How Will Rising Interest Rates Affect You?

Interest rates have recently gone up, making homes more expensive for homebuyers. Here’s what this rise in rates means to you and why it’s actually a good thing.

Looking to buy a Chicago home? Get a Full Home Search

Selling your Chicago home? Get a Free Home Price Evaluation

The Federal Reserve recently announced another interest rate hike. What does that mean for homebuyers in the Chicagoland area?

For one, the cost of money will be a bit higher. It will cost a little more to get your dream home, and your monthly payment will be a little higher. However, this rate increase is due to our improving economy. Job and economic growth are at their highest level since 2008, and the fact that rates are going up is actually a good thing.

Although rates are up, economic growth and job growth are too.

We expect rates to go up at least once more this year. Although this will make homes even more expensive, keep in mind that rates will still be very low, historically speaking.

If you have any questions for us about interest rates or anything else relating to real estate, give us a call or send us an email today. We look forward to hearing from you soon.

The Do’s and Don’ts of Flipping a House

Today we’re going over the do’s and don’ts of home flips to help ensure your rehab project goes smoothly.

Looking to buy a Chicago home? Get a Full Home Search

Selling your Chicago home? Get a Free Home Price Evaluation

There are many do’s and don’ts when it comes to flipping houses, and if you’re thinking about taking on a flip, you need to be aware of them.

The Do’s:

• Do hire the right people. Make sure you don’t have a contractor or a site manager that will take advantage of you and your resources. 
• Do secure your financing ahead of time. Make sure you not only have the cash to buy the house, but also to pay your workers throughout the duration of the flip and cover unexpected costs. 
• Do pay attention to the market. Look at the area to see what the return on the investment will be. 
• Do pay attention to the neighborhood. Buying a home near schools and shopping centers will attract more buyers post-flip. 

Buying a home near schools and shopping centers will attract more buyers post-flip.

The Don’ts:

• Don’t ignore red flags. For example, make sure the property doesn’t have mold, or if it does, be prepared to deal with it. You also need to be on the lookout for any structural issues. 
• Don’t go ‘too big’ on your first project. You want to make sure you can cover all the costs as well as maintain your personal life. 
• Don’t do the bare minimum. You won’t make any money by simply repainting and putting in new carpet. 
• Don’t blow your budget early. Make sure you watch your budget closely and keep your emotions from influencing purchases or financial decisions. 

If you have any questions, feel free to give us a call or send us an email. We’d be happy to help you! 

When Does the Chicago Spring Market Really Start?

Usually the spring market starts in late March or early April. This year, however, the spring market will be here much, much sooner.

Looking to buy a Chicago home? Get a Full Home Search

Selling your Chicago home? Get a Free Home Price Evaluation

When does the spring real estate market actually start?

In general, the real estate market begins in late March or early April. However, it’s 70 degrees out there in Chicago. Since the winter has been so mild, the spring market will begin in the next week or two. 

In other words, if you’ve been thinking about putting your home on the market, now is the time to do it.

Now is the time to put your home on the market.

There are a ton of buyers out in the market right now because interest rates are expected to go up on March 15th. They want to make their move before that rate hike happens.

That said, inventory is extremely low. Compared to January 2016, January 2017 saw a 14% drop in inventory. While this is frustrating for buyers, this is good news for sellers because demand is strong and you won’t have much competition.

If you have any other questions about the spring real estate market or about selling your home, give us a call or send us an email. We would be happy to help you!