Our MLS has us report each foreclosure, short sale and court sale just for these purposes and these are accurate numbers from 2011.

The lowest foreclosure price was $100,000 and the highest was $441,000. Foreclosures were 14% of Schaumburg Homes that have closed. In an earlier report for the 1st quarter of 2011, they were at 20%. Townhome and condo sales were not done at that time but I have included them in this report.

Town of Schaumburg	Total Sales for 2011	% of those Sales
Home Sales	246	14%
Townhome/Condo Sales	403	22%

So there are the results for our Schaumburg area. Hope that makes you feel better and if you are thinking of selling your home in the near future, please don't hesitate in giving me a call.

Search Schaumburg Homes
Search Schaumburg Townhomes or Condos

High End Foreclosures in the Chicagoland Area for 2011
Schaumburg Homes - Why pricing is more important than ever!
Short Sale Reform, Foreclosures and the naked guy
Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Preparing your Schaumburg Home for Sale - 6 worth the price fix ups!

Sat, 28 Jan 2012 13:35:08 -0500

6 Worth-the-Price Fix-Ups

Simple and affordable do-it-yourself projects can greatly increase a home's resale value, according to HomeGain's annual home improvement and staging survey done in April 2011.

The company surveyed nearly 600 real estate professionals to discover which DIY home improvement projects give sellers the biggest return for their buck. Here are six projects under $1,000 (amounts are estimated) that made the list.

1. Cleaning and decluttering. Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean. ◦ $290 Cost ◦ $1,990 Return

2. Brightening. Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows. ◦ $375 Cost ◦ $1,550 Return

3. Smart staging. Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background. ◦ $550 Cost ◦ $2,194 Return

4. Landscaping enhancements. Punch up the home’s curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured. ◦ $540 Cost ◦ $1,932 return

5. Repairing electrical or plumbing. Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures. ◦ $535 Cost ◦ $1,505 Return

6. Replacing or shampooing dirty carpets. Steam-clean carpets, replace any worn carpets, and repair any floor creaks. ◦ $647 Cost ◦ $1,739 Return

Excerpted from HomeGain’s 2011 Home Sale Maximizer Survey: www.homesalemaximizer.com.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Waiting to See How it Goes Before You Stage Your Home for Sale? Here are 6 Reasons Why You Shouldn't!

Fri, 27 Jan 2012 14:41:52 -0500

The time to prepare you home for going on the market IS NOT after it is listed. Here's a good post on the reasons why after you list your home & things are not going well is a big mistake!

You should try for the biggest & best impact that your home can make! You should put your best foot forward in this market with all the added inventory and competition. Many people just don't care & it's shows. Make your home stand out with buyers.

Thanks to Kathy Streib in Florida for this well thought out advice.

Via Kathy Streib-Home Stager-Palm Bch County South Florida - 561-914-6224 (Room Service Home Staging):

Home Staging Tips in Palm Beach County- Waiting to See How It Goes Before You Stage?   Here Are 6 Reasons Why You Shouldn’t.

I run into this all of the time when I speak with Realtors... they have your home listed and are doing everything they can to get it sold for you. They’ve done their research and have suggested the best List Price for your home based on the market, your competition, location and condition of your home.

There are items regarding condition that your Realtor feels need to be addressed to give your home the best chance of selling but you’d rather wait a month to see what happens.

What are you waiting for? Now is NOT the time to Wait and See........

6 Reasons Why You Shouldn’t Wait to Stage:

1. A Newly Listed Home is like a loaf of fresh bread... it begins to get stale the longer it sits there.

2. What you invest in staging and preparation will be far less than that first price reduction you’re asked to give.

3. The “What’s wrong with it?” cloud begins to form over your house.

4. The longer it sits, the longer you “get” to make sure your home is “Show Ready” every day!

5. Every day your house sits on the market it’s costing you money... your mortgage, utilities, insurance..... and preventing you from moving on.

6. Your first and best chance at getting a showing appointment is via your MLS listing and the photos that accompany it.    Studies have shown that 90+% of Buyers begin their search on the Internet.   Are you willing to rule out such a huge portion of Buyers because of your MLS photos?

So tell me again... why are you waiting to Stage your house?

Check out my about.me profile!

