PANTAGRAPH

More documents

Recommendations

Info

18 Pantagraph HOME MARKET, Friday, January 4, 2013 NATION'S HOUSING MARKET TO CONTINUE STRENGHTENING IN 2013 Home sales and prices are expected to keep rising in most areas in the year ahead, but mortgage rates are likely to climb too. DEAR MR. MYERS: We have wanted to buy a home for the past two years, but have been waiting for prices to bottom out. Home values in the areas that we have been shopping in have climbed a little bit in the past few months, but we're worried that it's just a temporary "blip" that will end soon and that prices will start going down again. How do you think the housing market will do in 2013? ANSWER: Sales and prices fluctuate from one area to the next based on a variety of factors, ranging from national mortgagerate trends to the state of both the U.S. and local economy. But housing markets in some parts of the country began showing new signs of life last spring, and all indications are that many more markets will begin a full-fledged recovery in 2013 from the housing bust that began about six years ago. I'm devoting this entire column to answering some common questions that readers have recently asked about the housing market in the upcoming year. Q: How can you be so positive about the market, considering that there are so many homes for sale and so many others in foreclosure? A: Actually, there really aren't that many homes for sale. There were a relatively modest 2.03 million homes on the market at the end of November, according to the National Association of Realtors, which equates to a 4.8-month supply based on current sales rates. That's the lowest supply level since the boom days of 2005. Foreclosures indeed are still holding back some markets because their offering prices are so low. But the foreclosure rate has been slowing, and should continue to fall in 2013 as more people find new jobs or finally are able to refinance at today's lower mortgage rates to save their homes. Fewer foreclosures will help keep the supply-and-demand balance in check, which in turn will add more fuel to expected price gains. Overall, about 4.6 million homes were sold in 2012. The National Association of Realtors forecasts that purchases in the year ahead will climb about 9 percent, to 5.1 million. Q: How much will prices rise? A: Again, it depends primarily on the state of the economy where you live and, to a lesser extent, the number of local homes for sale. Price forecasts vary among trade groups and private-sector research companies. Economists at Standard & Poor's and the Realtors trade group are each calling for an average gain across the U.S. of about 5 percent in 2013. Researchers at lending giant J.P. Morgan Chase & Co. foresee a minimum 3.4 percent price increase, but say the average home value could surge as much as 9.7 percent if the economy meets the bank's most bullish growth projections. Q: Which parts of the country will do best in the coming year? A: Real estate information and services giant Trulia.com says the best price gains likely will be in areas with high job growth, low apartment vacancy rates (which encourage more renters to become homeowners) and a low number of foreclosures. Its top-10 list of best markets for 2013 includes four cities in Texas -- Houston, San Antonio, Austin and Fort Worth. Rounding out Trulia's list are San Francisco; Seattle; Omaha, Neb.; Greater Bethesda, Md., and Peabody, Mass. Q: Where are mortgage rates headed? A: Most experts agree that they'll go up, but not by much. www.PantagraphHomeMarket.com Rates on 30-year fixed-rate loans currently stand at about 3.5 percent for so-called "conforming" loans of $417,500 or less, according to the Mortgage Bankers Association. Economists at the trade group predict they'll rise to 3.9 percent in the first quarter of 2013, and hit 4.4 percent by the end of the year as the economy slowly picks up steam. A roughly one-percentagepoint increase over the coming year would add about $77 to the monthly cost of a $150,000 mortgage. But ironically, a rate hike actually could fuel the expected upswing in sales and prices by creating a "sense of urgency" among consumers who have been sitting on the homebuying fence. The expected rate hike also serves as a reminder that homeowners who haven't yet refinanced at today's record-low rates should start filling out their loan applications sooner rather than later. 