What?!  How could I possibly utter such nonsense?  Of course you want to buy an REO!  They are the best priced homes in real estate right now!!!

Yes, but most of the time when you figure in the cost of the repairs, you might as well keep on looking.

Of course there’s the off chance that the property is actually in decent shape, in which case you and about 10 other people will have offers in on the house.  Then you’ll have to wait until the feeding frenzy is over to find out if you are the one who wins the bid on the property.

Alright, alright.  I’m being really pessimistic here, but the reality is… if you’re going to do it, do it right!

If you want to buy an REO to live in and you are not an investor or a cash buyer there are several important steps to take and scenarios to consider:

• If the property needs repairs and you are obtaining an FHA loan, certain FHA provisions may prohibit the sale such as broken water pipes and mold.
• If the property is priced below market value and there are minimal cosmetic repairs don’t low-ball and offer on the property if you really want to purchase it.  There are probably multiple offers on the home and the highest most qualified offer will be the one that gets the house.  Banks are less likely to negotiate on the price once they have it back in their possession.  The REO agent has already priced it for a quick sale.  Short sales, well they are a different story…
• The cost of some of the repairs may actually cost you more than the discount on the house, like replacing kitchen cabinets and carpeting.
• There are no disclosures provided by the lender and it’s pretty much a “buyer beware” scenario.
• Some lenders do not allow property inspections as a contingency to the contract.

If you are thinking of buying a distressed property in Plainfield IL or the surrounding area, call me at 630-673-6233.  The agent you use to represent you in the sale of a bank owned home can make or break your chances of getting your foot in the door!

Julie Ferenzi | Realtor®
Plainfield IL Homes
630-673-6233

On November 6, 2009, legislation was passed that extends and expands the tax credit given to those purchasing a home for the first time, and also to long time homeowners who are purchasing a replacement primary residence.  It also raises the income limitations previously set for homeowners seeking to claim the credit.

Anyone that qualifies for this tax credit needs to enter a fully binding contract by April 30, 2009, and close on their new home by June 30, 2009. I am unclear as to how the “fully binding contract” will come into play with short sale contracts since they are not fully binding until they have bank approval… I’ll have to see about getting more info about this from my short sale negotiator.

The tax credit has done a lot to bring a lot of first time home buyers over the fence in Plainfield IL this fall.  These are buyers that had been waiting to see what the market was going to do, and the previous deadline of closing by November 30, 2009 has been the motivation to move quickly toward the end of September.

I have 3 closings this week, and all 3 of my buyers are taking advantage of the first time home-buyer credit!  Real estate typically slows down in the winter months, so it would great if we see this momentum throughout the end of 2009 and into 2010.

If you are looking for a new home in Plainfield IL or a surrounding area, call me at 630-673-6233.  I’m a full time Realtor who knows the Plainfield IL home market.    I can help you find your new home both in Plainfield IL or a surrounding area community in plenty of time to take advantage of the tax credit!

Julie Ferenzi | Realtor®
Plainfield IL Homes for Sale
630-673-6233

The Plainfield IL home sales for the last 30 days from April 15th, 2009 through May 15th 2009 are now more than 50% short sales or foreclosure sales.

That’s great news for buyers… but it’s bad news for the economy and the real estate market in general.  It means things aren’t getting any better for homeowners in foreclosure, and homeowners who are current on their mortgages are losing the value of their homes at warp speed.

42 of the 82 homes sold were either foreclosed or bank owned homes, or short sales.

The price of homes sold in the last 30 days ranged in price from $119,000 to $430,255.  Surprisingly the home that sold for $119,000 wasn’t actually a distressed property.  It was a small 2 bedroom ranch, sold by a motivated seller.  The bulk of the short sale and bank owned properties that sold were definitely in the lower end of the price range, and the homes that sold in the higher price brackets were regular residential home sales, which makes sense.

Buyers have a great opportunity to purchase a lot of home for the money in Plainfield IL right now.  The downside to making an offer on a bank owned home or a short sale listing is that there are often multiple offers on these homes, (especially the ones in great condition) and the wait time on a response for a short sale can take anywhere from 4-10 weeks to get approved.

There is definitely an upside to buying a foreclosure or short sale is priceless in a market like this.  Buying below market value, while prices are still declining, offers a little more protection from depreciation than paying retail prices.  The biggest difference will be in the amount of work you may need to put into the house to make it compare to some of the retail priced homes.

If you want to buy a home in Plainfield IL and are interested in purchasing a short sale or bank owned home, call me at 630-673-6233.  It’s important to work with an agent that not only has performed short sales, but understands the process involved.

Call me at 630-673-6233 and I can put you in touch with my mortgage broker who can help you determine what kind of a loan you qualify for.

Julie Ferenzi | Realtor®
Plainfield IL Homes for Sale
630-673-6233