Room Service! Home Staging
Palm Beach County Home Stager

561-914-6224   Kathy@MrsHomeStaging.com
www.MrsHomeStaging.com

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

High End Foreclosures in the Chicagoland Area for 2011

Fri, 27 Jan 2012 14:29:37 -0500

High End Foreclosures in the Chicagoland Area for 2011

You'd have to admit that 2011 has been another unusual year for all of us in real estate. I've recently stumbled upon some interesting foreclosures in our area. Obviously, not your average foreclosures as you'll see.

Bannockburn $2,000,000

French Manor, 5BR's, 7.5BA's, 6 Fireplaces, 4 Car Garage. Built in 2008 on 3.5 Acres with 6624 square feet plus 3400 square feet basement. Don't forget the theater, exercise room and taxes of $44,100 per year.

Barrington Hills $800,000 (the steal award!)

3 Stories, 6BR's, 10.5BA's, 6 Fireplaces, 12 Car Garage, Porte-cochére. Built in 2007'ish on 5 acres with 15,000 square feet. Family room is 54x32, tennis court, indoor & outdoor pools, 3 ponds, putting green, ballroom, in-law suite.

I just want to add that with this sized property don't you think you could bring a decent camera?

Naperville $1,949,276

2 Story Stone & Stucco, 6BR's, 7.5BA's, 7 Fireplaces, 4 Car Garage, Porte-cochére. Built in 2007 on .47 Acres with 8347 square feet. In-law suite, theatre, wine cellar, river location.

Burr Ridge $1,600,000

2 Story, 5BR's, 5.5BA's, 6 Fireplaces, 3 Car Garage. Built in 2003 offering 5859 square feet. Theatre, exercise room, wine cellar, paver drive & gated entry here. Taxes are $35,200 here.

North Barrington $1,125,000

2 Story, 5BR's, 6.3BA's, 6 Fireplaces, 4 Car Garage. Built in 2005 with 7020 square feet, pool overlooking Wynstone Golf Course, library, theatre, elevator. Taxes are $32,800 for this beauty.

My territory is in the Northwest Suburban market near Schaumburg. If you are looking to purchase or sell your home, please don't hesitate in giving me a call.

Source: MLSNI 2011 for informational and entertainment purposes only.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg's Top Selling Subdivisions for 2011

Tue, 24 Jan 2012 13:32:44 -0500

Schaumburg's Top Selling Subdivisions for 2011

Looking for a Schaumburg Home? Glad you're here and I'd like to present to you the most popular selling subdivisions in Schaumburg. Each area has it's own features and benefits, styles, location attributes. Find a great Schaumburg location that will fit your requirements!

Weathersfield - built in 1962 to 1978 and is one of Schaumburg's 'original' subdivisions. Mainly began with ranches but then multiplied it's styles to split levels, raised ranches, mid-levels and finally a 2-story colonial. Can either have a 1 car or 2 car garage depending on the lot sizes. Basements are rare here.

Weathersfield Homes

Sheffield Park - originally built in 1971 thru 1975 by Levitt Builders the original pioneers of the modern day subdivision. A larger variety of models than Weathersfield including split levels, raised ranches and 2-storied homes. Basements are rare in the area but were made available. 1 or 2 car garages depending on the model and lot sizes.

Sheffield Park Homes

Lancer Park - on the eastern portion of Schaumburg offering solid brick construction, concrete drives. Small floorplan selection offering more ranches and more often basements were opted for here. Detached garages also abound in this neighborhood.

Lancer Park Homes

No matter what your price range if your interested in the Schaumburg area, please give me a call. I have over 25 years experience in the area and I bet I've been in the subdivision that YOUR interested in!

If you're a seller interested in selling your Schaumburg Home, please give me a call so we can get you into your next home! I offer you a customized market plan where your home is the star!

My website is full of great buyer information, seller information, staging information and examples, community info, school stats and community benefits for anyone thinking of buying or selling from first timer to seasoned veteran!

Schaumburg Homes - Why pricing is more important than ever!
Short Sale Reform, Foreclosures and the naked guy
Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - Pricing is more important than ever!

