Decline in Foreclosures in Chicago South Real Estate

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for sale signIt has been widely reported that the Chicago south real estate market is experiencing a seller’s market due to the scarcity of supply.  Many sellers are seeing multiple offers and limited days on market.

Traditional listings as a percentage of total homes listed on the market are up in some communities in the Chicago south real estate market.  However, it does not appear to be due to an increase in the number of traditional listings.  Rather, there appears to be a decline in several communities of the number of foreclosures.  Wells Fargo and Citibank have halted most of their foreclosure sales due to increased scrutiny by the Office of the Comptroller of the Currency (OCC).  JP Morgan Chase had also halted temporarily halted foreclosures but has resumed them after validating that its processes comply with the OCC guidance. The OCC is also stating that other banks have drastically cut back on foreclosure sales.  This may be good news for sellers deciding whether to put their home on the market in the Chicago and south/southwest suburban market.  Buyer demand is definitely up this season.

As seen in the chart below, total homes available are significantly down compared to the same period in 2012 in most communities.  There is a marked decline overall in both short sales and foreclosures.

active_by_sales_type_-_apr_2013

If you are just starting your home search, you can expect competing offers on many of the homes for sale.  It is just part of the landscape.  As a buyer, know what you want, be ready to make a decision and determine up front what your maximum amount you are willing to offer.  Also, remember — multiple offer status says nothing about the quality of the other offers on the table.  It just means that there is more than one offer.  That being said, this is probably not the market for a low ball opportunity.  If you can’t afford the home, it may not be the right one for you.  As a seller, the home still has to be priced right. No one is going to over pay (and there is still an appraisal) so this is probably still not the opportunity to get back what you paid for your home during the “bubble”. 

If you are looking to buy or sell your home in the Chicago and south/southwest suburbs, please give me a call.  Also, if you are struggling with your mortgage or just upside down, I am a certified short sale specialist.

Millie C Lumpkin, CDPE, SFR
Keller Williams Preferred Realty
Email:  millie.lumpkin@gmail.com
Cell:  (312) 217-5644
Website:  http://ChicagoSouthHomes.com

 

 

 

 

I Don’t Want to Get In A Bidding War

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frustrated face“I don’t want to get into a bidding war. “  In the Chicago south/southwestern real estate market, the supply of inventory is low and many homes listed for sale are seeing multiple offers presented.  This is great news for sellers.  For buyers, though, there’s a concern about paying too much.  That’s understandable.

The most important thing to remember about the multiple offer scenario is to know that multiple offers do not necessarily mean multiple quality offers.  It just means that more than one offer has been presented.  I remember one listing that I had with six offers presented.  However, only two of the six offers were at list price.  The other four were less and a couple were just completely lowball.  Multiple offers just means more than one offer was presented.

In a tight market like today, knowing market value is key in making sure that you are not overpaying.  Prior to submitting your offer, a good agent will pull comps in order to determine market value for the property .  This helps you to make sure that the list price is reasonable before determining your offer price.  If the home is overpriced, you can make the decision whether to present an offer at all.

As part of a good negotiation strategy, you should already know the maximum you are willing to spend on the home.  Take into account the market value, the availability of other homes that fit your criteria and the cost of needed repairs or improvements that you want to make.  If you have already decided the maximum you will be willing to spend, there’s less chance of a frantic bid that breaks your bank.

Multiple offers are just part of the current real estate landscape.  Avoiding them may very well keep you out of the home of your dreams.  If you’re not on the playing field, you can’t win the game.  Just play smart and keep cool.  

Visit my website to search for homes in the Chicago south suburbs or to be notified when new homes come on the market in the suburbs that you are interested in.

If you have any questions about real estate or are looking to buy or sell your home in the Chicago south/southwest market, please give me a call at (312) 217-5644 or email me at millie.lumpkin@gmail.com

Flipping Is Back In the Chicago South Market ….