20496146 Check rates daily at http://pantagraph.interest.com OPEN HOUSE Day Time Address Price Agent Phone SUN 12-2 2815 ALANA WAY, BL $484,900 BRAD ROPP (309)275-1580 SAT 10-12 1903 WOODBINE, BL $379,900 DON SUTTON (309)275-0700 SAT 1-3 4 TANGLE OAKS, BL $239,900 GREG GRIFFIN (309)275-6705 SAT 1-3 101 DOVE CT, HUDSON $239,000 BARB WOODS (309)262-6210 SAT 10:30-12 25506 E. 1200 NORTH RD, ELLSWORTH $189,900 EMILY ALMEIDA (309)826-0672 SAT 1-3 402 N. LINDEN, NL $149,900 MARY LOU GOLD (309)287-3148 LENDERS, TO PARTICIPATE IN THIS FEATURE CALL BANKRATE.COM @ 800-509-4636 20496129 Legend: The rate and annual percentage rate (APR) are effective as of 12/28/12. © 2012 Bankrate, Inc. http://www.interest.com. The APR may increase after consummation and may vary. Payments do not include amounts for taxes and insurance. The fees set forth for each advertisement above may be charged to open the plan (A) Mortgage Banker, (B) Mortgage Broker, (C) Bank, (D) S & L, (E) Credit Union, (BA) indicates Licensed Mortgage Banker, NYS Banking Dept., (BR) indicates Registered Mortgage Broker, NYS Banking Dept., (loans arranged through third parties). “Call for Rates” means actual rates were not available at press time. All rates are quoted on a minimum FICO score of 740. Illinois Mortgage Licensee. Conventional loans are based on loan amounts of $165,000. Jumbo loans are based on loan amounts of $435,000. Points quoted include discount and/or origination. Lock Days: 30-60. Annual percentage rates (APRs) are based on fully indexed rates for adjustable rate mortgages (ARMs). The APR on your specific loan may differ from the sample used. Fees reflect charges relative to the APR. If your down payment is less than 20% of the home’s value, you will be subject to private mortgage insurance, or PMI. Bankrate, Inc. does not guarantee the accuracy of the information appearing above or the availability of rates and fees in this table. All rates, fees and other information are subject to change without notice. Bankrate, Inc. does not own any financial institutions. Some or all of the companies appearing in this table pay a fee to appear in this table. If you are seeking a mortgage in excess of $417,000, recent legislation may enable lenders in certain locations to provide rates that are different from those shown in the table above. Sample Repayment Terms – ex. 360 monthly payments of $5.29 per $1,000 borrowed ex. 180 monthly payments of $7.56 per $1,000 borrowed. We recommend that you contact your lender directly to determine what rates may be available to you. To appear in this table, call 800-509-4636. To report any inaccuracies, call 888-509-4636. SAT 12:30-2 1040 EKSTAM, UNIT 205, BL $88,900 EMILY ALMEIDA (309)826-0672 www.KELLERWILLIAMSBN.com KELLER WILLIAMS REALTY BLOOMINGTON/2401 E EMPIRE ST, SUITE B/BLOOMINGTON, IL 61704/P:309.834.3400 EACH KELLER WILLIAMS OFFICE IS INDEPENDENTLY OWNED AND OPPERATED.
www.PantagraphHomeMarket.com Pantagraph HOME MARKET, Friday, January 4, 2013 19 HOW TO SELL A HOME WITH A TENANT IN IT Michele Lerner Bankrate.com If you rented out your home to a tenant instead of selling the house during a slow market, you might be ready now to put it on the market. The effort to sell a home can be complicated by the presence of a renter. While many real estate agents recommend waiting until your lease expires and selling your home without a renter in residence, not all landlords can afford to have their home vacant for a few months during the transition. In addition, local regulations can impact the process of selling an investment property. “The first thing any landlord should do is to check out the local tenant-landlord rules,” says Patricia Kennedy, an associate broker with Evers & Co. Real Estate in Washington, D.C. “The rules vary from one jurisdiction to another. For instance, in D.C., tenants have the right of first refusal when a home goes on the market and again when an offer comes in.” Kennedy suggests that homeowners start the sales process by communicating clearly with the tenants and asking if they want to buy the home. Ben Hoefer, a Realtor with John L. Scott Real Estate in Seattle, says, “There are some exceptions and some great tenants that keep a place in good condition and are cooperative. But in general, having a tenant can have a negative impact on a home that’s on the market. Normally, the home drops in value because of the condition of the home and the lack of access for agents and prospective buyers.” Kennedy says