Fri, 20 Jan 2012 12:54:43 -0500

Currently in the Schaumburg market with our elevated inventory you have to be ‘spot on’ with your homes price. Too high and no one will take your home seriously and it will be passed over. A fair price – what a seller is willing to accept and a buyer is willing to pay. That’s what we normally strive for.

For Schaumburg IL homes here are some enlightening statistics that I've found. Price your house right in the beginning and you'll make more money! It's true and here's what I've found from current sold sales.

Schaumburg homes that have sold and closed in 2011 sold at 95% of the asking price.

Where it becomes distressing is the 'old sales price to selling price'. That's another 6% off the original listing price. So homes that have sold in the Schaumburg IL area were 6% off their correct price and needed to be adjusted downward in order to sell.

Let's show you in dollars what that might mean:

$200,000 would be $12,000 too high!

$250,000 would be $15,000 too high!

$300,000 would be $18,000 too high!

Price your Schaumburg IL home as aggressively as you can and it will command a higher sales price than languishing on the market 'hoping' for that higher number.

Looking for an agent that's really a market expert? Let's get your Schaumburg IL home on the market and priced right to sell!

Staging is not Fraud!
Schaumburg - Average Home Prices over the last 10 years
Schaumburg - What type of financing did buyers use?
Northwest Suburban Real Estate Update - December 2011
Surviving the American Dream: The argument for 'Walking Away'
Schaumburg Homes - Is it better to rent or buy?
Foreclosure Surplus?

Sources: MRED MLS 2011

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Short Sale Reform, Foreclosures and the Naked Guy

Thu, 19 Jan 2012 15:44:49 -0500

I would like to welcome back my guest blogger and short sale attorney, Gary Lundeen for another plea to Congress for Short Sale Reform. Soon Fannie & Freddie will begin the 'great sell off' of foreclosures to investors & what impact will it have on the currently limping housing market?

I am sure we all agree that we need a national policy on Short Sale Reform but when will it begin? When will Congress start to listen? This is Gary's perspective on what should be done to an exasperating problem facing all of us in the real estate industry.

Short sales, Foreclosures and a naked guy - an interesting analogy!

The Lundeen Plan - Short Sale Reform - Installment Fourteen

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - How did the real estate market end up for 2011?

Wed, 18 Jan 2012 13:08:27 -0500

Positive Signs continue in our Schaumburg Real Estate Market for the last 9 months. We are moving ahead with recovery here and sales have successfully reached above the 2010 level of closings.

The December totals for Schaumburg Single Family Homes are now 16% above 2010 closings and Schaumburg Multi-Family are now down 6% over 2010. So our local market has totally flip flopped (again) between the single family and attached. Homes have taken an extreme slow down and the attached housing is selling steady and finished with a bang!

For Schaumburg there are still no price gains calculated with foreclosures still leading the way in current sales. What is promising is that in a few different surrounding communities the average sales prices are now going up.

If all goes well, our next trend is for prices to finally level off and slight increases to begin for Schaumburg. The average sales price was $256,800 for December and following the closings you can see that move-up buyers are beginning to find the market more friendly.

Another market condition which is important to consider is how much inventory we have going into winter and we currently are holding near 7 months supply (decreasing). We are at a dangerous teetering point here where we can continue to move ahead or have a stall out and slowdown that will continue through our winter.

My summary shows cautious growth and first time home buyers or investors have decided to jump in the market to snatch up all those townhouses and condos we've got. It's a good idea for investors as most sales prices will equal a positive cash flow. I've been in multiple offers for the low end price ranges.

Looking for an agent that knows this fluctuating market? Give me a call to discuss your Schaumburg housing situation and needs.

Search Schaumburg Homes
Search Schaumburg Townhomes

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

A Foreclosure Story ~ Hope You Will Love This Home as Much as We Did

Tue, 17 Jan 2012 18:14:00 -0500

We often forget about the human side of foreclosure. I rarely think about forclosed homes as once being full of life and family anymore. They have become 'routine', just part of the normal market that I see everyday. This is a great story sharing the human side of foreclosure that I hope you will enjoy.

It's a sad part of our job & makes me sometimes wonder 'who really lived here?' Thanks to Linda Humphrey in Nevada for sharing this story.

