Posts Tagged ‘chicago lofts’
Posted by michaelhulett in Loft Buyers Monday, 15 March 2010 09:22 No Comments
Effective February 1, 2010, the Federal Housing Administration (FHA) changed the condominium approval process, which may affect home buyers who are interested in using an FHA loan to purchase a condominium. These changes will speed up approvals in many cases. In addition, although some rules for property eligibility have been tightened up, others have been loosened to increase the number of properties eligible for FHA financing. Highlights of the changes for 2010 include:
Faster approvals. The new process for internal lender approval (DELRAP) could reduce the approval time significantly for most new and existing condominiums, although it may take longer in some cases.
Elimination of spot approvals. Condominiums will receive a decision on the whole project or legal phase rather than individual units.
Approvals no longer needed for detached condominiums. Buyers will be able to apply for financing under single family home requirements.
Changes in property restrictions. Changes in some requirements will make more properties eligible for FHA financing. Other changes increase restrictions on guidelines such as investor ownership and status of condominium fees.
Please contact our lending partner, Andrew Luett at Wintrust for more information: 773.303.0273 // ALuett@LuettMortgageGroup.com
Thanks!!
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Chicago lofts, Short Sales, Foreclosures, FHA, and the $8000 Tax Credit
Posted by michaelhulett in Loft Buyers Sunday, 24 January 2010 09:46 No Comments
If you’re looking to purchase your new loft this spring there are TWO things you need to be aware of:
1.) FHA spot approval ends this month. If you don’t have a case# by January 29th it’s no dice. See your lender for more info or contact our longtime lending partner Andrew Luett w/Wintrust Mortgage at ALuett@LuettMortgageGroup.com. It’s not the end of the world as you can as you can still get the entire building approved but it often takes longer. Also, make sure to coordinate that timeline w/ your lender if you qualify for the tax credit, see below.
2.) If you’re depending on the $8,000 credit (to see if you qualify check out our recent post: http://www.lofthunt.com/2010/01/extended-home-buyers-credit/) then you really need to be very careful if choosing a distressed property. If the property is already controlled by the bank such as a foreclosure or if it’s a bank approved short sale, then you can probably get by with a diligent effort and a good team (Realtor, Lender, attorney). If it’s a typical short sale, BE CAREFUL. These transactions can drag on for months on end with little to no resolution. So what’s the problem? Well to qualify for the tax credit you need to have the property under contract by end of April and close by end of June. Since the life cycle of a short sale can often push the 1 year timeline, it’s likely that many buyers will blow right past those dates this spring. So be aware, move forward carefully and as always- Live lofty.
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Overpricing your Chicago Loft… The Chain Reaction
Posted by michaelhulett in Loft Sellers Friday, 22 January 2010 22:38 No Comments
Many sellers make the mistake of trying to start high on pricing, hoping to sell their Chicago loft at the highest possible price, then assuming that they can lower the price down the road if the property does not sell. THIS IS A VERY INEFFECTIVE APPROACH. In fact, it’s highly counter-productive. Here’s why:
YOUR BEST SHOT AT A SALE IS IN THE FIRST 60 DAYS
We’ve all heard the saying, “you only get one chance to make a first impression”. The same goes for selling a loft- you only get one chance for a property to hit the market. This is where the property is first intoduced to agents and consumers alike. If you spend that time backpeddling from the wrong price you’ve virtually eliminated the chance to move forward into a contract. Months later when you realize that consumers rarely overpay, it will be too late.
YOU HAVE A REDUCED NUMBER OF SHOWINGS
A basic rule in selling is to generate consistent showings for the property. With little activity, your chances of selling the property reduce dramatically.
MANY BUYERS WON’T EVEN KNOW ITS THERE
Since most buyers typically look within a specific price range, you are excluding potential candidates by pricing above their interest level. Sometimes the smallest price adjustment can open your loft up to a significantly larger pool of buyers.
SELLERS ALWAYS ASK “WON’T BUYERS ATLEAST MAKE AN OFFER?”
At first glance this seems like sound logic. In reality, overpriced listings deter buyers from further interest in the property because they mentally “move past it” thinking their offer and efforts would be in vain since they’d offer a much lower price anyway. That lower price as it turns out is typically a more accurate measure of its true market value. In the end it has the exact opposite effect as intended.
OVERPRICED LOFTS SELL THE COMPETITION
If you’re a seller, the best thing that can happen to you is overpriced competition. It makes your property seem like a great deal! So why would anyone want to help sell their competition?
THE CHAIN REACTION… YOU MISSED THE BEST CHANCE TO SELL IN THE FIRST 60 DAYS, EVENTUALLY THE LONGER MARKET TIME CREATES BUYER HESITATION, LOWER OFFERS, AND A WEAKENED POSITION DURING NEGOTIATIONS.
Once buyers realize a property has been on the market for a long time TWO things immediately come to mind. 1.) What’s wrong with this place? 2.) They must be getting desperate! In addition, as trivial as it may sound during the pre-listing process, please don’t underestimate the frustration associated with long market times. It’s a significant amount of work to properly prepare and continuously maintain a home for sale.
It is imperative that the price is thoroughly researched with comparable properties in the area. Additional factors such as competition and the state of the current market also play a large role in pricing. If your property is priced correctly, you’re taking the foremost step in avoiding long market times and a weakened position at the negotiating table.
