La Grange Park Library, 555 N. La Grange Rd.

What will you learn?

• Should I buy now or wait until prices come down?
• Am I better off renting instead of buying?
• Is Real Estate still a good investment?
• How hard is it to get a mortgage?
• How much do I have to have saved toward a down payment?
• What’s the difference between an FHA and conventional mortgage?
• My credit isn’t all that good, can I still qualify for a loan?
• What about buying short sales and foreclosures?

Who will be there?

• Aaron Durand, Home Mortgage Consultant and FHA Specialist for Wells Fargo Home

Mortgage

• Dean Rouso, Broker-Owner of Prime Property Partners and President of the Chicagoland MLS (MRED)
• Real Estate Brokers :  Catherine Dugan LaBelle, Dan Stivers, Dana Wingate, Erika Chavez,

Keena Bikulcius, Veronica Sandoval

Call 708.354.7355 or email Veronica@PrimeAnytime.com to reserve a seat today!

123 Acacia, Unit 606, Indian Head Park, IL

Sale Price: $196,000 (Closed 1/10/2011)

Enormous Penthouse unit NW exposure! Unit boasts huge 6×19 screened in balcony and gorgeous tile accents overlooks residential area and clubhouse. Formal living and dining room, neutral decor, wall to wall carpeting. Spacious kitchen with plenty of cabinet, counter space and island! In unit laundry, 2 full baths, master bath with dressing room, travertine flooring and over-sized shower!

Although this property is now off the market, we have plenty of others to show you in all price ranges and areas. Contact us today for  a free list!

Before you put your home up for sale, use the right comparable sales to find the perfect price.

How much can you sell your home for? Probably about as much as the neighbors got, as long as the neighbors sold their house in recent memory and their home was just like your home.

Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale?

Your best comparable sale is the same model as your house in the same subdivision-and it closed escrow last week. If you can’t find that, here are other factors that count:

Location: The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type: Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades: Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale: You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners: Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights

Even if you live in a subdivision, your home will always be different from your neighbors’. Evaluating those differences-like the fact that your home has one more bedroom than the comparables or a basement office-is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price

If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables?

If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

More from HouseLogic

What You Must Know About Home Appraisals (http://buyandsell.houselogic.com/articles/what-you-must-know-home-appraisals/)

6 Reasons to Reduce Your Home Price (http://buyandsell.houselogic.com/articles/6-Reasons-To-Reduce-Your-Home-Price/)

Other web resources

New York State: “How Estimates of Market Value are Determined for Residential Properties” (http://www.orps.state.ny.us/pamphlet/mv_estimates.htm)

What’s the Value of a View? Research from Texas Christian University (http://www.sbuweb.tcu.edu/mrodriguez/research/viewppr.pdf)

Visit houselogic.com for more articles like this. Reprinted from HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2010.  All rights reserved.

I am attending the Real Estate Summit in Washington D.C. Shaun Donovan, U.S. Secretary of Housing and Urban development has just spoken to our group. Secretary Donovan just stated that HUD will make a announce in the next several weeks that the $8,000 first time homebuyer credit will be allowed to be used as the down payment on a home purchase using a new program that HUD will launch. The program will essentially be a short term bridge loan program for use with Fannie Mae/Freddie Mac (FHS) loans.

This would be a great assistance tool for First Time Homebuyers.

Dean Rouso, Broker-Owner of Prime Property Partners, LaGrange, IL
National Association of REALTORS Director

For many people it seems too overwhelming a task to go through their belongings and furniture with the goal of getting rid of some of it. Unfortunately when moving to a smaller house, it often becomes absolutely necessary to do this. Here are some ways to make the process more manageable.

• Plan Ahead – Don’t wait to start culling until someone has agreed to purchase the home you have had on the market. This could leave you with as little as a couple of weeks to sort through decades of belongings. Start going through your things and getting rid of stuff a month or two before you even put your house on the market. Not only will this give you ample time to decide what you really love and want to keep, but it will also make your house more appealing to potential buyers.
• Include the entire family – Certain objects and possessions mean different things to different family members. Holding onto an old piano that no one ever plays, only means more moving cost and excess unwanted furniture in your new home.
• Photos – Give yourself several days for the task of digitizing all of your family’s photos. Since they are one of our most valued possessions, why not take them out of those giant boxes, scan them and make a CD? This will cut down on a tremendous amount of clutter and it will keep your memories safe forever.
• Shedding basement objects first- Many people put things away in their basements, attics and sheds assuming that someday they may find a need for it again. Seriously consider which items you can live without and start getting rid of them by donating them or selling them.
• “Furnished Home For Sale” – If you are not emotionally attached to your furniture, consider selling them along with the house. This way you save on moving costs and you get to buy all new things for your new home. Not bad!

If you are interested in carpeting your home or just specific areas in your home, it pays to know what is available and what will work best for your home before you go to the store. This way you can narrow down your search and save time, as there are nearly limitless choices when it comes to carpeting. Before we list carpet types and their attributes, be aware that carpeting your stairway will generally cost between six and nine dollars per step. If you prefer a carpet runner, this cost will be significantly higher. In regards to padding, it does extend the life of your carpeting and increases the overall comfort factor. It is completely worth the investment! Always replace your old padding with a new one, because carpeting manufacturers will not honor their warranty with an old pad underneath their new carpeting.