Via Linda Humphrey, M.D., Broker/Owner HHC Realty (Humphrey Home Connections Realty, Reno, Nevada):

No, this was not the parting sentiment from seller to buyer at a happy closing. It was wistfully painted above the front door, surrounded by an artistic vine of leaves and flowers, of a bank-owned property I showed to some first-time buyers. We didn't notice it until we were leaving, where it stopped us dead in our tracks. No one spoke for a long time as we resumed our places in the car for the ride to the next potential home.

Every day we Realtors are faced with the dregs of lives gone sadly wrong. Abandoned bedrooms gaily decorated with pink walls and frilly curtains, or perhaps sports-themed trim and a left behind poster of some kid's hero. Lines carefully marked inside a closet as a family's children grew. A forgotten toy left in the rush to vacate as the sheriff drove up the street. Wet, molding, laundry forgotten in the washing machine when the residents come home to discover the locks changed. People peering fearfully out as the REO agent comes to the door to offer cash for keys.

We (and by "we" I mean "I") spend a lot of time arguing the nuances of the "real estate crisis"...whose fault it was, who the winners and losers were, all the minutia of the hows, whys, wherefores of what happened. So much easier and less painful to deal with numbers and abstractions. But at the end of the day, it is the human story that is compelling. Yes, many of those folks likely made poor decisions. Yes, people should be responsible for their debts and promises. Yes, many who invested in those peoples' home loans (including financial institutions) have suffered at least as much; lost jobs, lost savings, huge losses in the value of the companies they work for.

But some days I just feel like coming home and crying.

Photo Credit: Left Behind by Michael | Ruiz from Flickr via Creative Commons License

___________________________________________________________________________________

Copyright © 2012 Linda S. Humphrey, all rights reserved

Linda S. Humphrey, M.D., CDPE, e-PRO, EcoBroker, GREEN

Broker/Owner - Humphrey Home Connections Realty, LLC

cell: 775-287-4665

office: 775-232-8515

www.HumphreyHomeConnections.com

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - Why the Conversion Rate Matters when selling your home!

Tue, 17 Jan 2012 15:59:08 -0500

Conversion Rate means?

Months Supply of Inventory says?

Why does this matter when you are selling your home?

Well, the 'Absorption Rate' is the real estate markets ability to absorb or sell all of the Schaumburg Homes for sale in a given amount of time. The ability for the Absorption Rate and market to either decline with many buyers in the marketplace OR to increase when buyers are few in numbers. Each month the number changes based on homes coming on the market, going under contract and then finally closing.

Is this a 'Buyers Market' or a 'Sellers Market'?

Currently, we are still in a 'Sellers Market' according to chart trends. Finally, our inventory of Schaumburg Homes is stabilizing and the lower the housing inventory, the better the market conditions are for sellers. Meaning that buyers will begin to compete for homes in certain price ranges. The economic principle of 'supply and demand'.

A 'Buyers Market' is just the opposite and what we have been experiencing for the last few years. Increased numbers of Schaumburg Homes on the market all competing for the same small pool of buyers creates a 'housing glut'.

With more competition in the marketplace, home prices are forced downward. Foreclosures also force prices in communities downward. The banks are often generating '30 day pricing' which means they want the house under contract in 30 days - period. What's the lowest price that will get the job done and get this house off the market! In the end it's good for buyers, not for sellers.

In a 'Buyers Market' it will take longer for your Schaumburg Home to sell because of the decreased amount of buyers. Time on the market is increased so sellers should plan accordingly for an extended market time. Each communities market time will be different.

Want to know the current market trends of your community? I can provide you with this added market perspective as it makes a difference on how your Schaumburg Home is marketed effectively. The 'Conversion Rate' shouldn't be kept a secret because it plays a pivotal role in your home selling strategy.

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Schaumburg Homes - What types of financing did buyers use?

Sat, 14 Jan 2012 19:30:31 -0500

Schaumburg IL Homes - What types of financing was used?

While compiling this year end report for 2011 the total sales in Schaumburg IL I noticed a few striking differences between Schaumburg single family homes and multi-family home sales.

Two completely different animals!

Depending on what type of property you have will figure into your buying or selling strategy. Types of financing that buyers use have different criteria and variables that sellers must pay attention too. On FHA purchases the home must have minimum standards to protect the buyer from unknown future mechanical breakdowns. When the appraisal is done on these properties the appraisers check the attic spaces, crawl spaces and any basement areas not readily available. This has never been done before but it's been a trend since the last half of 2010.