many real estate agents are reluctant to show buyers a tenant-occupied home because they expect resistance to allowing visitors into the property and assume the condition will be less than optimal. “Smart tenants can hold up a sale for as long as year if they don’t want to move,” she says. Selling a vacant home has some drawbacks as well, including a lack of rental income while the home is on the market. “An empty home can be staged with some furniture and plants,” says Donald Marcy, a Realtor with Coldwell Banker Residential Brokerage in Madison, N.J. “The bigger issues are the lack of income and the fact that the homeowner will have to pay utilities. Depending on the location of the home, there may also be concerns about security and about things like pipes freezing.” For those homeowners who do choose to sell with a tenant in residence, Marcy says landlords need to communicate clearly and try to get the tenant to cooperate. “It’s one thing if the tenant already wants to move, but a tenant who doesn’t want to move can be hostile,” Marcy says. “The owners need to explain what they are doing and why, and they need to set up a protocol for how and when the home will be shown.” Marcy says tenants should be told the keys won’t be just handed out to anyone who wants to see the place, and that an agent or the owner will accompany prospective buyers. Anyone who has sold a home knows the stress involved with keeping the home constantly neat and clean, along with vacating whenever a buyer wants to see it, but at least homeowners have the incentive of making a sale. Realtors suggest providing an incentive to tenants to get them to cooperate. “Money always talks,” says Liz Sidorowicz, a broker with Re/Max Signature in Chicago. “You can offer to give the tenants 50 percent off their rent for a month if they’ll keep the place clean and let in prospective buyers and their agents.” Marcy recommends offering something such as a gift certificate for dinner for two during each month the home is on the market. “You need to ask the tenants to keep the beds made and dishes out of the sink, but you also need to remind them to keep cash, jewelry, firearms, prescription drugs and anything embarrassing out of sight of prospective buyers,” he says. “Giving them some type of incentive should encourage them to cooperate with buyers.” Kennedy says reassurances about the safety of the tenants and their belongings should be given along with an incentive such as a rent rebate at settlement. “Landlords need to recognize that the tenants see the property as their home, not a commodity,” she says. Hoefer recommends offering a free hotel room for the renters on the weekend of an open house or some other perk that might make life easier for them. “Rental rates have gone up in many areas, so offering to pay the difference in rent for a couple of months or finding them a rental agent and providing recommendations can also encourage cooperation,” Hoefer says. Interest Rates are Low Call today to refi nance or purchase a home! OPEN SUNDAY 12-2 MORTGAGE SERVICES III, LLC Located in First State Bank--Corner of Hershey Rd. and Eastland Dr. Suzi Nafziger (309) 275-7899 Mark Kimmerling (309) 826-7730 Dave Usiak (309) 825-2709 Bob Siebert (309) 825-2628 Grant Bellis (309) 275-LOAN Deeda Williams (309) 825-1782 309-664-9100 Apply Online! www.mortgageservices3.com Mark Larsen (309) 664-7037 Keith W. Thompson (309) 275-1179 Mortgage Services III, LLC A Subsidiary of First State Bank Member FDIC 20495955 2815 Alana Way • $484,900 Stunning new construction, 2 story home in the prestigious Royal Links Subdivision. This 5 bedroom 4 1/2 bath home 3,900 sq/ft fi nished features a custom kitchen, 4 season room, exclusive master suite with custom master bath and oversized walk-in closet, large main fl oor laundry, large mudroom with bench seat and lockers, fi nished basement and much more. Fully landscaped. Please contact us for further details. Brad Ropp BradR@johnston-builders.com Brad Ropp 275-1580 Bill Johntson 275-1579 20495961
Page 1 and 2: January 4, 2013 McLean, DeWitt, Liv
Page 3 and 4: www.PantagraphHomeMarket.com Pantag
Page 9 and 10: Vernon Dogwood Rutledge Rd Susan Dr
Page 11 and 12: M cC u n t l S Denv er St l Sta te
Page 14 and 15: 14 Pantagraph HOME MARKET, Friday,
Page 16 and 17: 16 Pantagraph HOME MARKET, Friday,
Page 20: 20 Pantagraph HOME MARKET, Friday,

PANTAGRAPH

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?