Showing posts with label 60089. Show all posts
Showing posts with label 60089. Show all posts
Wednesday, September 29, 2010
Saturday, March 6, 2010
Buffalo Grove
Real Estate Terminology for First Timers
First time buyers face a learning curve that can feel overwhelming if the right level of support and education is not available. It's not enough to merely educate one's self on buying strategies, mortgage application, and closing process. Buyers must also navigate through a sea of unfamiliar legalese, home building lingo and real estate specific jargon.
The glossary below is by no means complete and is no substitute for the careful guidance of an experienced real estate agent, but it can serve as a good primer for consumers getting their feet wet in real estate for the first time.
Amortization - The process of paying the principal and the interest on a mortgage through regularly scheduled payments.
Appraised Value - A licensed appraiser's opinion of the current market value of a property.
Assessed Value - A tax assessor's determination of the value of a home in order to calculate a tax base.
Breezeway - A roofed passage way with open sides.
Capital improvement - Any improvement that extends the life or increases the value of a piece of property.
Comparable sales - Recent sales of similar properties in nearby areas and used to help determine the market value of a property. Also referred to as "comps."
Contingency - A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. One example is a buyer's contractual right to obtain a professional home inspection before purchasing the home.
Dry Rot - Decay of seasoned wood caused by fungus.
Earnest Money Deposit - A deposit made by the potential home buyer as evidence of good faith that he or she is serious about buying the house.
Easement - A right or interest in the use of the land of another which entitles the holder to some use, privilege or benefit, such as to place power lines, pipe lines or roads.
Abbreviations in Listing Advertisements
The agent shorthand found in listing ads can baffle the average consumer. Below are some of the most common acronyms and abbreviations found on listings.
AGP - Above Ground Pool
ATT - Attached
CA, CAC -Central Air Conditioning
CH/BW - Chain Link/Barbed Wire
EIK - Eat-in-kitchen
FDR - Formal dining room
FP - Fireplace
FSBO - For Sale By Owner
Gar - Garage
HDW/HWF/Hdwd - Hardwood Floors
HVAC - Heating, Ventilation and Air Conditioning
IGP - In-ground pool
MLS - Multiple Listing Service
NC - New construction
PSF - Per Square Foot
SFD - Single Family Detached
Upr - Upper floor
w/d - washer/dryer
wic - walk-in-closet
Egress - The exit point from a property.
Escrow - An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.
Energy Star - A joint program through the U.S. Environmental Protection Agency and the U.S. Department of Energy that sets energy efficiency guidelines for products, homes and businesses.
Equity - A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
Fixtures - Those parts of a property affixed to structures or land, usually in such a manner that they cannot be independently moved without damage to themselves or the property housing supporting or pertinent to them. Fixtures are usually included in a sale and commonly include but are not limited to items such as carpets and awnings.
Full Disclosure - In real estate, revealing all the known facts which may affect the decision of a buyer or tenant. A broker must disclose identified defects in the property for sale or lease.
Green building - Also known as sustainable building or environmental building, this definition varies depending on the agency or group. Generally it means to construct a building to the highest environmental standards by minimizing the use of energy, water and materials. A green building, for example, might have skylights, recycled building materials and solar panels.
Ingress - The entry point to a property.
Lien - A legal claim against a property that must be paid off when the property is sold. A mortgage or first trust deed is considered a lien.
MLS (Multiple Listing Service) - An MLS is an organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. MLS's are local or regional.
Private mortgage insurance (PMI) - Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI when the amount borrowed exceeds 80% of the purchase price or home's value.
Plat - A plan, map or chart of a tract or town site dividing a parcel of land into lots.
Subdivision - An area of land laid out and separated into lots, blocks, and building sites, and in which public facilities such as streets, alleys, parks, and easements for public utilities are also planned.
Sweat equity - used to describe the contribution made to a project by people who contribute their time and effort.
Title - A legal document evidencing a person's right to or ownership of a property.
Title company - A company that specializes in examining and insuring titles to real estate.
