Schaumburg Short Sales - Schaumburg Real Estate

The most common question I receive nowadays is what is a Short Sale? There are many Schaumburg short sales homes for sale. The long and the short (no pun intended) of a short sale is that they are a huge pain in the neck. The easiest way to break down a short sale is let’s say you owe me $100. You say Aaron I want to give $50 instead of $100 and it will take me six months decided and I may come back and say no.

Basically a short sale is when the bank is taking less than what is owed on a home. That is the good part. The true problem comes in to play when you submit your offer. You have absolutely no idea what amount of money the bank is looking for. You would assume that the bank would like to get the homes off of the books as soon as possible. The truth is that Johnny pencil pusher sitting behind the desk at the bank could care less about the deal at all. There is no rhyme or reason when it comes to negotiating a short sale. You very likely will not hear back from any for at least 4 months (I’ve seen some that have take 13 months, and some that have never received a counter offer).  There is also a chance that even if your offer is submitted at list price the bank will say they want more. 

So the moral of the story on short sales is that they make no logical sense and it’s almost impossible to pinpoint what if anything will happen. I highly recommend short sales for investor in the Schaumburg Real Estate market. If you are a regular buyer with any time frame or emotional attachment I recommend going for a regular Schaumburg home for sale.

Let’s say you are one of the brave ones that wants to give a short sale a try here are a few thing to look for.

1.)   The listing agent has experience with short sales

2.)   They have a professional negotiator working with the bank

3.)   How many loans are on the home. It’s much more difficult if there is more than one bank.

4.)   Which bank has the loan? Wells Fargo, Chase, and Bank of America are VERY hard to work with.

5.)   How far along is the short sale process

6.)   Are there any liens or taxes owed on the home?

Short Sales are a great way to good an amazing value on a home but, also a great way to spin your wheels and go nowhere fast. If you do decide to buy a Schaumburg Short Sale home prepare yourself for the ride. Happy home hunting!!!

What is Shadow Inventory and How Does it Effect the Real Estate Market

The term "Shadow Inventory" may be new to you, but you will hear it more and more over the next several months and years.  This term refers to the homes that are not on the market yet, but are destined to be for sale next year or the year after.  These are homes that banks will be foreclosing and placing for sale in the future. 

This "Shadow Inventory" is also a prime reason that many buyers are holding off, not buying at this time. Since homes that are yet to be placed for sale are a major factor affecting our real estate woes, it seems prospective home buyers should be aware of all the facts... Lawrence Yun, chief economist at the National Association of Realtors says "To be sure, the housing market is faring better in several metro areas, particularly those with decent job growth such as parts of Illinois and Washington, D.C., though it could be "choppy at times."

You probably already know where I am going with this... By parts of Illinois, he means "THE CHICAGO AND SCHAUMBURG REAL ESTATE MARKET"!

For the last 24 months I have been hearing so much about the next wave of foreclosures coming on the market and there have been quite a few that have come up. Yes foreclosure homes are a great value but are the always worth the headache? There are many things you should know before purchasing a foreclosed home.

1.)   You are purchasing the home as is where is. Which means all liens and problems with the home can become your responsibility.

2.)   They may need some work. Very few foreclosed homes are in great shape. Typically you will need about 10% of the purchase price to do repairs on the home.

3.)    The home may not be in as a great shape when you close as when you first saw it. The home will remain vacant and who knows what can happen to a vacant home in 90 days.

4.)    You are dealing with a corporation not a regular seller. Everything about the deal is about money there is no emotion and the bank will walk if the deal is not perfect.

5.)    Financing may be an issue. Fha loans require a certain in-habitability standard. If they home is not inhabitable for example: mold or no furnace, odds are you cannot get financing.

So before you purchase a foreclosed Schaumburg home, make sure you know exactly what you are getting into. Feel free to search all foreclosed homes on my website at http://www.aaronwittenstein.com/mx/Foreclosure/index.cfm?

When is the Right Time to Purchase a Home?