• Plush/Cut-Pile Carpet – Saxony plush is very popular because it is soft with short tufts. It does not wear as well as berber or other high level loop carpets.
• Berber – Has a high-level loop with a nubby texture. It wears very well, although is harder to clean.
• Wool – The most expensive type, but it is comfortable, durable and resistant to dirt. Direct sunlight can fade it.
• Synthetic fiber – It is made of artificial materials. Mostly made of nylon, it is cheaper than wool and is durable. Sunlight can damage it.
• Olefin – Cheap, but less durable than nylon. It is pre-treated to resist fading, but can be damaged by heat and sun. It is a very good choice for basements.
• Acrylics – More expensive than nylon, but more closely resembles wool and it resists fading.
• Sisal – A natural fiber derived from the cactus plant. It is very strong and durable, but is extremely rough in texture.

For anyone facing a foreclosure life can become extremely stressful, as there are so many new issues that you will be faced with. In this time of change and uncertainty, there are actually people out there that are preying on others going into foreclosure. Scam artists are coming out of the woodwork and are offering homeowners facing foreclosure a “deal” to renegotiate their loans for a fee. What people need to know is that in many states it is illegal for a person to ask homeowners for an upfront payment to renegotiate a mortgage – unless the Department of Real Estate holds record of them meeting license and registration requirements. You can verify this information and also check to make sure that your real estate broker and attorneys have valid licenses at www.dre.ca.gov.

Always be skeptical and remember to never give anyone money in advance of any services they are offering. There are many non-profit groups that offer legal aid for free of charge to homeowners that are having trouble making their monthly payments. See more information at this avoiding mortgage foreclosure website.

Insuring your home with the proper coverage is so incredibly important since your home is almost always your biggest investment – and it is where you stay dry and warm. Following are some things every person who is looking to purchase a policy should know:

• Always insure your home for 100% of the cost to rebuild. To figure out that number you can go to buildingcost.net to use their free calculator.
• Flood, earthquake, war and nuclear accident coverage is extra beyond what your basic policy will cover.
• The contents of your house is usually covered at 50% of what the value of the structure is. You must make sure this is adequate coverage for all of your belongings by making an inventory. Use knowyourstuff.org’s free home inventory software to determine this number.
• Take pictures of all of your valuables in case you do need to file a claim. Pictures make the process so much easier.
• Make sure you buy enough liability coverage – you need enough to match your assets.
• Always buy “riders” for any expensive artwork or jewelry that you own. If it is worth more than $2,000, you may consider buying a separate policy for it.
• Shop around as prices vary dramatically. Start with your car insurance company, because they often give discounts to multiple policy owners. You may also go to insure.com to compare prices. 
• Keep your deductible high. Starting with a $1,000 deductible is wise, as most people do not make claims for less than this amount as there are insurance companies that will drop you if you make more than two claims per year.
• Always ask about discounts. Many insurers have them, but you must ask for them. Discounts for installing smoke detectors, an alarm system or a fire-retardant roof are common. Also, if you are 55 years of age or older, mention that as you are considered low-risk – and can get a price reduction.
• Keep your policy up-to-date! Changes to your home, such as a re-model, need to be covered.

Baby boomers are making the reverse mortgage more popular than ever, but just know the potential pitfalls before you consider one.

1. 1. Repayment Rule: If you sell your home or for some reason must live at a hospice, a nursing home or you simply plan to use the home as your second home, you will have to repay the cash you received from the reverse mortgage as well as interest and other fees back to the lender.
2. High Closing Cost and Interest: Don’t forget to shop around and compare prices. Many seniors fail to do this, as they are not as familiar with the reverse mortgage as they are with a traditional mortgage. If offered, reject the adjustable interest rate option. There are many fixed rate reverse mortgage programs available to choose from.
3. Maintenance and Taxes: Always ask the bank to be clear what your monthly payment will be per month, less your escrow payment. Make sure you know the lender’s policy on the home’s maintenance. You might consider taking enough money up front to have for future repairs, so that your monthly payment will always be the same.

Every home needs maintenance repairs over time, but if you are putting your house on the market you may want to know the top four places to put your money so that you will get the biggest return out of it. According to a survey done by HomeGain, in order to get the highest return on your investment, spend your repair dollars on the following in this order:

1. Cleaning and de-cluttering
2. Lightening and brightening
3. Home staging
4. Landscaping

Obviously the monetary returns may vary slightly based on where you live in the country, due to the cost of a repair and the importance of each particular improvement to buyers in that area. HomeGain estimates that making the above repairs and spending between $5,000 and $8,000 on them, you may see a price increase in the West as high as $22,762, in the East as high as $23,532, in the South as high as $21,740 and in the Mid-West as high as $20,279.

Other things never to overlook when putting your house on the market are dirty windows, electrical repairs, plumbing problems, old carpeting, old paint and damaged floors.

To learn more about home improvements go to HomeGain.