Eric P. Egeland, SFR, CDPE, e-PRO
Broker Associate
RE/MAX SUBURBAN
HomesInBG.com
Friday, February 26, 2010
Buffalo Grove Short Sales
Short Sales
What is a short sale?
A Short Sale is when the lender agrees to accept less than what’s owed on a mortgage that is secured by real estate via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure.
What are the benefits of a short sale to the homeowner?
The seller wins by avoiding foreclosure by selling their home before the foreclosure auction even if they owe more than its worth. If they were to sell the house the traditional way with a realtor without a short sale, typically they would have to bring tens of thousands of dollars to the closing to sell their own home. This is not an option for them because they are in foreclosure and don’t have any money. The lender typically will pay closing costs & commissions in a Short Sale to avoid foreclosure.....the Banks do not want to own your home.
What are the benefits to the lender?
The lender wins because they are getting some of their bad debt paid off. You see, when a lender has delinquent loans on their books, it affects how much money they can lend out in new loans because they are regulated by the FDIC. So the more bad loans they can get rid of, the more good loans they can then go ahead and acquire.
Also by taking a home to auction, they can lose tens of thousands of dollars.
So it’s a huge cost savings to them to do a short sale before the auction occurs.
What are the benefits to the buyer?
The buyer can get a great price, sometimes below market value.
Eric is a Certified Distressed Property Expert and also has his NAR Short Sales and Foreclosure Resource Certification. He has the knowledge & training to help.
For more detailed information on short sales please email or call 847.337.7090
Thank You,
Eric P. Egeland
RE/MAX SUBURBAN
847.337.7090
NorthShoreREO.com
Primary IL Service Areas: Libertyville 60048, Wheeling 60090, Deerfield 60015, Buffalo Grove 60089, Vernon Hills 600061,Lincolnshire 60069, Chicago Lincoln Park 60614 Lakeview 60657, West Town 60622, Bucktown-Wicker Park 60622, Long Grove 60047, Arlington Heights 60005, 60004, Prospect Heights 60070, Palatine 60067, 60074, Lake Zurich 60047, Lake Forest 60045, Northbrook 60062, Rolling Meadows 60008, Elk Grove Village 60007, Mount Prospect 60056, Highwood 60040, Libertyville 60048, Mettawa 60048 60045, Green Oaks 60048, Highland Park 60035, Glenview 60026 60025, Mundelein 60060, Fort Sheridan 60037, Des Plaines 60016 60018, Park Ridge 60068, Schaumburg 60173, Lake Bluff 60044, Barrington 60010 60011, Wilmette 60091, Winnetka 60093, Hoffman Estates 60179, Golf 60029, Niles 60714, Morton Grove 60053, Grayslake 60030, Gurnee 60031,Kenilworth 60043, Skokie 60077, Round Lake 60073, Round Lake Beach 60073, Kildeer 60047, Hawthorn Woods 60047, Deer Park 60047, Prairie View 60069, Glencoe 60022, Kenilworth 60043, Inverness 60010, Wauconda 60084, Johnsburg 60050, Schaumburg 60195, Algonquin 60102, Lisle 60532, Wadsworth 60083, Elmhurst 60126, Crystal Lake 60012, Lake in the Hills 60156, Antioch 60002, Saint Charles 60174, Downers Grove 60515, Hinsdale 60521 60522, Western Springs 60558, Clarendon Hills 60514, La Grange 60525, Frankfort 60423, Mokena 60448, Wheaton 60187, Bannockburn 60015, Riverwoods 60015, Burr Ridge 60527, Lake County, Cook County, McHenry County, DuPage County
If you need service in an area that is not listed above please contact us & we may be able to accommodate.
What is a short sale?
A Short Sale is when the lender agrees to accept less than what’s owed on a mortgage that is secured by real estate via a sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure.
What are the benefits of a short sale to the homeowner?
The seller wins by avoiding foreclosure by selling their home before the foreclosure auction even if they owe more than its worth. If they were to sell the house the traditional way with a realtor without a short sale, typically they would have to bring tens of thousands of dollars to the closing to sell their own home. This is not an option for them because they are in foreclosure and don’t have any money. The lender typically will pay closing costs & commissions in a Short Sale to avoid foreclosure.....the Banks do not want to own your home.
