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.