For foreclosures in Schaumburg, the furnace and water heater must be operational and the water must be turned on. This eliminates some foreclosures immediately that need serious help from either being vacant, lack of winterizing or seller damages. These poor homes must be bought with cash and then refinanced when the home meets lender standards. Frequently you'll be getting a dream deal but you'll be in for a boat load of work and you better know the business side of a hammer! These homes are usually not for the first time home buyer.

So with Schaumburg Homes the largest portion of sales has gone conventional financing.

If your Schaumburg Home needs a new roof, forget about FHA financing as this is also considered a mandatory requirement. Life expectancy of at least 5 years is required for all roofs.

With Schaumburg Multi-Family Homes the largest portion of sales was conventional andcold hard cash coming in neck and neck. Who says cash is dead? Well I'm sure it was me at one time as I can't remember meeting so many buyers with cash in their hands and at their disposal!

It clearly has to do with the price differential between the Schaumburg home and condo pricing. Many more condos are available below $150,000 than homes. Still most first time home buyers will be using the FHA financing method because of the lesser down payment required (3.5%). But, conventional financing (5% down is now available) might be better for you as the mortgage insurance premiums are lower and will not be for the entire 30 year life of the loan.

Another important note to remember is not all Schaumburg complexes or subdivisions are approved for FHA financing. This would include townhome styles, quads, manor homes, coach homes and a variety of others. Please see if the area you are interested in is FHA approved. Many a heart has been broken with a first time buyer when they realize the complex they love will not accommodate their FHA financing.

If you are thinking of buying a Schaumburg Home, please consider me as a 'buyers agent' for your purchase. An experienced veteran, like myself, can steer you through the 'mine field' on your way to your first or tenth home!

If you are researching this information to possibly sell your Schaumburg IL Home, please email or call to discuss the advantages of my marketing abilities and getting your home turned to 'SOLD'.

Source: MRED

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Northwest Suburban Real Estate Update - December 2011

Sat, 14 Jan 2012 12:14:24 -0500

Real Estate Market Update - Northwest Suburbs - December 2011

Well last month I reported that I felt the market was slowing down but I was still quite optimistic for the end of the year sales. At the final tally, we did well over the 2010 sales year. Sales are above those levels and I think we can't be stopped from going forward!

The graphs show that December sales have been up for most towns in our area. And even with the towns that came in under 2010 sales levels, I feel it's just a matter of time before the market shakes off the cob webs and gets back down to business.

Another good statistic is when the market is steady (or going up) with the number of homes that go under contract each month. Currently we are between 5 to 11.5%.

The inventory level (absorption rate) has also held steady but we've just really begun the winter months which has been a traditionally slower sales time. If the inventory increases going into the spring market, prices will surely decline.

I have now been including the highest sales prices for the month in single family homes. This is so we can begin to watch the 2nd tier home sales increase in their sales also. The market will always recover from the 'bottom up' with the lower sales prices showing the largest number of sales until the 2nd tier breaks free. This will be an indication that the 'move up' buyers have finally been able to take advantage of today's prices and the low interest rates.

Single Family Homes	December 2011 Total +/-	2011 YTD Total	% YOY Change	Avg. Sales Price 2011	Highest Sales Price
Bartlett	24 UP	272	+33.3%	$247,687	$247,687
Elk Grove Village	14 UP	133	-2.9%	$240,714	$545,000
Hanover Park	17 UP	179	+6.6%	$131,159	$230,000
Hoffman Estates	23 UP	243	-2%	$256,421	$442,500
Schaumburg	17 UP	249	+16.4%	$256,824	$378,000
Streamwood	29 UP	313	+21.8%	$146,708	$394,900

Multi-Family Homes	December 2011 YTD Total +/-	2011 YTD Total	% YOY Change	Avg. Sales Price 2011
Bartlett	15 UP	101	+32.9%	$151,324
Elk Grove Village	16 UP	165	+51.4%	$104,063
Hanover Park	16 UP	166	+9.9%	$79,036
Hoffman Estates	13 Even	180	+23.3%	$97,472
Schaumburg	44 UP	401	-6.1%	$117,028
Streamwood	11 Down	149	-9.2%	$111,621

Yes ... we are recovering here in our area for 9 months in a row. Month over month we have seen an increase in closings and year end sales increased over the dismal 2010. One of the reasons I show the 'month over month' totals is to show you we truly are having sales increases - it's not just sales hype!