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real estate investingFlipping is back in the Chicago South market and both investor and buyer should be aware.  I’ve recently come across a couple of interactions where a flipped property was priced well above market value.  In both cases, the homes had been on the market for a while but the investor was so vested in the quality of the product that they refused to come down to the appropriate price level. In these cases, both investor and buyers lose out.

What I have been taught about real estate investing is that you start with the end in mind. In my local market of the south Chicagoland area, foreclosed homes are plentiful below $50,000. In several cases, I have seen novice investors focus on how cheap the property is rather than run the numbers and focus on probable return.  There is no analysis of after-repair value for the neighborhood or sufficient projection of the costs.  In some communities, there is a limited spread between distressed property value and the top end of value for the community.  Thousands of dollars are spent on a project with no regard to the profit margin.  If you are buying the home to live in it for years that is less of a problem. If you are expecting to re-sell the property within a few months, then it is a potentially big problem.

It really does not matter how fabulous your end product is if the market does not support a fabulous sales price.  Market value is not determined by the cost of your improvements or your perception of value.  It is determined by the sales price of comparable properties in the community it is located in. Your project has to be scoped to the conditions of the market it is located in.  Know the market that you are working in — determine upfront if the project will give you a profit margin that you are comfortable with.  This also means getting a realistic picture of market value for the finished picture and pricing it appropriately.    Obviously, a lot of investors are making great money in this market.  However, if you are a small investor, you need to be savvy about the decisions you make.  Above all, don’t get overly emotional about the project.  Focus on the numbers.

Millie C Lumpkin, CDPE, SFR
Realtor
Keller Williams Preferred Realty
Direct: (312) 217-5644
Email Me:  millie.lumpkin@gmail.com

Visit My Website: http://ChicagoSouthHomeSearch.com
Read My Blog: http://ChicagoSouthRealEstateBlog.com
Read My Blog: http://ChicagoSouthShortSales.com

           

Sales Activity in Chicago South Suburbs for March 2013 – 1st Quarter

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Sales Activity in Chicago South Suburbs for the first quarter ending March 2013

Real Estate Market Data for Chicago South Suburbs provided by Millie Lumpkin of Keller Williams Preferred Realty

Chicago South Suburbs Sales Activity

Overall, the number of homes sold in the Chicago South Suburbs through March 2013 were 39.3%  higher than  the first quarter 2012 levels.  In addition, the average sales price for the south suburbs as a whole increased 2.7% over prior year levels with an 18% decline in market time for sold properties.  This is great news!  Although sales activity is higher, there are fewer homes on the market.  This creates an opportunity for those sellers in the market.  Distressed sales remain a significant presence in the south suburbs.  In addition to foreclosures, short sales represent 8% of 1st quarter closed sales. Shown below are statistics for a few communities.

march_2013_sales_activity

Find Homes for Sales in Chicago South Suburbs

Visit my website to search for homes in the Chicago south suburbs or to be notified when new homes come on the market in the suburbs that you are interested in.

To find out what your home is worth in the current market, email me or call me at (312) 217-5644.

 

Income Property for Sale in Chicago South Suburbs

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Income Property for Sale in Chicago South Suburbs

Search current inventory of Investment Properties for Sale in Chicago South Suburbs

Listing Details

Income Property for Sale in Chicago Suburbs

15238 Chicago Rd, Dolton IL 60419
MLS number:  08306255
# of Units:  4
# of Bedrooms:  8

Call Millie Lumpkin at 312-217-5644 to see if this property is still available and arrange a showing.

Great Immediate Income Opportunity

Great opportunity to purchase this 4-unit building in Dolton.  The building is fully occupied and has been well-maintained.  No work is needed.  Building is Section 8 approved with longer term tenants.  This translates into immediate income.  The building has easy access to both public transportation and the  I-94 expressway.  Parking is in the rear.   