With the uncertainty of the economy, it is completely understandable to be afraid to take that next step towards purchasing a Schaumburg home. But, the real question is what are you really afraid of? From experience it’s one of three things most people are either are nervous about the economy, don’t think they have enough money for a down payment, or are waiting for the market to hit rock bottom. If you are unsure about your job or finances PLEASE WAIT TO PURCHASE A HOME. Just because the market time is right to purchase, it doesn’t mean the time is right for you. If you are scared about a down payment nowadays all you need is 3.5% of the purchase price to put down on a FHA loan. But, if you are waiting for the market to hit bottom ask yourself… When do we know when the market is at the bottom? Prices begin to go up!  

So you have to really ask your self is the right time to purchase? If that answer is yes you are about to enter the greatest Schaumburg Real Estate market to purchase a home and obtain a great value. If you are going to purchase a home just make sure you go through the process properly and find someone to help guide you through the number crunching process.

The main reason that we are having the economic problems is that home buyers got into mortgages they simply could not afford. Remember the home price means nothing if the payment is not comfortable. So you first want to be in contact with a mortgage professional that can get you preapproved. It is a fairly easy process. With some basic information about your income, debts, credit score, and job history you can get a working idea of what your numbers look like. Most people think it is hard to obtain a mortgage. That is not the case. People are able to obtain a mortgage that should be able to obtain a mortgage. If you have a credit score of 620, have 3.5 percent to put down, make a decent salary, and have a good debt to income ratio, odds are you can purchase a home. 

If you want to find out if you can buy a home Feel free to click below to fill out a short mortgage application http://www.aaronwittenstein.com/custom3.shtml. Jason Spock with Woodfield planning will be in touch with you to talk about your numbers. Don’t be unnecessarily nervous to take the next step. Just take the time to gather some information and find out what’s best for you.

For more information visit www.AaronWittenstein.com

Real Estate Shortage within the next 18 months!!!

Seems a little far fetched doesn't it. But, if you look at the numbers it makes a little more sense. Currently the average buyer is at the age of 30. There are 80 million echo boomers (people between the ages of 18-31) that will be entering the real estate market within the next few years. That's a potential of 80 million new buyers.

Currently many people are under water on their home and simply cannot sell if they wanted to. New construction has almost come to a full stop since the peak of the market. Also, now people live longer than they used to, so odds are they will be staying in their homes longer.

With all these new buyers and the lack of inventory all signs point to a shortage. It simple economics, the law of supply and demand! With the way the current Schaumburg Real Estate market is you can pick the home of your dream at a cheap price, with low rates, and take your time doing it. It a little more time you may not have the luxury. Do you really want to have to pick your second choice because you waited too long? 

We are in a very unique market that no one has ever seen before. The fact is even though the Schaumburg Real Estate market will see a shortage prices will most likely not go up. It sounds a little weird doesn’t it? Once again we are in a very unique Schaumburg Real Estate market and there is a very good explanation. We are still in a slow economic period, people are scared about their jobs and wages are going down. Some people that used to make 200k per year are taking less of salary so they can have a job. 

As of now the Schaumburg Real Estate market has not quite begun to pick up so it is still an amazing time to get a great home at even better price. Do you ever remember hearing your parents or grandparents say I remember when I could have had that home for 50 thousand dollars back in 1947. Do you want to be the one saying that or do you want to say I bought that home for 200 thousand dollars and it’s now worth double. Now is the time to be doing that! All sign point to this being the greatest opportunity to purchase a home ever!!! Don’t be reactive be proactive. If you have any questions feel free to contact me at 847-477-9474 or visit my website at www.AaronWittenstein.com

Rent Vs Buy

The age old questions should I rent or purchase a home. It really comes down to home comfortable you feel in to make this huge step in your life. Remember you don’t spend 100, 200, or 500 thousand dollars every day and you want to make sure that it feels right. 

All logic says that in this real estate market, especially with Schaumburg homes being at record lows, interest rates lower than ever, and massive amounts of inventory every it’s an easy yes. But, what you really need to do is sit back and evaluate your personal situation. Just because it is the right time to purchase a home does not mean it is the right time for you to purchase a home.