The number of 'pendings' has also increased but you can't count on all of these making it to a successful close! Both housing types have equalized at years end with single family homes doing better at the beginning of the year.

Looking for an agent that's really a market expert? Let's get your Northwest Suburban home on the market and priced right to sell!

Is your current agent showing you any of this information? Do you feel your current agent is 'flying by the seat' of his pants when answering these questions?

Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.

Sources: MRED December Stats 2011

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Downsizing your Home? Baby Boomer's May Be In For a Surprise

Fri, 13 Jan 2012 15:52:21 -0500

Interesting perspective on how the 'Baby Boomers' are facing and reacting to the current housing trends. I don't think that they realize as a 'seller' they would no longer purchase their own home based on their current market likes/dislikes.

Enjoy this post from Valerie Zinger in Canada.

Via Valerie Zinger (House Proud Ottawa-Ontario-Canada):

This is a story that is being repeated all over the country. Boomers want to downsize. This is hardly a surprise. The surprise or even shock is that it is going to cost them money to live in less space. To some, it is so appalling that they have decided to stay in their current home.

Boomers own their home in the suburbs. Most are mortgage free. The home has four bedrooms, three baths, a family room, a rec room in the basement, two or three car garage and a huge yard full of trees and shrubs and maybe a pool. Okay, there may be variations of this but the essence is - the boomers own family friendly property. Now...... The kids have finished school and left the nest. The Boomers are rattling around a big house and find that they live in the kitchen - family room space and their bedroom. It seems that it is time to move to something smaller.

Here is the rub. The new home or condo may cost more than the proceeds from the sale of the big home in the suburbs. What?

The market has reacted to the demand for large condos and retirement homes by placing a premium on the sales price. Remember, the Boomers are a tidal wave moving through demographic data. If you, a Boomer, are thinking of downsizing then so are millions of your fellow 1946-1964 birthday buddies. Simple supply and demand economics at work.

Your lovely home is a wee bit tired. Forty plus years of the same kitchen, with the wrought iron railings, pink carpet, parquet flooring and paneled rec room is telling the story. Although you have house size you have a house waiting for updating and renovations. Your home is not competitive. It is not giving Buyers what they want in updates.

You want to move but you are certainly not going to settle for apples to apples. Your tastes are now refined and you want granite and a bungalow backing on a golf course with grounds keepers or the whole top floor of a condo in the downtown area. You are selling a MacIntosh apple to buy an organically grown Star Fruit. Would you be happy buying the little bungalow down the block from your current home with the need for the same updates as your current home? Would you be happy with the location? No?

After finding out that their home is not the gold mine that they hoped for, many potential Boomer Sellers make the decision to stay in their current home. In some cases, the Boomer will update the family home, adjust the buying expectations and make the move at a later time.

Photo Credit: UK Baby Boom and Bust by David Willets

Valerie Zinger

valeriezinger@gmail.com

613-859-7759

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Is your blog signature shooting you in the SEO foot?

Wed, 11 Jan 2012 12:05:33 -0500

Is your blog signature shooting you in the SEO foot?

Has anyone pondered this idea? We have all tried to get so fancy with our signature lines here on Active Rain that we might have forgot about a key event. Google scans your entire post from top to bottom. I suddenly remembered (a flash of brilliance?) that I used to have a typed out disclaimer line when they were first used here. I would get angry every time I saw Google indexing that disclaimer but not much of the post itself. Google I think was cheating & just reading the ending of the post.

So ..... we all changed our format back in the old days so Google would just cut it out. But ... has our footer literally shot ourselves in the foot?

Isn't it better to have our names constantly indexed?

I am going to change my signature line back from a 'picture or graphic' of my name & information to actual words to see what happens. I'll be the crash test dummy & let you know what I find out. People who have been here on Active Rain for a long time know what I mean by this so your input would be appreciated.

Just want to be sure that we get all the Google benefits that we can!

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

What 'My Peeps' find interesting!

