Looking for a New Home? Check Out All That Historic Bronzeville Has to Offer

We’d like to welcome you to the Bronzeville community.

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We’re standing here today in one of my listings in the Bronzeville community, which starts as far north as 26th Street and extends south as far as 48th Street. Bronzeville consists of the Douglas community as well as Grand Boulevard.

There is a lot of elegance and history behind Bronzeville. For example, jazz musicians and famous music producers like Quincy Jones grew up here. 

That’s not to mention the location: Bronzeville is essentially smack-dab in the center between Lakeshore Drive and Guaranteed Rate Field, which is right off 35th Street on the other side of the Dan Ryan Expressway (not even a mile from here). It only takes about 15 minutes to get to the Downtown area, and the public transportation makes it very easy to get into the city of Chicago.

There is a lot of elegance and history behind Bronzeville.

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There is a ton of new construction in the area, as well as residential and commercial properties. You’ll find plenty of great schools, restaurants, and shopping districts in the area—you just can’t beat the placement of this amazing community.

Bronzeville is a great alternative for buyers from the northside or the loop area looking for a little more space for their families.

The community has gone through a lot of changes over the years, and right now, it is booming. Home values are getting better and better each and every year, and it’s easy to find great opportunities here.

If you have any additional questions or are looking to buy or sell a home in Bronzeville, please reach out to us. We’d love to help you take the next step toward your real estate goals.

Happy Holidays From Our Team to You

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Today we want to wish you the happiest of holidays, and to say thank you. It’s been another great year, thanks to our clients, family, and friends. Over 50% of our business is coming from loyal, supportive people like you and your referrals to us. We couldn’t do this without you. If you have any questions over the holidays, feel free to give us a call. We’d be happy to help you. Until then, have a wonderful holiday season.

Follow These 7 Tips to Keep Your Vacant Listing Safe

Following these tips will deter burglars, keep your home in good shape, and prevent any potential issues from evolving into something more severe.

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When putting a vacant property on the market, there are certain additional considerations the seller must keep in mind during the listing process. Today we’ll cover seven such considerations, focusing specifically on home security: 

1. Have a security system in place. If you’re unable to keep an eye on your property, yourself, having a doorbell camera doing the job for you can be a good idea. 

2. Have a friend or neighbor drop in from time to time. Doing so will lower your risk of 
break-ins. 

3. Check the mail (or have someone do it for you)

To make sure the building is insured, you can ask for a copy of its insurance certificate.

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4. Turn off your newspaper delivery 

5. Make sure the landscaping is maintained. 

6.  Keep all of the blinds closed. 

7. Check on the property after storms.  

Following these tips will deter burglars, keep your home in good shape, and prevent any potential issues from evolving into something more severe. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What to Know Before Buying a Condo

If you’re thinking of buying a condo, there are six things you need to know first.

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Did you know that between the South Loop, Downtown, Gold Coast, and the West Loop, there are almost 2,400 condos for sale? Before you buy one of these condos, here are six things you need to know:

1. How the condo association is being run. For example, who’s the president? Who’s the vice president? Who’s the treasurer?

2. How the condo association’s budget looks. It might look like it’s being run well, but you should ask to see a copy of the budget and its records for the past two years. You need to make sure they’re putting enough money away for reserves (normally, 10% of the budget should be cash reserves). If they don’t have enough, you have to pay a special assessment, which can be very expensive. 

3. What the delinquency rate is. How many of the owners are behind on their dues? How many of the condos have foreclosed? Hopefully that number is close to zero. 

To make sure the building is insured, you can ask for a copy of its insurance certificate.

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4. Whether the building is insured or not. To make sure the building is insured, you can ask for a copy of its insurance certificate. 

5. Whether there are a lot of absentee owners in the building. How many renters live in the building versus actual owners?

6. Whether there are any lawsuits against the condo association. 

If you have any other questions about this topic, don’t hesitate to call or email us anytime. We’d be glad to help you. 

A Quick Look at What the Gold Coast Has to Offer

What does the Gold Coast have to offer? Let’s find out.

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The Gold Coast community is absolutely beautiful, and we wanted to share a little information about it with all of you today. 