Start first by calculating how much rent is vs. how much your mortgage would be. It is amazing with homes prices and mortgage rates being so low and rental rates being so high it would shock you to see that some Schaumburg homes for sale may actually be cheaper to purchase than rent.  The rental market is almost 15 percent higher that it was the same time two years ago.  Also you need to look at the tax deductions you will get when you purchase a Schaumburg home. Did you know that you can write off all the interest on your loan? Talk to your account to see how much that can save you in taxes per year.  The main concern is do you want to make the commitment? Purchasing a home weather it’s a regular sale, short sale, or foreclosure is an investment that you need to be ready for. I strongly adivse against purchasing a Schaumburg home if you do not want to commit to staying put in an area, or if you are unsure about your own personal situation. 

As you see there a quite a few factors that come into play when making this type of decision. First you should consult a mortgage professional to get an idea of what your numbers will look like. Many people think they can’t get a loan. When in fact people can get loans that should be getting loans! If you  make a solid income, don’t have a ton of debt, can put down at least 3.5 percent, and have a credit score above 620 you may be better off than you think. If you have any questions about purchasing a Schaumburg home feel free to call me at 847-477-9474 or go to my website www.AaronWittenstein.com

HOME SALES UP FROM LAST YEAR

A little bit of positive Schaumburg Real Estate news. Even though home prices may be down the number of home sales are up in Schaumburg and over all of the Chicagoland Area. That’s a point not to be overlooked: Homes are still selling, and in fact this year they sold in larger numbers than last year. In the Chicagoland area, 77,792 homes were sold from July 1, 2009, to June 30, 2010, according to Midwest Real Estate Data (MRED). That’s a 29 percent increase from last year. Each one of those sales potentially provides a small boost to the sputtering economic recovery, with other home related purchases such as new appliances, furniture, and other home furnishings.

And who could blame a home buyer for splurging a bit on extras for the home when the house itself came at such an attractive price? Low prices in Schaumburg and other area and low mortgage rates have made this a fantastic year for buyers-that is. With money being so cheap your dollar will spread much further than years past. With mortgage rates as low as 4.25 percent, home prices low, and many homes to chose from you can exactly what you want at a great price. Now is a great time to get it all price, condition, quality and location.

If you are looking to get a deal on Schaumburg Real Estate or any other areas the winter may be the best time to do it. Generally in the winter people are more focused on purchasing presents than real estate. Typically sellers on the market are motivated to sell and banks want to get their inventory off the books before the end of the year. All of these signs point to you the buyer being able to get a great value on a home. So if you are really in the home market to get a good deal, you should really think about moving when it gets a little colder out because you can take advantage of a time that most people will not. What a better present to buy yourself and your family than a “home for the holidays”. And with the low prices and mortgage rates you may have enough extra cash over to buy some presents.

If you have want to search for all homes in the MLS fee free to go to www.AaronWittenstein.com. There are plenty of regular sales, foreclosure homes and short sales. Now is the time to purchase don’t let this opportunity pass you by.

What is a Short Sale?

A short sale is a sale of real estate in which the sale profits fall short of the balance owed on the property's loan. This occurs when a home owner cannot pay the mortgage loan on their property, but the bank decides that selling the property at a moderate loss is better than pressing the borrower for the full home value. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poor credit report outcomes for the borrowers. This agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan.

Purchasing a foreclosure or a short sale home can mean that you get a deal under market value.  This does not mean that the home will be in tip top shape and can result in homes that need work.  Distressed homeowners typically do not have extra money to maintain the home that they have lived in for years which can lead to costly repairs for the buyer.  Make sure to always have the home professionally inspected before purchasing a home of this nature to ensure that all disclosures for repairs are made.

With the economy constantly changing foreclosures and short sales are becoming more available to home buyers.  It is always within the interest of the buyer to have a Realtor working on their behalf.  The Schaumburg, Illinois housing market is a buyers market and sellers are willing to make deals to get property sold.   

Whether you are looking to purchase a home or sell a home work with a top Realtor in Schaumburg to get the job done.

What a Foreclosure Can Do For You

Ok so lets face it, if you are looking to purchase a home buying a foreclosure can help you save money.  Purchasing a foreclosed home can get you more home for each dollar that you spend.  When the market fluctuates as much as it has in the past 5 years no one wants to pay for an over priced house.  In the past people have destroyed their home before the bank took it over devaluing the property.  This is no longer a common occurrence as it once was because banks are paying people to leave the property as is.  This leaves an opportunity for home buyers.

