The 6 Hidden Costs of Selling in Chicago

When you sell your home, there are six hidden costs that you need to look out for that can impact whether or not it sells. I’m joined again today by David Bowen of imortgage for assistance with today’s topic.

1. Repairs: If you’ve allowed the home’s maintenance to lapse, you might need a handyman or contractor to tidy things up and make sure the home is pristine and ready to show.
2. Landscaping: Trees should be trimmed and the yard mowed and maintained. You might need to hire a maintenance crew if you’re vacating before selling. Curb appeal is the first impression on the buyer, and research shows that good curb appeal can increase the home’s value by 12%.
3. Staging the home: In the higher price ranges especially, stagers can tighten everything up and make sure the buyer is able to walk in and visualize where their furniture will go and how they’ll live in the space.
Sellers have closing costs of around 2% of the purchase price.
4. Utilities: You don’t want the gas, water, or electric turned off if you vacate, as the home still needs to show well and be operational.
5. Photography: Since 90% of home buyers start their search online, photos make a valuable impression on buyers and whether or not they’ll go see it. Hiring a professional is important here.
6. Closing costs: Sellers have closing costs normally in the range of 2% of the purchase price in the form of transfer taxes, property taxes, an attorney fee, title expense, brokerage commissions, and specialty inspections such as the termite inspection.

If you have any financing questions for Dave, you can call him at 708-705-7911 or email him at Dave.Bowen@imortgage.com. If you have any further questions about real estate, please don't hesitate to reach out to me. We look forward to hearing from you! 

4 Components of Your Mortgage and How to Reduce Them

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Today I’m joined by David Bowen from imortgage to discuss PITI and how to reduce it.

PITI stands for the four components of your mortgage payment: ‘P’ stands for principal, ‘I’ stands for interest rates, ‘T’ stands for property taxes, and the last ‘I” stands for homeowner’s insurance.

Though your principal and property taxes are two components you don’t have much control over, you can keep in contact with your assessor’s office to make sure that you are receiving all of the tax exemptions available to you. You may even be able to get your property taxes reduced based on factors like your income and whether you’re a senior citizen or veteran.

As far as homeowner’s insurance, you can always contact your agent to find out what you can do to get your rate reduced. David says that he contacts his agent every year to review his policy. Changing companies from time to time can reduce your insurance payment as well.

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One extra payment per year can cut eight years off of a 30-year loan.

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Some other ways to reduce your PITI are to pay extra money down on your principal balance, which can speed up your timeframe. If you make one extra payment a year, you’ll probably cut eight years off of a 30-year mortgage. If you are able to bring your balance down, it may even be possible to refinance your 30-year mortgage into a 15-year mortgage.

If you pay your principal in cash, you can avoid the first two components of PITI, but property taxes and insurance are required and can’t be avoided.

If you have any questions regarding PITI, feel free to contact David Bowen at dave.bowen@imortgage.com or (708) 705-7911, or myself by phone or email. I look forward to speaking with you.