What are the benefits to the lender?
The lender wins because they are getting some of their bad debt paid off. You see, when a lender has delinquent loans on their books, it affects how much money they can lend out in new loans because they are regulated by the FDIC. So the more bad loans they can get rid of, the more good loans they can then go ahead and acquire.
Also by taking a home to auction, they can lose tens of thousands of dollars.
So it’s a huge cost savings to them to do a short sale before the auction occurs.
What are the benefits to the buyer?
The buyer can get a great price, sometimes below market value.
Eric is a Certified Distressed Property Expert and also has his NAR Short Sales and Foreclosure Resource Certification. He has the knowledge & training to help.
For more detailed information on short sales please email or call 847.337.7090
Thank You,
Eric P. Egeland
RE/MAX SUBURBAN
847.337.7090
NorthShoreREO.com
Primary IL Service Areas: Libertyville 60048, Wheeling 60090, Deerfield 60015, Buffalo Grove 60089, Vernon Hills 600061,Lincolnshire 60069, Chicago Lincoln Park 60614 Lakeview 60657, West Town 60622, Bucktown-Wicker Park 60622, Long Grove 60047, Arlington Heights 60005, 60004, Prospect Heights 60070, Palatine 60067, 60074, Lake Zurich 60047, Lake Forest 60045, Northbrook 60062, Rolling Meadows 60008, Elk Grove Village 60007, Mount Prospect 60056, Highwood 60040, Libertyville 60048, Mettawa 60048 60045, Green Oaks 60048, Highland Park 60035, Glenview 60026 60025, Mundelein 60060, Fort Sheridan 60037, Des Plaines 60016 60018, Park Ridge 60068, Schaumburg 60173, Lake Bluff 60044, Barrington 60010 60011, Wilmette 60091, Winnetka 60093, Hoffman Estates 60179, Golf 60029, Niles 60714, Morton Grove 60053, Grayslake 60030, Gurnee 60031,Kenilworth 60043, Skokie 60077, Round Lake 60073, Round Lake Beach 60073, Kildeer 60047, Hawthorn Woods 60047, Deer Park 60047, Prairie View 60069, Glencoe 60022, Kenilworth 60043, Inverness 60010, Wauconda 60084, Johnsburg 60050, Schaumburg 60195, Algonquin 60102, Lisle 60532, Wadsworth 60083, Elmhurst 60126, Crystal Lake 60012, Lake in the Hills 60156, Antioch 60002, Saint Charles 60174, Downers Grove 60515, Hinsdale 60521 60522, Western Springs 60558, Clarendon Hills 60514, La Grange 60525, Frankfort 60423, Mokena 60448, Wheaton 60187, Bannockburn 60015, Riverwoods 60015, Burr Ridge 60527, Lake County, Cook County, McHenry County, DuPage County
If you need service in an area that is not listed above please contact us & we may be able to accommodate.
Sunday, May 31, 2009
Interest Rate Recap
Interest rates across the board spiked last week. Depending on who you asked and when, the 30-year fixed-rate mortgage rose as much as one percentage point. Officially, Bankrate.com has the national average at around 5.5%, but its survey was conducted before the full brunt of the increase.
Various explanations were given for the spike in interest rates. Impending inflation was at the forefront, with one particularly animated pundit claiming U.S. inflation could approach Zimbabwe levels. Fact is, most people are already expecting some inflation down the road, so inflation alone was an unlikely reason. A more plausible explanation is that the Treasury Department has been issuing so much debt lately, $101 billion worth last week alone, that it simply swamped demand, so bond prices fell and the interest the Treasury had to pay to attract buyers rose.
At any rate, it's not the end of the world. Over the past 25 years, the 30-year fixed-rate mortgage has averaged around 7.8%. In 2007, the average rate was around 6.3%. And even last year, the average rate was around 6.2%.
