Real Estate Information Archive

We are veterans of the bitter-cold Chicago winter. Meteorologists are predicting a milder winter for this year, but there are always additional steps we can take to make sure our home is warm, safe, and prepared for the icy snow and wind. Below is a checklist you will find resourceful:

• Inspect your fireplace: The fireplace should be professionally inspected once a year and cleaned if necessary.
• Replace furnace filters: This will improve airflow and improve the efficiency of your home's heating system.
• Place a mat next to entries: Protect your hardwood floors from mud, snow, and salt with this easy step.
• Seal any windows with cracks: By preventing cold air from entering the house, you'll see major savings in utility costs.
• Clean out gutters and downspouts: This will prevent the formation of ice dams.
• Inspect your smoke alarms: Clean the dust from the cover and replace batteries.

For every action, there is an equal and opposite reaction. Though you might feel worried about the housing market as a homeowner, there is also a lot of hopeful news. My job is to highlight the good news to you.

The National Association of Realtors noted that new residential construction is down by 31.1% compared to September 2007 (NAR, Oct 2008), so this means that there will be a decrease in the overall supply of new homes in the market. What does that mean for you as a homeowner? With less homes in the market, the value of your home is less likely to be negatively impacted.

Real estate is still a great investment, even if we are experiencing a rocky road as the market is correcting itself. In spite of the negative news that surrounds us, I want to emphasize that homes are selling--they may be taking longer than usual, but they are selling.

Marlene Bass, Broker, REALTOR(R), Coldwell Banker Residential Brokerage (Northbrook), was recently honored to receive an invitation from Dr. Tom Sultan, a Wellness Medical Associates Internist, to be a guest speaker at a seniors seminar being held in the conference room at Glenbrook Hospital (Glenview) on Wednesday, November 5th. 

"Shaping Our Futures...Where Do We Go From Here?” focuses on the needs of seniors hoping to extend their vitality and maintain the ability to remain in their current homes, living independently as long as possible.  Various community organizations will make brief presentations related to future health and social needs of seniors.  Representative of local real estate industry professionals, Ms. Bass will compare and discuss current real estate market conditions and how they are affecting our local communities, especially as it all relates to senior living. 

For many individuals, as they approach a point in their lives when uncertainty about the future becomes more defined, facts and information, as well as a positive support system, can mean all the difference in the world as far as choices and preparedness. Supporters at the seminar will offer information and assistance that will make life simpler and issues clearer to seniors facing crucial and life-altering decisions, housing, relocation, health/critical care, as well as other issues.

For the scheduled time and more information about the seminar, please contact:

Marlene Bass, Broker Associate, REALTOR(R), ASP, CRS, e-PRO(R), GRI, SRES
Coldwell Banker Residential Brokerage
1330 Shermer Rd
Northbrook, IL 60020
PH: (847) 209-9880

Wellness Associates
2150 Pfingsten Rd # 2250
Glenview, IL 60026 
PH: (847) 729-2320

All around Chicagoland, a deep hue of gold and red are coloring the trees. The Windy City is living up to its name more and more, prompting us to bring out those gloves and scarves from their slumber in the back of our drawers. As we approach the end of October, we're also anticipating Halloween, a day that makes us excited at the thought of costumes, Jack-o-Lanterns, pumpkins, scary stories, and trick-or-treating.

By the way...do you know how trick-or-treating began? Back in England, there was a holiday called "All Souls' Day," in which the poor would go from door to door, asking housewives for a treat called "soulcakes" in exchange for protection against bad luck. Many children also started knocking on doors, eager to receive cakes, apples, candy, or bread. As time passed, the children started to say "Trick or treat!" and played practical jokes on housewives who refused to give them anything. So make sure you have treats ready for this year.

Happy Halloween!

The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time homebuyers. Call everyone you know who wants to buy their first home (or who hasn’t owned one in three years), this is too good to miss – it’s a $7,500 tax CREDIT (not deduction but a credit).

If you have not owned a home in three years, you qualify as a first time home buyer. If you buy a home after April 9, 2008 and before July 1, 2009, you qualify for this credit. Call your friends who just bought a home since April 9th and tell them they may take $7,500 off their tax bill if they qualify. It has to be your principal residence, so rentals do not count.

The tax credit is 10% of the cost of the home, up to a maximum of $7,500. This is not an additional deduction that lowers the amount of income to be taxed, it is a tax credit. In other words, you take $7,500 off your tax bill. But there is a catch; the credit you receive now is actually an interest-free loan that must be repaid.

The loan has no interest, and will be paid back over 15 years. You get the credit on your 2008 taxes, but you start paying it back on your 2010 taxes that are due in 2011, so you get at least two years without a payment. You pay back 6.67% of the credit each year, so for a $7,500 credit the payment is $502.50 per year. If you stay put for 15 years, you pay it off with no interest.

What happens if you sell the house? You pay the balance back at the closing. So, you get $7,500 now, and pay the rest of it back if you make money on the sale of your house. What happens if you do not make enough money when you sell your house? They forgive the rest of the debt.

Other restrictions stipulate that you have to buy your first house in three years before July 1, 2009, not have super high income, not use bond financing and buy anywhere in the US.

If you'd like to learn more about this program, please call me!

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you’ve missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.