Mon, 09 Jan 2012 15:38:31 -0500

Just completed looking over some posts from others here on AR on what the public & readership thought was interesting for 2011. It never ceases to amaze me what gets read & what doesn't. Let's call this 'The Peeps Awards for 2011'.

How about you? What have you noticed over the last year that you can share?

Last year I tried a few different series & two of them turned out to be popular real estate related subjects. Reading what others have done also gives me ideas for posts that I want to do in the future. Obviously there are subjects that interest consumers & should be added I believe to your blog & your website to attract visitors.

The last thing I included (but really didn't want to) was the discussions I tried to energize regarding NAR last year. Didn't make much difference as far as our dues were concerned but the topics were of interest & were always good for spirited debate.

Post by David Papoff Follow others in the comments section to see what results others are getting or to give you ideas for 2012.

Subject/Name	Views	Clicks
Home Seller Closing Costs - Schaumburg Homes - Lyn Sims (847)230-7324 RE/MAX Suburban	5519	2505
Tax Appeal Process - Cook County IL - Schaumburg Township - Schaumburg IL	4747	2637
Moving with Pets - Schaumburg IL Area in the Northwest Suburbs	4005	1864
Frank Lloyd Wright - Anything of his design on the market?	3900	1079
Down Payment Assistance - SmartMove for Illinois Buyers	1833	1124
Killing trees one contract at a time!	2730	1061
Staging is not Fraud!	1904	973
Lynnewood Hall - A golden part of an American Success Story	1742	659
Adding Readership with Email Subscriptions using Feedburner	2002	719
Side by Side Videos	3202	892


For or Against the NAR Dues Increase? You better speak up NOW!	2640	1158
NAR has lost their mind with the 'Home Ownership Matters' Bus Tour	3150	1617
National Assoc. of Realtors Town Hall Meeting Rebuttal	2901	825

Lyn Sims ● Schaumburg IL Area ● Northwest Chicago Suburbs ● (847)230-7324

Surviving The American Dream: The argument for 'Walking Away'

Sat, 07 Jan 2012 13:04:30 -0500

This would be only my 2nd discussion post on a very touchy subject in our housing market 'Strategic Default'. Every once in awhile someone comes up with good discussion on this subject & what it means to you as a homeowner financially. I don't think that the general public throughly understands what happened during the 'mortgage meltdown'. I suggest that you read up on the subject & make a decision on what is best for YOU and for your family if you home is currently underwater.

Should you? Could you? You will have to decide for yourself & for the financial future of your family. Enjoy this very thorough post from Bill Joyce.

If you have any further questions about Short Sales, Strategic Default or any part of the current market - please feel free to give me a call.

Via Bill Joyce (Better Home Less Money):

In Mike Coopers post on the 'Short Sale of Convenience' he touches on what I believe to be an important but controversial subject, strategic default (ending in either short sale or foreclosure). I was most surprised by the vast majority of comments concluding that anyone that can afford their mortgage payment on an underwater home should 'do the right thing', stay in the home and honor the commitment. Perhaps my views are in the minority, but the arguments against strategic default are based on perceptions of the legal, moral and ethical issues of what still appears to be a poorly understood subject.

Is it OK to 'Walk Away'?

Is it ok to walk away (short sale or foreclosure)? ie; deliberately default on an underwater home without a financial hardship? While some would argue that owning a grossly underwater home is a hardship, and I would agree, I am referring to an owner/borrowers that can afford the home at the existing mortgage payment.

I used to feel that borrowers had the legal and ethical responsibility to honor the debt. It was your choice to buy a home and borrow the money, you made the commitment to others, you received the benefit and therefore you have the legal, moral and ethical responsibility to repay. Actually, I still feel this way under normal circumstances. I believe there are moral and ethical implications of a promise to repay a debt.