The big concern with last week's rate spike is that it could put downward pressure on home prices and sales. It's a legitimate concern, to be sure, given that existing home sales rose again in April to an annual pace of 4.68 million units, with about 45% of April's sales attributable to foreclosures and short sales. Meanwhile, new home sales continue to make positive strides, albeit slight, with sales rising to 352,000 units annually.
The good new is that homes remain affordable, at least when vetting the national numbers, which, admittedly, aren't always applicable to the local scene. That said, the median price for an existing home in April was $170,200, while the median price for a new home was $209,700.
Eric P. Egeland
RE/MAX UNITED
847.337.7090
HomesInBG.com
Various explanations were given for the spike in interest rates. Impending inflation was at the forefront, with one particularly animated pundit claiming U.S. inflation could approach Zimbabwe levels. Fact is, most people are already expecting some inflation down the road, so inflation alone was an unlikely reason. A more plausible explanation is that the Treasury Department has been issuing so much debt lately, $101 billion worth last week alone, that it simply swamped demand, so bond prices fell and the interest the Treasury had to pay to attract buyers rose.
At any rate, it's not the end of the world. Over the past 25 years, the 30-year fixed-rate mortgage has averaged around 7.8%. In 2007, the average rate was around 6.3%. And even last year, the average rate was around 6.2%.
The big concern with last week's rate spike is that it could put downward pressure on home prices and sales. It's a legitimate concern, to be sure, given that existing home sales rose again in April to an annual pace of 4.68 million units, with about 45% of April's sales attributable to foreclosures and short sales. Meanwhile, new home sales continue to make positive strides, albeit slight, with sales rising to 352,000 units annually.
The good new is that homes remain affordable, at least when vetting the national numbers, which, admittedly, aren't always applicable to the local scene. That said, the median price for an existing home in April was $170,200, while the median price for a new home was $209,700.
Eric P. Egeland
RE/MAX UNITED
847.337.7090
HomesInBG.com
Tuesday, February 10, 2009
Market Recap
If a retailer wants to stimulate sales, what does he do? He lowers prices. It's a simple, yet powerful, principle of economics that we've been proselytizing over the past two months, and for good reason, it works. To wit: The National Association of Realtors (NAR) reported that its index of pending home sales, which measures contracts signed but not closed, rose 6.3% to 87.7 in December. Year-over-year, the pending-home-sales index was up 17.5% in the West and 1.6% in the South. Even more encouraging, the index's numbers reflect the most favorable combination of home prices, mortgage interest rates, and family income since tracking started in 1970.
Lower mortgage prices have contributed greatly to improving housing affordability. The prime 30-year fixed-rated mortgage has been floating below 6% for the past three months. But the mortgage market's contribution could diminish in the near term. Recent news that the federal government is seeking ways to lower mortgage-rates further sounds like a positive, but could actually be doing more harm than good. Yes, lower rates are a good thing (and we understand the NAR supports intervention to push rates lower), but if people are always anticipating lower rates, they hesitate to act today. Let's not forget that mortgage rates in the 5% range are darn-good rates, and even those can be readily refinanced if the feds succeed in pushing rates down.
While housing prices and mortgages have trended lower, unemployment has trended higher. Jobs, or the lack thereof, is the monkey wrench that could conceivably grind the housing-recovery gears to a halt (operative word being “conceivably”). On that front, there was much media teeth-gnashing and lamenting last week because the unemployment rate rose to 7.6% on 598,000 lost jobs in January.
How did the financial markets react to the “dire” unemployment news? The Dow Jones Industrial Average surged ahead 150 points in the first hour of trading. Like we stated last week, many economists view the recent job cuts as a bottoming of the recession, not an omen of things to come. It appears the stock market shares the same view.
Eric P. Egeland
RE/MAX UNITED
847.337.7090
HomesInBG.com
Lower mortgage prices have contributed greatly to improving housing affordability. The prime 30-year fixed-rated mortgage has been floating below 6% for the past three months. But the mortgage market's contribution could diminish in the near term. Recent news that the federal government is seeking ways to lower mortgage-rates further sounds like a positive, but could actually be doing more harm than good. Yes, lower rates are a good thing (and we understand the NAR supports intervention to push rates lower), but if people are always anticipating lower rates, they hesitate to act today. Let's not forget that mortgage rates in the 5% range are darn-good rates, and even those can be readily refinanced if the feds succeed in pushing rates down.
