Lender Basics: Six Frequently Asked Questions - #3 - 08/30/08 09:38 AM
Here is another FAQ about lenders.
3.  Why do credit scores vary?  And what do lenders like?
The three major credit bureaus are:  Experian, Equifax and TransUnion.  Credit scores will vary from bureau to bureau because each bureau puts different emphasis on different factors. Credit scores are calculated using a scorecard that allocates points for each of the above factors; however, lenders do not get to see the entire scorecard, all they see are the final scores.  FICO scores can range from 300-850.  Here's how lenders typically react to FICO scores:
  
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Lender Basics: Six Frequently Asked Questions - #2 - 08/29/08 08:02 AM
Here is another FAQ about lenders.
2.  When dealing with borrowers, what concerns lenders the most?
When dealing with borrowers, lenders' main concern is risk.  Lenders proactively manage these risks by requiring four things from a borrower:
  A.  Down Payment - statistics have proven that borrowers who put down 10% or more unlikely to default on a loan.
  B.  Excellent Debt to Income Ratios - borrowers with high debt and low income are a high risk because they are using too much of their income to pay their current debt; e.g. credit card debt, car loans, and so on.  … (0 comments)

Lender Basics: Six Frequently Asked Questions - #1 - 08/28/08 07:00 AM
Here and in following posts are FAQs about lenders.  I hope they are helpful.
1.  What's the difference between pre-qualification and pre-approval?
Pre-qualification is a simple process. The buyer is asked specific questions about their income, assets and liabilities.  Based on this information, they are provided with an amount for which they may qualify. This process can be done strictly on a verbal level or electronically over the Internet. On the other hand, the pre-approval process is much more involved.  The borrower will provide proof of income, assets and liabilities and this information will be verified by the lender.  Because of … (0 comments)

Deciphering the Listing sheet: All That Glitters Is Not Gold – #7: 2-to4-flats - 08/27/08 08:09 AM
What to Watch For, with 2- to 4-flats:
In general, be aware that it is very easy to make a multi-unit building sound good on paper-we always recommend drive-by's before setting up showings!!!  Secondly, watch for estimates of rent; (if there is no lease date or security deposit listed, any rent listed is probably just an estimate). Finally, be sure to watch out for illegal units (e.g., 3 units described on a 2-flat listing sheet); you may still want to buy it but should have your eyes wide open.
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Deciphering the Listing sheet: All That Glitters Is Not Gold – 6 condos - 08/26/08 08:14 AM
What to Watch For, with condos:
A gut-rehab should mean that everything is new, including the kitchen and bath. Walls and room sizes may have been adjusted to allow for a second bath, in-unit laundry, new heat/AC, etc. The price may be higher, but-theoretically-everything from the mechanicals to the finishes is brand new and wonderful.
A mid-level conversion describes a project where some amount of updating did occur but less than a full gut rehab. Mid-level conversions are lower in price and often have a VINTAGE look- perhaps ideal if on a tight budget and in the property inspection we can … (0 comments)