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Now is a great time to purchase an income property in the south suburbs.  Prices are great. Rental demand is increasing as homeownership rates decline in the area.  Finally, effective rental rates are forecasted to increase 4% in the Chicagoland area in 2013.  This is a great market to build long term wealth.

 

Click here for additional pictures and information about this property.

Find similar income properties for sale in Chicago South Suburbs. 

Call me with any questions about available properties or to set up a showing.

Is There A Seller’s Market in the Chicago South Suburbs?

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questioning manIs there a sellers’ market in the Chicago south suburbs?  In other words, has the current market shifted to favor sellers rather than buyers? Well, yes in most suburbs but with a footnote.   The number of available homes at the end of January 2013 was significantly lower than January 2012 levels.  However, the number of homes sold is higher indicating that many buyers are getting off the fence and are ready to buy.  This dynamic is causing multiple offer situations in many transactions.

The footnote has to do with price.  Sellers should be aware that buyers are still looking for bargains.  Also, foreclosures still have an impact on values in our market (Illinois had the fifth highest foreclosure inventory in the nation as of December 2012) and still have a significant presence in the Chicago south suburban market.  Each suburb has to be viewed individually but overall there has not been a significant increase in the average sales price.

What does this mean for buyers and sellers in the Chicago south suburbs?  For sellers, now is a great time to have your home on the market.  It still needs to be priced right and presented well but for those needing to sell this may be your time.

For buyers, be prepared for a tight market.   Know what you want, be pre-qualified and if you see a home that you want don’t assume it will stick around.  You should also be prepared for a multiple offer scenario.  This doesn’t mean that you act rashly — ask your agent to prepare a CMA  to check the asking price and take the protections of the standard inspection, attorney review and mortgage contingencies.  Finally, if you like the property and know that it is priced appropriately — don’t lowball your offer.  Most properties that sell get close to their asking price.  [Note to sellers here --- that asking price, however,  may have gone through several price reductions to get to actual market value.]

Visit my website to search for homes in the Chicago south suburbs or to be notified when new homes come on the market in the suburbs that you are interested in.

To find out what your home is worth in the current market, email me or call me at (312) 217-5644.

 

Are You Planning to Buy in the Spring?

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urban_01-country houseMany potential homebuyers still use spring as their target to “start looking” for their new home.  If this is true for you, there are some things you can do to be prepared now so you’ll be ready to GO in the spring.

  1. Speak to a loan officer now to see if there are any issues with your credit, debt levels or income.  A good loan officer will outline any “tweaks” needed and give you a loan amount you should qualify for if everything is in order.  Click here for an earlier blog post on being financially prepared to buy.  There are also good sources for understanding your credit and how to repair your credit.  An early start in making sure your finances are in order will make for a less stressful home search.
  2. In your conversation with your loan officer, you should also have a discussion about the different Buying A New Homeloan products available.  Many people will automatically go for an FHA loan (because of the lower down payment) but you should also consider whether the other loan alternatives may be a better option for you.  Fees on FHA loans have increased in recent years. Make sure you have a good grasp of what the loan payment would be under the different alternatives available. In addition, there are other loans other than FHA which have lower down payments.  Ask questions if you don’t understand.  This is a big deal and you have every right to make sure you understand what’s going on.
  3. Regarding the down payment, most loans will require a down payment.  Down payments generally range from 3.5% for FHA up to 20%.  If you don’t already have the money saved, you will need a plan for getting it or closing the gap of what’s needed.  Your loan officer should also let you know about closing costs for your home purchase.  Typical closing costs are mortgage origination fees, attorney costs, escrow of taxes, etc.  Expect about 3% of the purchase price.  Often, these can be negotiated as part of the offer but not always.  Again, you should have a plan for taking care of this cost.
  4. Now for the fun part …. Determine your wants and needs for your new home.  It will help maximize your home search time if you already have a good idea of what’s important to you.  Think about location, schools, your lifestyle and which architectural styles appeal to you most. Do you want a family room, attached garage, big backyard, updated kitchen …. What are your deal breakers?  The clearer you are in what you want, the easier it is for your real estate agent to help you find your dream home.
  5. Finally, what’s your exit plan for your current residence?  If you rent, how will you handle it if you close earlier or later than your expiration date?  Do you need to discuss this with your landlord?  If you own your current home, do you need to sell it first?