That said, however, I believe that the circumstances of the current mortgage crisis were not legal, moral or ethical to begin with. After a great deal of research about the causes of the mortgage meltdown, I have come to the conclusion that qualified borrowers that purchased during the boom were victims of massive abuses by investment banks in the mortgage and real estate markets. Trillions of dollars were lent to unqualified borrowers because the debt could be packaged and sold as a triple A security to investors worldwide. The reason lending standards were lowered so drastically was to create more debt. It didn't have to be repaid, just last long enough so it could be quickly packaged and sold to unsuspecting investors. In fact, some of these same investment banks would then purchase Credit Default Swaps from AIG FP and profit again upon the failure of the security they had just sold as the ultimate in safety. Pension and retirement funds, as well as private investors around the world having faith in the US ratings agencies and stability of the US mortgage and housing markets, purchased trillions of dollars in subprime Mortgage Backed Securities and Collateralized Debt Obligations (CDO's). They were lead to believe that these were investment grade securities backed by the relatively stable US housing market. With T-Bills paying 1%, investors were desperately searching for investments with higher yields that could outpace inflation.

Wall St. Magic: Turning Subprime Loans into a Triple A Security

Wall St. had discovered a modern alchemy by putting a veil around subprime loans and getting them rated Triple A. Lead could truly be sold as gold. However, they needed more lead, so the bar to qualify for a loan was lowered drastically. As a result of these 'fog a mirror' lending standards, genuine, qualified borrowers were forced to compete for homes with borrowers that would never be able to repay loans. With an abundance of money in the mortgage market and a mushrooming population of artificial homebuyers, prices naturally skyrocketed. It was a false and unsustainable housing economy.

The more conservative among us would argue that Federal policies on affordable housing pressured banks into making bad loans as the source of the problem. There were clearly pressures and expectations by bank regulators to promote certain, more speculative categories of loans. In my opinion, while this compounded the problem, it was more of a plausible distraction to the greater abuse by investment banks. The governments involvement made the increased availability of mortgage credit less suspicious and the rapid expansion of the housing market a credible event.

Regardless of whether you prefer to blame Wall St. or Washington for lending to people that could never repay, the housing collapse was not a result of responsible borrowers that simply bought a home at the wrong time. It was deliberate fraud and reckless abuse of a treasured American institution. Our industry, and in fact our entire economy, will take many years to recover from the damage that has been created. Many, homeowners will not recover financially in their lifetimes. The SEC complaint for Fraud against former Fannie Mae and Freddie Mac executives is hopefully just the beginning. I believe there should and will be more civil complaints as well as criminal indictments.

So, what should we expect as legally, morally and ethically appropriate from a homeowner that purchased a home under legally, morally and ethically corrupt circumstances?

Sacramento has thousands of families still trying to do the 'right thing' in homes that are $100k to $200k underwater. In my opinion, these owners need to do the math and really understand the financial impact of their decision to stay or leave. It is a decision with serious consequences... a choice between bad and worse.

For instance, an Elk Grove homeowner that bought a home in 2006 for $500,000 that is now worth less than $300,000 and still owes about $450,000 will be financially worse off by about $400k to $500k over a twenty year horizon if they choose to 'do the right thing' by traditional standards. This amount of money will change the character of their lives, their children’s education and their retirement. Is it reasonable to expect millions of Americans to sacrifice to this degree when the creation of the debt was under questionable circumstances? I think it's time to reevaluate what 'the right thing' to do is.

It's Time To Examine What Really Happened

I'm surprised so many in the real estate and financial services industries are so indignant about homeowners walking away. How much remorse and contrition should we expect from a homeowner that has been robbed because they had faith in the American Dream of home ownership and the financial and government institutions that make it possible? We played a role in this fiasco. I think we owe the clients we serve a better understanding of what happened and help them face a bitter financial reality. In my opinion, this wasn't done by the homeowner; rather this was done TO the homeowner... and the taxpayer, and millions of investors all of whom simply had too much faith in the system.

For anyone unfamiliar with the underlying causes of the mortgage and housing situation, I would recommend "All The Devils Are Here", "The End of Wall St.", "The Big Short" and the documentary "Inside Job".

While I am not trying to release anyone from their role in the housing collapse, including Realtors, Mortgage Brokers and the homeowner, I would say any homeowner that has stuck it out this long, overpaying for housing this many years, has demonstrated a more than reasonable commitment to honor the debt. In the final analysis, it’s time for us all to look deeper into the root cause and hold the real culprits accountable.

Bill Joyce

Broker

DRE #01419060

www.SacramentoBill.com

www.Sacramento-Home-Search.com

www.BetterHomeLessMoney.com