Between the Oak Street Beach, the many area restaurants, and the plethora of entertainment opportunities, the Gold Coast has a lot to offer.

There’s something for everyone here on the Gold Coast.

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Even the market statistics for this area reflect its incredible growth. Though sales volume is down, the average sales price has risen 7% since this time last year. And with units available for purchase from $500,000 all the way up to $5.3 million, it’s clear to see that there’s something for everyone here on the Gold Coast. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Chicagoland Market Outlook for Fall 2018

The Chicagoland real estate area is starting to shift away from a seller’s market. Keep reading to find out how.

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The weather is colder, the leaves are changing, and fall is here. People out there want to know what this means for the real estate market, so today we're excited to share our fall 2018 market outlook with you. 

We are starting to notice an increase in the number of homes for sale. At one point, we had around three months’ worth of inventory, but that number has jumped up to about four or 4.5 months’ worth today. Although we’re still in a seller’s market, we are starting to trend more toward a neutral market where neither buyers nor sellers have an advantage.

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We are starting to trend more towards a neutral market.   

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In the mortgage world, we’re still seeing signs of this shifting market as well. There are fewer multiple offer situations out there and not as many buyers in the market. This is making things easier for buyers and helping them win a great home without overpaying.

The good news about our current market is that it’s perfect for anyone who is thinking about buying a home, selling a home, or getting a mortgage. If buying or selling is in your future or if you just have any questions, don’t hesitate to reach out to us via phone or email today. We look forward to hearing from you soon.

The Effect of Rising Interest Rates on the Market

Interest rates rose again. How will this affect our market?

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On September 26 interest rates went up again—this time by 0.25%. This time by a quarter of a percent. Today we will be discussing how this recent rate change will affect the real estate market.

David says that he doesn't think it will have much of an impact, because this change comes as no surprise. Since so many people saw this coming, he believes that it was already worked into the mortgage market in terms of rates. However, we may still see a slight fluctuation. If the Fed does something surprising, though, then we'll see a change.

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The rising interest rates won't affect the market because it isn't a surprise.   

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Rates, of course, do affect other things, such as credit cards, instantly. They also affect car loans. So, over the long-term, the rising cost of credit could affect the mortgage market.

We still do expect one more rate increase this year in either November or December.

If you have any questions about this, please feel free to reach out to us. We would be happy to help.

Should You Hire a Mortgage Banker or a Mortgage Broker?

Should you work with a mortgage banker or a mortgage broker during your real estate transaction? Let’s discuss each of these options.

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What is the difference between hiring a mortgage banker versus a mortgage broker? 

Actually, when it comes time to seek the guidance of a mortgage professional, there are pros and cons of either option.

A mortgage broker’s job is to find someone to buy a specific loan. All of the funding for the real estate deals they finance will come from the particular company whose loan product they’re representing. 

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When working with this kind of a professional, you can be sure that everything is done in-house.   

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A mortgage banker, on the other hand, funds and processes everything themselves. When working with this kind of a professional, you can be sure that everything is done in-house. Mortgage bankers allow you to have more control throughout. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What Is a Closing Statement?

Today we'll be discussing what a closing statement is.

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Previously called the HUD-1, the closing statement is a document presented to borrowers at least three days before closing. This way, they can consent to the terms, and there won't be any surprises at closing.

This new document—unlike the HUD-1, which showed up at closing—avoids any surprises by allowing an attorney to review and answer any questions the borrower may have. While it is encouraged to have an attorney, sometimes mortgage loan officers like David can also help.

On the document, buyers can find their expenses and credits, including their different closing costs and seller or tax credits. These figures are reviewed by the title company with an attorney to make sure that they are calculated correctly.

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Previously called the HUD-1, the closing statement is a document presented to borrowers at least three days before closing.   

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Of course, the seller's expenses are all listed as well, including title expenses, mortgage payoff, surveys, termite inspections, as well as revenue stamps for Cook County, the State of Illinois, or the City of Chicago. Since it will tell them how much to make the check out for, the end of the statement is highly important for the seller.

Depending on the state or county that you're in, there may be different guidelines in terms of how much money—or how large of a cashier's check—you can bring in. If it exceeds a certain amount, you'll typically have to wire the funds to the title company. Go directly to your title company for any wiring information.
If you have any questions about this, please feel free to reach out to us. We look forward to speaking with you soon.