Foreclosed homes are coming to the market in better than ever condition.  You may even be able to find an updated home that is in good condition under market value.  It is always advised to search the MLS for foreclosures before looking at the regular listings.  Foreclosed homes sell faster because they are under market value.  It is becoming harder and harder to flip property to make money, so investors are flocking to the foreclosure listings.  Act fast when purchasing a foreclosure because offers roll in. 

Get the foreclosure home inspected.  It is always advised to get a home inspected before purchasing it and this is especially true when putting in an offer on a foreclosed listing.  You want to make sure that any problem is disclosed before making your purchase.  Banks rarely inspect the home thoroughly because they have a large amount of foreclosures and do not want to spend any more money than they have already lost. 

SEARCH FORECLOSURE LISTINGS NOW

Always remember that the word "foreclosure" always perks buyers up because they think that they are getting a deal.  If you choose to purchase a foreclosed home just to fix it up and resell it be sure that you have enough cash to allow it to sit on the market for a few months when re-listing it.  The home will no longer be classified as a foreclosure home for sale and will be listed as a regular listing.  If priced right it will sell fast however there are more homes for sale currently than buyers.  Make sure that your home is priced a little less than others so that it sells faster.

Tips to Make Your Home Sell Faster

Need your home sold faster?  Follow these steps:

1. Put the clutter away -  If you have a built up of clutter or a room that you just throw everything into it is wise to rent a storage unit to make your home look more spacious.  It may cost $100 per month but that is nothing compared to how much more open your home will feel to potential buyers.  Since you have to pack it away anyways you might as well do it now so that it will benefit the sale of your home.

2. Neutralize and Depersonalize - If you have a bright red bathroom you may want to consider painting it a neutral color.  Potential buyers may frown upon rooms that are loud because they will know that they have to put more work into the home once they purchase it.  Assume people are lazy and do this yourself.  It will make your home sell faster.  Depersonalize your home by putting away family pictures and awards etc.  This will also help declutter your home.  Put up neutral paintings in their place.

3. Get Your Home Inspected - This will help ease the mind of potential buyers if this report is on the kitchen table as they look through your home.  It shows that you have done your homework and there are no hidden surprised with them making you an offer.  They will know the home condition upfront. Buyers like honest sellers.

4. Stage Each Room - Dont "repurpose" any room.  Arrange your furniture so that each room shines to its best potential.  Make sure that the sofa does not block the fireplace etc. 

5. Clean Your Floors - Get your carpets steamed cleaned and buff the hardwood floors if they are in bad condition.  This makes the house look kept and clean.  It will give the home a better look overall and appear cared for.  If you have dirty floors buyers are going to nit pick at everything else because they will think you have not taken care of the place.

Another thing you want to make sure that you do is price your home right.  Consult your realtor to help understand market trends and listen to their recommendation.  Using a real estate agent that can sell sell sell will give you the best advice.  If you are in the Schaumburg, Illinois area we recommend using www.AaronWittenstein.com. He has a proved track record and can market your home using the most advanced technology available.

I Need My House Sold Fast

Are you in a financial bind and need your home sold fast?  Many people get stuck selling their home in a short sale to avoid foreclosure.  Losing your job or getting into a financial bind is becoming more and more common.  People who never would have thought they would be in this position are being forced into a corner. 

The solution: putting your home on the market as fast as possible to get the most value out of it will get you farther than waiting for your financial situation to get better.  Listing your home with a real estate agent rather than trying to sell it on your own will also get your home sold faster.  Pricing it according to market value or a little bit under will attract the right buyer. 

 Does Craigslist really work getting my home sold?  The answer varies from state to state and depends on the amount of web traffic the real estate section of craigslist is receiving.  Looking for a real estate agent that presents their listings in a professional manor on Craigslist will help bring in more buyers than an open house ever will.  Using a real estate agent that is up to date on technology is something that most buyers do not look for.  They look for someone who has a lot of listings because they appear to be doing a large amount of business.  This can be deceiving.  Do research and look on Craigslist for a realtor that knows what they are doing when it comes to the marketing of your home for sale.