Deciphering the Listing sheet: All That Glitters Is Not Gold – 5 - 08/25/08 10:22 AM
What to Watch For, with all properties:
4.  "Updating needed" or "As Is" or "Needs Decorating" or "Lots of Potential" almost always means that a LOT of work is needed. ‘Move-in ready', on the other hand, often means a little work is needed.
A special point for condos to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Deciphering the Listing sheet: All That Glitters Is Not Gold – 4 - 08/23/08 10:01 AM
What to Watch For, with all properties:
3.  Some listing sheets are heavy with FACTS (like hardwood floors, cabinet kitchen, tall ceilings, etc). "Lots of light" might make a listing sheet sound great and mask the fact that NO updating has been done. A cabinet kitchen might be 30 years old or more; hardwood floors 100!
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Deciphering the Listing sheet: All That Glitters Is Not Gold – 3 - 08/22/08 06:31 AM
What to Watch For, with all properties:
2.  ‘Mechanicals' (roof, windows, heating, electric, plumbing, etc.) are important, especially for single-family homes and multi-units. If NO mention is made, unless the sheet says a gut rehab was done, you should assume they are OLD (a listing sheet won't say "old roof," but if it says nothing, don't expect a new one).
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Deciphering the Listing sheet: All That Glitters Is Not Gold -- 2 - 08/21/08 02:28 PM
What to Watch For, with all properties:
1.  You'll see the terms: ‘new', ‘newer', and ‘updated'? What's the difference? ‘Newer' and ‘updated' are NOT new! A newer kitchen may be 7-10 years old. Put a new countertop in an old kitchen and it's been updated. Sometimes the terms ‘rehabbed' or ‘Gut rehab' are misused, but at least theoretically they should mean that everything is new.
More to come tomorrow.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Deciphering the Listing sheet: All That Glitters Is Not Gold -- 1 - 08/20/08 10:08 AM
We'll set you up with all listings that fit your price, size and neighborhood goals-and ask you to pick which properties to go visit. But therein lies a dilemma... how will you know which ones to prioritize on? It's important to understand both what the listing sheets DO say and DON'T say in order to take, say, 50 listings down to perhaps 20 to drive by and then the 10-12 best to see.
We will follow with some "What to Watch For" guidelines.
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Five Principles in picking listings to see – Conclusion - 08/19/08 07:21 AM
As a rule, once we've seen the best 10-12 of the current listings, you now have to wait for new listings as they come out. You should expect 1 in 5 to be a so great a value in terms of price it's likely to disappear from the market almost as fast as it came on. In other words, to ‘play' the new listing game, you must be prepared to move unbelievably quickly. Agility and quick decisions are the critical elements to success here.
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Five Principles in picking listings to see – #5 - 08/18/08 10:44 AM
5.  The Law of the Bell-Shaped Curve. When we set you up with listings, we will show you how to interpret them and encourage you to drive by them to pre-select the right ones to go visit. Picture that your job is to narrow 50 possible places to visit down to the 10-12 best. Our job is then to go see them together. This can go quickly! If we see 4 properties per trip, we can cover 12 properties in 3 trips. In fact, it happens often that we find the right property in the first batch seen. Other times, we … (0 comments)

Five Principles in picking listings to see – #4 - 08/16/08 08:10 AM
4.  The Law of the Good, The Bad, And The Ugly: Expect 20% of the listings to be good, 60% bad or okay, and 20% outright ugly. With those proportions in mind, 50 becomes a magic number: If 50 possible listings fit your criteria, you should expect to find ten good properties worth seeing, probably two of which are great and worthy of a bid.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Five Principles in picking listings to see – #3 - 08/15/08 08:53 AM
3.  The Rule Of 2 Goods And A Great: Property, price, and location-TWO of the three must be good and ONE must be great for a property to be a winner.
•·         Don't ever buy if one of the factors is bad or all are just okay.
•·         On the other hand, you can't expect ALL to be great...
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
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Five Principles in picking listings to see – #2 - 08/14/08 07:43 AM
2.  The Barrel Rule: Rarely, if ever, does it make sense to scrape the bottom of the barrel in a neighborhood. Most people have a choice in neighborhoods-we always recommend staying away from neighborhoods where all you can do is scrape the bottom of the barrel:
•·         The bottom 10% or so of the listings will probably all be bad (very small, a bad property, a bad location, or with some other problem).
•·         If possible, we recommend focusing on neighborhoods where your price and that neighborhood's price better fit...
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Five Principles in picking listings to see – #1 - 08/13/08 08:16 AM
1.  The FIRST law in real estate: Big and cheap NEVER equals wonderful. Many people, when they first start picking property to see, focus on properties that are big and cheap... They are hoping, of course, for big, cheap AND wonderful, but that is like winning the lottery-and never applies to properties that have been on the market for any length of time.
•·         BIG, wonderful, and very expensive can be found anywhere.
•·         SMALL, cheap and wonderful is another option to consider...
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Why ‘hire’ a Buyer’s Agent? Reason #2 of 2 - 08/12/08 10:21 AM
When a client agrees to work exclusively through me in their next purchase of real estate, they are, in essence, ‘hiring' me. But that doesn't mean it costs them anything. If the property they buy is in the MLS or is a "FSBO" (For Sale By Owner) that pays a Buyer's Agent commission, I only get paid if the client buys-and then 100% of what I get paid comes from the seller. And what I offer in exchange is, I think, important. Here is the second reason:
2. A superior Property Search system
Property searching is another example of the advantage … (0 comments)