Buying a home requires some planning.  If you have any questions or would like a consultation to discuss buying your new home, please contact me.

Millie C Lumpkin, CDPE, SFR
Realtor
Keller Williams Preferred Realty
Direct: (312) 217-5644
Office: (708) 798-1111
Email Me:  millie.lumpkin@gmail.com
  Search for Homes

Quick and Cheap Tips for Preparing Your Home to Sell

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Many sellers in the Chicago and south suburban market do not want to invest any significant money for improvements in their home.  This is especially true in today’s market of lower home values from years past.  However, some quick and cheap fixes may be a good idea in order to keep the dollar signs from triggering in potential buyers’ minds.

A good cleaning is one of the easiest and cheapest fixes a seller can make.  Unclean spaces can read as neglected spaces in a buyer’s mind.  So bring out the Spic and Span.

Clean the carpets – many times a professional carpet cleaning can stop the impression by the buyer that they will need to immediately replace the carpeting.  It won’t help the bad impression from that grass green shag carpeting from the 70’s but …..

Another cheap step would be de-cluttering.  You want to maximize the perception of spaciousness.  A lot of big furniture in a space, walls loaded with pictures and counters filled with stuff closes in a room.  De-cluttering also helps to de-personalize the space.  A buyer’s vision should not have to struggle against the presence of so much of your stuff that they can’t imagine their stuff in your home.

As I write this, I am sitting in an open house for a seller that smokes.  Try as much as you can to neutralize any unpleasant odors such as smoking or pet odor.  As a buyer just mentioned in this house, that means ripping up the carpet and repainting.  $ $ $

Make sure your furniture does not cut off the flow in your rooms.  A sofa in the middle of the room can chop up a large room and make it appear smaller.  Good flow and spaciousness are important to many buyers.  And this fix is F R E E!  Just move your furniture around.

Paint – paint is about $20 / gallon.  Minimum cost but it can have a big payoff. Patch up those dings in the wall.  Scrape that peeling paint (this can actually be an issue for FHA financing for potential buyers) and cover that unusual paint color choice that only you love.  Also, if you have a lot of wallpaper, take it down.  Paint just freshens a room and it costs little to make the improvement.

Buyers are just looking for reasons to eliminate your home from their list of homes to consider.  A little effort on your part can increase the likelihood of your home getting sold.  If you are planning to sell in the spring, now is a great time to create your “to-do” list.  Knock out these easy projects and create a more favorable impression of your home for potential buyers.

And then, of course, give me a call if you are in Chicago or the south/southwest suburbs.  I would love to work with you to sell your home.

Millie C Lumpkin, CDPE, SFR
Realtor
Keller Williams Preferred Realty
Direct: (312) 217-5644
Office: (708) 798-1111
Email Me:  millie.lumpkin@gmail.com

Visit My Website: http://ChicagoSouthHomes.com
Read My Blog: http://ChicagoSouthRealEstateBlog.com
Read My Blog: http://ChicagoSouthShortSales.com

            Search for homes

Also, if you know someone struggling with their mortgage, I can help. Illinois was #1 in the country for foreclosures in August. This was primarily in the Chicago area.  Avoiding foreclosure helps everyone.

 

 

 

Sales Activity in Chicago South Suburbs for December 2012

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Sales Activity in Chicago South Suburbs for December 2012

Real Estate Market Data for Chicago South Suburbs provided by Millie Lumpkin of Keller Williams Preferred Realty

Chicago South Suburbs Sales Activity

Overall, the number of homes sold in the Chicago South Suburbs  in December 2012 were 31%  higher than  December 2011 levels.  However, the average sales price for the south suburbs as a whole was slightly lower than prior year levels.   Although sales activity is higher, there are fewer homes on the market.  This would tend to favor those sellers in the market.  Foreclosures also continue to remain a significant presence in the south suburbs.  Shown below are statistics for a few communities .