What to look for in a realtor

Most people are under the assumption that listing their home with an experienced realtor is the way to go.  This is normally a wise decision, however with the market fluctuating and technology progressing, the way a home is marketed is changing.  20 years ago we didnt have the internet to rely on and went to a realtor to access listings.  Companies like "Buy Owner" pop up which charges one fee to list your home on the MLS without the assistance of a Realtor.  Many have had success saving money this way when going to sell their home.

There are many cases however, where people have their home listed on the MLS and it doesn't sell.  In fact no one even comes to look at it after its been on the market for months at a time.  Marketing the sale of your home is more complicated than ever now that every listing is on the internet.  Having a young Realtor who knows how to market your home on the internet can be more effective than using a more experienced Realtor that is not as up to date on technology.

 Before the internet, real estate agents held open houses to get buyers to look at the property for sale.  This was effective then but does not drive in large quantities of people at any given time.  With access to the internet buyers can tour your home with the click of a button allowing your home to be in front of more potential buyers.  It is a fact that if more people see your listing the better chance you have at selling your home faster and at a higher price.

Many people are under the assumption that if they try to sell the home independently they will get more money.  If no one is bidding or even looking at their home then they resort to lowering the price.  If a seller is going to lower the price of their home to attract more buyers then why not just hire a real estate agent and get the home sold faster?  This doesn't require a price reduction and your home will get more traffic from buyers.

All in all, regardless of preconceived assumptions give the young real estate agent a chance to sell your home.  That is your best choice over going with just a basic listing like the "Buy Owner" option or having a real estate agent that has been around for over 20 years list it.  Younger Realtors also do not manage as many listings as someone who has a larger client base.  They will focus their undivided attention towards one goal...selling your house using the latest marketing technology.

Tips on Selling Your Home in Schaumburg

Do you have a house in Schaumburg that you would like to sell? Selling a home in a market that fluctuates the way it does today is not always easy. Schaumburg is a town that has more people moving into it than leaving which is always a good thing.

Here are a few tips when going to sell your home in Schaumburg:

1. Price your home correctly - Consult a Realtor in Schaumburg to get the best market value for your home. Someone who knows the Schaumburg market well would be a Realtor located in the town that has the experience and knowledge it takes to get your home sold quickly and at maximum value. It is a known fact that your home will be sold faster if you list it with a Schaumburg Realtor rather than try to sell the home independently. We all know that time is money and when a property sits on the market for a long period of time the owner tends to lose money and ends up reducing the price to attract more buyers. This isn't always an efficient way to get maximum value for your home.

2. Get your finances in order - Start by getting your home appraised. Finding out the value of your home along with any problems that may come up during an inspection will give you an advantage. You will know where your Schaumburg home stands when buyers start coming to look at it and negotiate prices. The second part that is important to get approved for a mortgage. You can go through many companies to to get a mortgage but not all mortgages are good. Know the terms and conditions that you are getting yourself into before you commit to a mortgage company or bank. Consulting a Realtor can help give you an advantage because they work with mortgage companies all of the time and know who is honest and easy to work with.

3. Be a smart marketer - EVen if you do not have experience in marketing, it is not hard to know that when you are selling your Schaumburg home you want to have your home listed in as many places as possible. Your schaumburg realtor knows where people locally look for houses and will advertise on your behalf. If you get a good realtor they may even help pay for some advertisements in local magazines, papers and the internet.

Marketing for real estate keeps changing at a fast pace. Dont assume that you know how to market the listing of your home if you have never done it before or had success with it 15 years ago. Realtors in Schaumburg are up to date on the latest trends and usually have a monthly budget to work with already in place. Just because you think that taking out an expensive advertisement in the paper for the sale of your home is going to work because it once did years ago does not mean that it will work again today. Put your pride aside when it comes to marketing because the average person is not an expert. Some things should be left to a professional Realtor.

Additionally, giving buyers the signs they need to locate your home is increasingly important. Potential buyers may have a hard time finding your house no matter where it’s located, and using directional signs to ensure that your home will be seen is imperative. Count how many turns it takes to find a main street. The number of turns you make is the number of signs you’ll need.