Why ‘hire’ a Buyer’s Agent? Reason #1 of 2 - 08/11/08 06:33 AM
When a client agrees to work exclusively through me in their next purchase of real estate, they are, in essence, ‘hiring' me. But that doesn't mean it costs them anything. If the property they buy is in the MLS or is a "FSBO" (For Sale By Owner) that pays a Buyer's Agent commission, I only get paid if the client buys-and then 100% of what I get paid comes from the seller. And what I offer in exchange is, I think, important. Here is the first reason:
1. Total support
A National Association of Realtors® "Profile of Home Buyers and Sellers" … (0 comments)

Buyer-Agent Working Agreements #7 - 08/09/08 11:07 AM
Termination: Should the agent not perform the services you expect, at any time you are entitled to terminate this agreement, but you must present in person a written notice to the team leader of the agent's office with reasons for termination. If a retainer was paid, you may be eligible for a partial refund. A termination, however, will not release you from the terms of the agreement for any property you viewed while this agreement was in effect.
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Buyer-Agent Working Agreements #6 - 08/08/08 07:04 AM
Practical Guidelines. If you are choosing one of the exclusive options, you may still visit open houses on your own, but always state "Yes" to the question, "Do you have an agent?" and then show or give my card. As for private showings, these must be arranged through your contracted agent or there will be confusion as to who your agent is.
Other information will be posted in the following days.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
… (0 comments)

Buyer-Agent Working Agreements #5 - 08/07/08 08:40 AM
•·        Exclusive Buyer on Retainer Agreement. This is an Exclusive Buyer agreement as previously described but with the addition of a retainer paid up front. You will get 100% of the retainer back at closing if within a specified period you buy property through this agent, but you lose the retainer if you don't. This option is not common, but some searches warrant this level of commitment.If applicable, amount of retainer: $____ with time limit for purchase: ______.
Another Option and other information will be posted in the following days.
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Buyer-Agent Working Agreements #4 - 08/06/08 08:23 AM
•·        Exclusive Buyer Agreement. This is like the Exclusive Agency agreement except that the agent is entitled to compensation on any purchase you make-even if you buy a "For Sale by Owner" on your own. This level of agreement normally applies if you are a first-time buyer or for whatever reason need or want a large amount of support.
Other Options and information will be posted in the following days.
Visit our website to read more about Chicago multi-family homes.  Click here if you are interested in selling or buying multi-units with two or more flats.
… (0 comments)

Buyer-Agent Working Agreements #3 - 08/05/08 09:04 AM
•·        Exclusive Agency Agreement. Here you agree to only work with one agent. In this option, you may pursue "For Sale by Owner" properties as long as no other agent represents you. Should, however, you violate this agreement and you purchase property for which another agent gets compensated, the contracted agent will be entitled to receive from you the same compensation as the other agent. Why agree to this? If you choose an Exclusive Agent, they in turn promise to work much harder for you than they would in an Open Buyer agreement.
Other Options and information will be posted in … (2 comments)

Buyer-Agent Working Agreements #3 - 08/04/08 09:28 AM
•·        Exclusive Agency Agreement. Here you agree to only work with one agent. In this option, you may pursue "For Sale by Owner" properties as long as no other agent represents you. Should, however, you violate this agreement and you purchase property for which another agent gets compensated, the contracted agent will be entitled to receive from you the same compensation as the other agent. Why agree to this? If you choose an Exclusive Agent, they in turn promise to work much harder for you than they would in an Open Buyer agreement.
Other Options and information will be posted in … (0 comments)

Buyer-Agent Working Agreements #2 - 08/02/08 10:20 AM
•·        Open Buyer Agreement. This is the least restrictive agreement that you can have with a Real Estate agent. You have the right to work with as many agents as you wish and to pursue "For Sale by Owner" situations on your own. An agent will receive compensation on a purchase you make only if they are the Buyer's Agent for the contract you sign. While this option gives you greatest freedom, it also brings the lowest level of service on the part of the agents you work with.
Other Options and information will be posted in the following days.
Visit … (0 comments)

Buyer-Agent Working Agreements #1 - 08/01/08 05:51 PM
These are the kinds of agreements (formally called an Expressed Buyer Agency Agreement) on how ‘you' as the buyer and an agent will work together in the purchase of the property you desire. There are four options, and the choice you make will affect (1) how much freedom you as buyer will have in your property search, (2) how the agent will be compensated, and (3) the level of service you are entitled to.
The Options and other information will be posted in the following days.
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