Buyers

How long does it take to sell a 4 (or 4+) bedroom house in Coal City, Diamond, Carbon Hill? Not as long as it used to!

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I’ve been spending a lot of time in Diamond Estates this week. Many homes, damaged in last year’s tornado, are fixed with homeowners back in place- some bigger and better than ever before. Others are works in progress. Because it’s how my brain works, I wanted to put a number on the subdivisions’ recovery- or lack thereof. In the below chart you will see the numbers for a year leading up to the tornado and the year since. I’m pleased to report that while we’re a sale off, the median price is up a percent and the average time it takes to put said houses under contract is down 9 days (or about 31% depending which angle sounds better to you). This shows that these two subdivisions are as strong, or stronger, than previously. I’d expect nothing less from this #CoalerStrong community.

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Open Houses Tomorrow

by Jim Ludes on June 13, 2014

in Buyers

I’m doing two open houses tomorrow afternoon.

  1. 105 E. Main Street, Braceville
  2. 738 W. Kennedy Road, Braidwood

Come on our and see me. I’ll have Jimmy Johns.

If you can’t make it to the opens, scope out the videos below.

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Great news, Morris! USDA has extended you until 2020! After several years of living 6 months to 6 months, we now have you

Single family housing loans are made possible through guarantees provided by the United States Department of Agriculture, Rural Development.

locked up for 6 years. It wasn’t long ago that I wrote about this.… but it will be a while until I have to again. This is good for both buyers and sellers interested in Morris.

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List to Sold Percentage

by Jim Ludes on February 11, 2014

in Buyers,Statistics

A question that comes up frequently when working with buyers is, “how much can I reasonably expect to get off the price of this home?” While I stress that each house on the market represents an individual, unique opportunity, there is a way of generalizing for the masses. One can see by the attached charts (one for median and one for average: both for Grundy and Will County) what the sale price to list price percentages do. I tell folks that sales tend

to hover around 96% of final list price. So, forget what it originally hit the market at or all the potential price drops along the way, but look solely at the price today. On average/median one can reasonably assume to get 4-5% off that. No, of course, some will be more and some will be less. A good market analysis will show you where a house should sell for and if it’s priced okay, well or poorly. A subsequent offer should work off a true market value more than a listing price….. but since it’s often asked…… it’s now answered.

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Mortgage Amortization

by Jim Ludes on February 10, 2014

in Buyers

Sample amortization table ($200,000 purchase with 20% down and a 4.25% interest rate)

Something to consider when purchasing a house is how much you will actually pay for it. This is explained to you at closing by your legal council, but if you read it here first, you will dull the shock factor. Amortization shows the percentage of your payment that is going towards interest and the part that is going toward principal (the amount you borrow). Let’s use round(ish) numbers on a pretend house. $200,000 for a place that you put 20% down on at a nice interest rate of 4.25%. Not concerning ourselves with taxes, insurance or association fees that would leave your monthly payment at $787.10. What we’re looking at though is how much of that payment is PAYING OFF your loan and how much is going to interest.

What you see in the amortization table (a full version available here) is that you will be paying off $220.44 of the loan in the first month (while paying $566.67 in interest for the privilege of being loaned the money). In the final payment, as logic would have it, you will pay $781.55 toward principal and only $2.78 in interest (assuming you paid once per month, only the minimum, every month for 360 months). At month 165 you will have the most even split. $393.63 to principal and $393.47 to interest is what you’ll pay three months shy of 14 years in. tarting with this payment, every month for the duration of the loan will pay more principal than interest.

Scarier than this is the total amount that you’ll pay! In borrowing the $160,000 remaining dollars (after the $40,000 is put down; 20% of $200,000) you will pay a total of $283,353.23! That’s the price of doing business. When you borrow- you have interest. Some people may believe that $160,000 times 4.25% is $6,800 in interest….sadly, this is not the case. There are ways to pay less and we can tackle them down the road.

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Interest Rates

February 3, 2014

In a meeting with Wells Fargo last week we were told to expect interest rates to average about 5.3 or 5.4% in the first quarter (Jan-Mar) of 2015. That’s a year away and not a terrible rate at all (I bought my house at a 6% years ago and, at the time, it was as [...]

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Agency

January 24, 2014

People you use to list a property with or buy a house from are real estate agents. But what IS agency? Agency refers to an individual with whom you’ve established a formal agency relationship. Someone that is looking out for you and your interests. This individual (often times referred to as your REALTOR) usually indicates [...]

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Will County Single Family Homes Available

January 14, 2014

Yesterday we saw the Will County types of home available and I made mention (yet again) that real estate is local. The numbers indicated there were county wide. Here, we’ll look at four municipalities within Will Co. These are the amount of single family detached homes available.

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Will County Resale

January 13, 2014

Will County has homes for sale. Lots. Taking a look at the non-new construction homes available (resales, or existing homes), this is the breakdown we see. Of 3,502 properties available,  60.37% are traditional sales, 12.99% are foreclosures and 26.64% are short sales.  That means about 60% (or 3 out of every 5 properties) of the [...]

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