These 3 Questions Are the Key to Choosing the Right Agent to Sell Your Home

When interviewing agents as you prepare to sell your home, there are three important questions you should ask them.

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The Realtor you trust to guide you through the listing process will have a significant impact on your success. Therefore, there are three key questions sellers should ask agents before making the decision to work with them.

1. “How much is my home worth?” The right agent will be able to study the market and give you an in-depth analysis of your property’s true value. This analysis should produce a figure that is within 2% to 3% of the projected list price. 


2. “How long is it going to take for my home to sell?” Again, this agent will be able to estimate the time your transaction will take based on area statistics. 

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Agents must have a proven plan of action in place for selling your listing.   

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3. “What will you do to get my home sold?” Agents must have a proven plan of action in place for selling your listing. As for myself, I have a 19-point plan of action specifically designed to bring my clients success. If you have any other questions, would like more information, or are curious about my answers to these three questions, feel free to give me a call or send me an email. I look forward to hearing from you soon.

An Update on Interest Rates and Our Chicago Market

Today we want to give you a midsummer update about interest rates and our market.

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We have reached the end of July and you know what that means. It is time for a midsummer update.

As far as mortgages are concerned, we are in full swing for the summer buying season. Low inventory is affecting buyers and causing them to have a difficult time finding homes. In fact, a lot of pre-approved buyers haven't been able to find houses.

Currently, buyers are fighting interest rates. And, everyone seems to feel that interest rates are going to go up probably two more times this year. Since they have already gone up twice this year so far, that means that they are expecting it to increase four times total. We think this may happen in September and December.

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In the last few months, inventories have climbed, especially in the downtown area.  

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We are still dealing with low inventory. In fact, at one point the Chicago market was down by 8% compared to last year. In the last few months, however, inventories have climbed 2% to 3%, especially in the downtown area. This is due to some of the new builds that are starting to be delivered to the market. Overall, we need both sellers and buyers. If you have any mortgage questions or you're curious about buying or selling a home, please feel free to reach out to us. We look forward to your calls.

What Do Buyers and Sellers Pay at Closing?

Were you recently rejected from getting a mortgage and are unsure why? Today we have four possible reasons why.

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People ask us all the time, “What are closing costs?” 

The answer to this actually varies for buyers and sellers, so let’s examine both sides. 

For sellers, closing costs are made up of title, brokerage, and attorney fees. There are also area-specific costs to consider. Closing costs also include the expense of home inspections.

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For buyers, closing costs will include appraisal fees, administrative fees, loan company fees, third-party fees, and more. 

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When it comes to buyers, closing costs are comprised mostly of finance fees. These will include appraisal fees, administrative fees, loan company fees, and third-party fees including title work.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why Might You Be Rejected From Getting a Mortgage?

Were you recently rejected from getting a mortgage and are unsure why? Today we have four possible reasons why.

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Why would a buyer not be able to secure a mortgage? There are a few issues which may pop up, so today we will be discussing the top four reasons this can happen.

1. Work status changes. If an employee changes from W-2 status to a 1099 contractor status, this can cause issues. Many companies are doing this to reduce their bottom line so that they don’t have to pay benefits. This status change means the borrower is still getting the same amount of money, but now have to pay their own taxes, as they have technically become self-employed. 

2. Bounced checks. A lot of people don’t seem to think that this is an issue, but it is a sign of financial irresponsibility. 

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If you go behind on a small bill, it can really push your credit score down. 

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3. Opening a new credit account. If a buyer does this in the middle of the loan process, it could cause a problem in qualifying for the mortgage.

4. Current credit. Many people have store cards with low balances, and they think this makes payments on those cards unimportant. However, this is not true. Paying off these lines of credit is extremely important. If you go behind on a small bill, it can really push your credit score down. 

These are the top four reasons that you may be unable to get a mortgage. If you have any further questions about this, please feel free to reach out to us. We look forward to speaking with you soon.

Is Airbnb a Good Platform for Real Estate Investors?

What is happening with the interest rates? You can find out today because we have the mid-spring real estate update for the Chicago area.