Find Homes for Sales in Chicago South Suburbs

Visit my website to search for homes in the Chicago south suburbs or to be notified when new homes come on the market in the suburbs that you are interested in.

To find out what your home is worth in the current market, email me or call me at (312) 217-5644.

Millie C Lumpkin, CDPE, SFR
Realtor
Keller Williams Preferred Realty
Direct: (312) 217-5644
Office: (708) 798-1111
Email Me:  millie.lumpkin@gmail.com
Visit My Website: http://ChicagoSouthHomes.com
Read My Blog: http://ChicagoSouthRealEstateBlog.com
Read My Blog: http://ChicagoSouthShortSales.com

            Search for homes

Also, if you know someone struggling with their mortgage, I can help. Illinois was #1 in the country for foreclosures in August. This was primarily in the Chicago area.  Avoiding foreclosure helps everyone.

Did Your Home’s Listing Expire?

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When you hired your realtor to sell your home, you agreed to a certain time frame to get the job done.  For most sellers in the Chicago area, that period was 6 months to a year.  For many sellers, their home was not sold in that time.

There are several elements to the successful marketing of your home:

  1. Pricing
  2. Condition of the Home
  3. Marketing Effort of the Agent

Pricing

Many homes expire because the homes are priced higher than current market value.  It can be quite disturbing to a homeowner to find out how much the market has declined in recent years.  For many homeowners, their pricing decision is based more on their mortgage balance rather than market value. For other homeowners, they were planning for more money from the sale of their home than the market will allow. An overpriced home will end up having to take price reductions to get down to market value. And generally, a home that is initially overpriced will often sell for less than it would have if priced appropriately at the beginning. This is partially because the market loses interest in a home the longer it is on the market.

Condition of the Home

One consequence of falling home values is that many sellers are unwilling to make a lot of repairs  or updates in order to sell their home.  However, a home with a lot of repairs needed (even if minor) turns off sellers. Cluttered or unclean homes also turn off buyers.  As said on so many HGTV shows, buyers want to be able to see themselves living in your home. The square footage of the home needs to be maximized by cutting down on the stuff and the appeal of the home needs to be maximized throughout the time that is on the market.

Marketing Effort of the Agent

Many agents put only a minimum amount of effort into the marketing of their home listings. The first step is putting the home in MLS.  However, many agents only have one exterior picture or lack descriptive remarks. Sometimes the interior pictures don’t show the home at its best. Most brokerages will also syndicate the listings out to many of the consumer real estate sites like Realtor.com, Trulia and Zillow.  However, sometimes these sites require a manual touch by the agent to add pictures, check the price, etc. A good marketing effort will also take care of other technological tools available as well as non-tech marketing efforts.  You should know how your home is being marketed and have some feedback throughout the process.

If your home has expired or you are looking to put your home on the market for the first time, please contact me to schedule a listing consultation.  We can sit down and discuss what it will take to get your home sold.  Our local market currently favors sellers with fewer homes on the market.  Homes are being sold.  Yours should be one of them.

Millie C Lumpkin, CDPE, SFR
Realtor
Keller Williams Preferred Realty
Direct: (312) 217-5644
Office: (708) 798-1111
Email Me:  millie.lumpkin@gmail.com
Visit My Website: http://ChicagoSouthHomes.com
Read My Blog: http://ChicagoSouthRealEstateBlog.com
Read My Blog: http://ChicagoSouthShortSales.com

            Search for homes

Also, if you know someone struggling with their mortgage, I can help. Illinois was #1 in the country for foreclosures in August. This was primarily in the Chicago area.  Avoiding foreclosure helps everyone.