4. Find a fixer-upper to increase value in short time - If you are looking for a place to live for a few years and want to make a quick dollar by fixing it up and selling it you can do it. This is a strategy that many people in progressive neighborhoods and towns take on and make thousands of dollars while doing it. Why not make real estate bring you riches while putting a roof over your head?

Small changes you make now – such as replacing outdated appliances, applying a fresh coat of paint inside and out, and replacing hardwood floors or carpeting – can help raise the asking price when it’s time to relocate at the end of your assignment. Upgrading too much or too little will be something that you want to avoid. Consult a real estate agent in Schaumburg for some upgrading advice and they will be able to tell you what is good to change and what should stay the same.

5. Do your research before relocating - Moving to a new part of the country can be overwhelming, especially if you have children in school. Check the details on school districts, neighborhoods and even find contractors online such as plumbers and electricians before you arrive. You can find most of this information online so it is accessible to you. Generally towns with larger populations have good and bad areas.

6. From Curb Appeal to Your First Open House - Curb appeal is the impression buyers get when they first pull up to a home. This can be something that makes a long standing impression on buyers. Make sure hedges, bushes and the lawn are trimmed, flowers are abundant and fences look brand new. A fresh coat of paint makes a home look cared for.

All in all there are many things that you can do to make your home sell faster and at a higher price. Contact a Schaumburg Realtor for help when purchasing a home in the Schaumburg area.

Real Estate in Schaumburg, Illinois

Are you looking to purchase a home in Schaumburg, Illinois? Schaumburg is a pristine community that has a good variety of people. The school district is one of the best in the state of Illinois with some of the highest paid teachers. Schaumburg is a family oriented community that continues to grow each year. Property value in Schaumburg has retained its value even when the economy fluctuates.

Real estate in Schaumburg Illinois thrives throughout year to year. If you are a buyer looking to purchase a home in Schaumburg check out AaronWittenstein.com. Aaron is on of the best realtors in Schaumburg and can help buyer purchase a home or sellers get top dollar for their home in a timely manor.

For updated listings in Schaumburg click here. Buyers who are represented by a realtor tend to have an easier time finding what they need and getting the price that they are looking for. How do you know what to look for when purchasing a home? How do you know what to do to get your home prepared to sell? Below is a solid guideline list for both buyers and sellers:

Exterior:

• Repair or replace missing and/or damaged fence slats, stakes and posts.
• Remove dead tree and shrubbery that it causing damage (or may cause damage) to the house
• Power wash siding, walkways, decks, under the eaves and anyplace where dirt and spider webs are a problem.
• The garage door should open easily and quietly.
• Clean grease and oil spots from concrete or asphalt surfaces.
• Polish door handles, door knockers and anything that should be shiny.
• Replace/repair any broken or unsightly items.. such as handles, mailboxes, lock pads.
• A fresh coat of paint anywhere, in or on a house says to buyers "this house is cared for."
• Make repairs to worn shingles or roofing tiles and gutter seams
• Clean out the gutters.

Interior:

• Rub a bar of soap on all window and slider tracks to aid in ease of opening.
• Keep stairways tidy and assure that all handrails are sturdy, secure and safe.
• Repair or replace missing or damaged tile, hardwood, vinyl and baseboards.
• Repair or replace or reface countertops: broken tiles, chipped laminate.
• Pay close attention to bathroom sink and tub surrounds. New caulking may be needed.
• Replace old, outdated and soiled carpeting.
• Re-enamel, patch or replace badly chipped or stained fixtures. Tub, tile and porcelain refinishers are often less expensive than purchasing new.
• Repair noisy or leaky toilets and faucets. Clean faucets filter screens for a nice even flow.

When purchasing a home it is important that major renovations had a building permit issued when they were completed. This ensures that your home was safely built according to state, county and city ordinances.

Schaumburg Illinois has one of the best park districts around offering services for residents of all ages. This includes sports, exercise classes, pools and much more. Do you own an airplane? Schaumburg has its own airport for the recreational aviation lover.

Schaumburg is a great place to live so take a look at our listings now!