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As a real estate professional, it’s important for me to always stay on top of the latest news from our industry, and one of the hot topics I keep hearing about lately is a company called Airbnb. 

Airbnb is an online platform that allows those who own property to rent it out to travelers. With all the ongoing discussion surrounding this platform, there are obviously positive and negative points being brought up. Let’s start by looking at a few of the positives. 

First of all, the platform allows you to supplement your income. 

I’ve personally got one client who has used it to pay off his mortgage, and another who also makes a large sum of money each month through the platform. Additionally, local businesses also receive an infusion of cash when people stay at short-term rental properties through Airbnb. Beyond serving as a source of income, Airbnb also allows investors to meet new people from all over the country—even the world. 

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And beyond serving as a source of income, Airbnb also allows investors to meet new people from all over the country—even the world. 

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Of course, there are arguments against Airbnb. One of the negative aspects people point out is the claim that it hurts a pricing housing market. People also claim that short-term rental platforms like Airbnb take business away from long-term rental inventory. 

So if you’re thinking of running an investment property through Airbnb, be sure to keep all of these pros and cons in mind. Also, make sure you consider the tax implications. 

Running an Airbnb could help you supplement your income, but it’s certainly not a decision to take lightly. You must be comfortable sharing your home with strangers, handling the check-in and check-out process, and taking care of other managerial duties. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Chicago’s Mid-Spring Real Estate Market Update

What is happening with the interest rates? You can find out today because we have the mid-spring real estate update for the Chicago area.

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Our mid-spring real estate market update is out, and today we’d like to tell you all about it.

So, where are we at from a mortgage standpoint? The rates are still the same. At the beginning of May, the Fed met and decided to relieve the federal funds rate in loans. We do expect it to change later in the year. They are predicting it to change twice—in August and September.

Where are the rates at generally right now? Rates are fluctuating depending on the program. But, they are still very good. They are expected to rise a little bit by the end of the year, however.

Now is the best time to get a mortgage. If you want to try to get the best possible rate, you want to do that at the beginning of the year instead of the end of next year.

From a seller’s standpoint, we know that inventory is low. There was a report that said that we are down by 9% in terms of the number of homes that are for sale at this point in 2018 compared to 2017. The good news is that in Chicago, even though we do have low inventory, prices have gone up year after year by about 7% to 8%.

50% of the inventory on the market is on the higher end, so we have the challenge with first-time home buyers of finding their right property.

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Even though we have low inventory in Chicago, prices have gone up year after year by about 7% to 8%.

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Pre-qualified people are having the issue of finding inventory even though they are looking and looking. When they do find it, they end up in a multiple bidding situation where a lot of times they don’t get it.

There was a report that said 25% of the deals that were done in 2017 were multiple offers and the property ended up selling for higher than the list price. Buyers, if you are looking to buy a property, and you see something that you like, you want to jump on it. Otherwise, somebody else will.

Sellers, get your homes on the market. It is a perfect time.

If you have any questions or would like to list your home, please call me. If you would need to get pre-qualified or pre-approved, you can contact David at 708-705-7911. We look forward to speaking with you soon.

How Much Inventory Do We Have?

How are we doing this spring in terms of inventory? Here’s what you need to know.

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Toward the end of April, we were still dealing with the lowest amount of inventory in our market that we’ve had in the last five to seven years. 

I checked the MLS this morning and we have just over 1,800 condo units in our local downtown Chicago market. The exciting part is that over 485 of those are going to sell every 30 days, which, of course, represents a 3.7 month supply of inventory.

This figure is important because it lets us know exactly where we are in the market and whether it will favor buyers or sellers. If there’s more inventory than demand, then we’re in a buyer’s market. If there’s more demand than there is inventory, then we’re in a seller’s market.

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We are definitely in a seller’s market.

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A typical supply of inventory in a balanced market is six months’ worth. Being that we currently have 3.7 months’ worth, we are definitely in a seller’s market. 

If you have been on the fence about selling your home—whether it’s upsizing or downsizing into a townhome, condo, or another property—please feel free to reach out to me. I’d love to discuss your plans with you.

Why Is Housing Inventory an Important Statistic?

As a statistic, housing inventory means the number of homes that are on the market at any given time, and it can determine whether we’re in a buyer’s or seller’s market. 