While housing prices and mortgages have trended lower, unemployment has trended higher. Jobs, or the lack thereof, is the monkey wrench that could conceivably grind the housing-recovery gears to a halt (operative word being “conceivably”). On that front, there was much media teeth-gnashing and lamenting last week because the unemployment rate rose to 7.6% on 598,000 lost jobs in January.
How did the financial markets react to the “dire” unemployment news? The Dow Jones Industrial Average surged ahead 150 points in the first hour of trading. Like we stated last week, many economists view the recent job cuts as a bottoming of the recession, not an omen of things to come. It appears the stock market shares the same view.
Eric P. Egeland
RE/MAX UNITED
847.337.7090
HomesInBG.com
Sunday, November 16, 2008
Thursday, July 3, 2008
Weekly mortgage recap
An anemic economy, sinking home values and soaring gas prices pushed consumer confidence to its lowest level since 1992, the U.S. Confidence Board reported last week Many news outlets jumped on the news, spinning it to suggest the economy is spiraling downward like an unimpeded helix.
But maybe things really aren't all that dire. Gross domestic product – the output of goods and services produced by labor and property – increased at an annual rate of 1.0% in the first quarter of 2008, according to final estimates released by the Bureau of Economic Analysis. In comparison, GDP increased only 0.6% in the fourth quarter of 2007. The data suggest economic growth is accelerating.
Perhaps consumers would feel more upbeat if they knew that existing home sales are stabilizing, with sales rising 2% in May from April to a seasonally adjusted annual rate of 4.99 million units. At the same time, inventory of existing homes fell 1.4% to 4.49 million units in May, which represents a 10.8-month supply at the current sales pace, down from a 11.2-month supply in April.
The Federal Reserve appeared upbeat by switching its focus to abating inflation from inflating the economy. But although the Fed said it expects inflation to moderate "later this year,” it admitted that it is concerned over “continued increases in the prices of energy and other commodities.”
Credit markets didn't appear too terribly concerned about inflation; mortgage rates finally held firm for a week, with the prime 30-year fixed-rate mortgage averaging 6.62%, the prime 15-year fixed-rate mortgage averaging 6.19%, and the prime 5/1 adjustable-rate mortgage averaging 6.28%, according to Bankrate.com's weekly survey.
Eric P. Egeland
RE/MAX United
847.337.7090
HomesInBG.com
But maybe things really aren't all that dire. Gross domestic product – the output of goods and services produced by labor and property – increased at an annual rate of 1.0% in the first quarter of 2008, according to final estimates released by the Bureau of Economic Analysis. In comparison, GDP increased only 0.6% in the fourth quarter of 2007. The data suggest economic growth is accelerating.
Perhaps consumers would feel more upbeat if they knew that existing home sales are stabilizing, with sales rising 2% in May from April to a seasonally adjusted annual rate of 4.99 million units. At the same time, inventory of existing homes fell 1.4% to 4.49 million units in May, which represents a 10.8-month supply at the current sales pace, down from a 11.2-month supply in April.
The Federal Reserve appeared upbeat by switching its focus to abating inflation from inflating the economy. But although the Fed said it expects inflation to moderate "later this year,” it admitted that it is concerned over “continued increases in the prices of energy and other commodities.”
Credit markets didn't appear too terribly concerned about inflation; mortgage rates finally held firm for a week, with the prime 30-year fixed-rate mortgage averaging 6.62%, the prime 15-year fixed-rate mortgage averaging 6.19%, and the prime 5/1 adjustable-rate mortgage averaging 6.28%, according to Bankrate.com's weekly survey.
Eric P. Egeland
RE/MAX United
847.337.7090
HomesInBG.com
Thursday, June 5, 2008
Just Listed in Old Farm Village
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Central A/C
Eric P. Egeland
RE/MAX UNITED
847.337.7090
HomesInBG.com
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