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When it comes to selling your home, there are some very important statistics that you should know about. One of  those statistics regards housing inventory. 

Housing inventory means the number of homes that are on the market at any given time. In our downtown Chicago market, we currently have 654 active listings. Over 30% of those listings have gone under contract in the last 30 days, which means we have a 3.7-month supply of inventory. 

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Our current housing inventory puts us in a seller’s market.

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What does a normal housing inventory look like? Typically, a six-month supply is considered normal, and that level is enough to supply homes for any buyer. That means our 3.7-month supply puts us in a seller’s market. Whenever inventory is up and demand is low, we’re in a buyer’s market. 

If you have any more questions about housing inventory or you’re thinking of taking advantage of our seller’s market by listing your own home, give me a call or shoot me an email anytime. I’d love to help you. 

Questions to Ask Your Lender Before Securing Your Mortgage

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Before you go ahead and sign on the dotted line for a mortgage, there are a few important questions that you should be asking your lender. 

These include questions like, “What is the interest rate on the loan?” and “Is it a fixed mortgage or an adjustable mortgage?” Everything should be spelled out clearly. Good-faith estimates and truth-in-lending forms are gone, and loan estimates and closing disclosure forms are here. They spell all of the information out about the loan. 

Prepayment penalties are not for all mortgages. It depends on the state that you’re in. According to David, he never sees prepayment penalties for the mortgages that he does. He only sees them with commercial lenders.

When you start with your mortgage application, you’ll lock your interest rate in for 30, 45, or 60 days. We can do long-term locks as well up to 180 days. In an environment like this with rapidly rising rates, it makes sense to lock it in now if you know that you’re going to be purchasing a home.

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  It makes sense to lock in a rate now before they go up again.

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If you have any questions about mortgage, interest rates, or buying or selling a home, don’t hesitate to reach out to us and give us a call or send us an email. We look forward to hearing from you soon.

Thank You for All of Your 1st Quarter Referrals

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Today we want to thank you for your first quarter referrals and thinking of us for all of your mortgage and real estate needs so far in 2018. This was probably my best first quarter ever, and I couldn’t have done it without you.We have a feeling the rest of 2018 will be just as good as it was last year, so we’re ready to help you with all of your mortgage or real estate needs moving forward. To hear our full message of gratitude, watch our latest video.  

“Thank you so much for thinking of us for your mortgage and real estate needs. 

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The Benefits of Buying in the South Loop

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Buying in the South Loop carries many benefits.

For one, not only is it in close proximity to the hustle and bustle of the city, there are also a lot of new construction properties being built. 

This area has really been built up as of late, becoming a very vibrant community. There’s a ton of growth going on in this area, meaning there are plenty of places to live and things to do. 

Also, the location makes for convenient commutes. Even though you are still technically in the downtown area, it’s a great place to raise a family compared to other areas. The South Loop is close to a number of parks, museums, and other great family locations. 

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 One of the most significant benefits is the probability of appreciation.

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Of course, one of the most significant benefits is the probability of appreciation. Experts are estimating 2% to 3% moderate appreciation, with new areas likely seeing even more appreciation than that. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What Buyers and Sellers Should Know About Our 2018 Market

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Welcome to our first market update of 2018.

Back in 2017, we saw over $5.3 million in sales. As for 2018, current projections predict we will see $5.6 million. Additionally, we’re expecting to see an appreciation rate between 2% and 3%.

According to David, last year was very busy. Supply was low and buyers had a tough time finding homes. Now, the economy has gone up tremendously, and the Fed already raised rates a couple of times last year.

This year, we can expect rates to rise again. Rates are expected to rise around March and then probably again in June or July.

Still, rates aren’t bad at all right now. They are currently hovering in the 4% range. 

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Whether you’re looking to buy or sell, right now is a great time to do so.

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Keeping these factors in mind, it is a great time to buy or sell right now. Rates will always fall and rise, so it’s a great time to start looking for a home. Also, sellers currently have the opportunity to take advantage of our low inventory market.

If a home purchase is in your future and you are looking to get pre-approved, call David at (708) 705-7911 or email him at dbowen@loandepot.com.

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.