Gene's Bit of Blogging
Real Estate Professionals
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Gene Mundt, Mortgage Lender: Posted on Wednesday, May 16, 2012 8:03 AM
Multiple Offers and Appraisals. Learning to Co-Exist Successfully We are presently in the time of year when Appraisers, Realtors, and Mortgage Originators ... as well as Home Buyers and Sellers are often "anxious". Both good anxious and bad anxious. This Spring, many of us find ourselves anxious, but hopeful, that our housing market is reviving itself after a long winter. This is especially true in the Midwest region where I live. Weather makes home sales somewhat more seasonal here. This year's anxieties are accompanied by the good-to-have-problem of rising house prices. In many areas, we are presently seeing multiple offers placed on strategically-priced properties. RISING home prices shouldn't be a problem, right??? Welllllll ... they can be ...  As an example, let's consider what the prior 6 months of property sales were in the Chicagoland region. Again, those months are typically the slower sales season in this region, but most certainly they have been even slower because of the health of the housing market this last year. This particular 6-month period showcased a housing market trying desperately to gain traction and stability. Now as someone that's a former Appraiser, it's my opinion that there are going to be some real challenges ahead for current-market Appraisers ... and those challenges will trickle-down to Agents, Brokers, and Mortgage Originators. And I most likely need to include Mortgage Underwriters in this mix too. Where are these challenges coming from? Many potential Home Buyers are now having to actually compete for homes in this spring's market. They've been caught a little off-guard at the return of a bewildering phenomenon ... multiple-offer bidding wars. If they are a Home Buyer that has been disappointed one or more times because of bidding wars, what happens the next time they begin a new home search?
My local referral partners are telling me that the fear of getting outbid again is motivating these potential Home Buyers to aggressively pursue and price their next offer to purchase. Contracts are being signed AT or ABOVE the asking price of a home.
Let's see ... new Home Buyers are securing a historically low interest rate. The Sellers have sold their home (more quickly and for perhaps higher than they had envisioned). Agents have helped facilitate and secure a successful contract. Mortgage Lenders have been called into action. The wheels are turning ... all cause for celebration. Right?
Again, yes and no. Things couldn't be that simple!! What's the issue?? Remember I mentioned the previous 6 month time-frame above? Well, during that period, sales were slower or stagnant. Most times, housing prices were lower. And now?? A home has been sold. And an appraisal must be ordered and completed to facilitate the mortgage financing. But finding Comparables to support the sales price of the home might prove tricky. The question becomes ...
 At what point do Appraisers recognize market changes that seem to be taking place in many housing markets? When do they choose to support and make adjustments reflecting these new trends for home sales prices? JMO, but not only do Appraisers need to recognize this trend, but so do Underwriters who eventually REVIEW, approve the Appraiser's work, and ultimately "bless" the final Opinion of Value. But therein lies the possible problem ...
Consider this current scenario: As an Agent, you've priced a new listing via your MLS, supported data, and info. You've worked hard. Potential Home Buyers are now actively pursuing your listing. You've generated offers. One Buyer, a veteran of bidding wars, has made a solid, aggressive offer. They want this home! But the Sales Price on the home is at the high end of the previous 6-months' supported data, or higher. Question ...
Are the Closed sales from that previous 6-month sales period, (November, December, January, February, etc.), going to support that newly-arrived-at-much-anticipated Sales Price you just received? How are Appraisers going to approach it? If not, what can be done to facilitate and safe-guard the sale? First ... let me qualify what I think is an important bit of information. EVERY HOUSING MARKET IS DIFFERENT. Those differences must be taken into consideration.
That said, Listing Agents experiencing a healing, "correcting" housing market must be well-prepared to go to battle. They must be willing and capable to provide Appraisers current listings, pending sales, and March-April-May Closed Sales information that is relevant and comparable to their Subject Property. And very importantly ... Appraisers must be willing to accept and utilize valid, "fresh" sales and info from that period, as well. Add mortgage lending Underwriters into that mix. Securing successfully closed transactions for our clients must be ALL of our goals. If we don't get on the same page during this transitional period, if we don't work hand-in-hand, we will disappoint often.
An unwillingness to broaden the scope of properties considered via Appraising and Underwriting ... and the data accepted and utilized within transactions ... will sink transactions completely. That will hurt our clients and further delay the healing of our housing market and real estate industry.
This is going to call for a bit-of-a-shift in mentality. My guess, but there is probably going to be a bumpy adjustment period ahead regarding appraisals. Challenges to be sure.
This particular situation once again provides strong proof that ... the choice of real estate and mortgage professionals working on any transaction is vitally important. Experience, knowledge, and past successes should and must count greatly for clients when making those choices. Being anxious to buy. Being anxious to sell. Being anxious to celebrate ... to move ... to decorate ... to landscape. Those are all positive. But being anxious over whether you can seal a deal with a property appraisal certainly isn't ...
* Contact me today to work with a mortgage lender that has 35+ years of education and experience to assist you throughout your entire home buying and mortgage financing transaction. I can be found at any of the following: Direct: 815.277.4036 Cell/Text: 708.921.6331 Convenience @ Skype: 630.219.1316
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Buying a Home, Mortgages, Working with a Mortgage Professional, Appraisals, Chicagoland, Agents and Brokers, Selling Your Home, Working with a Real Estate Professional, Real Estate Professionals, home buying, Appraisal changes, Realtors, Pricing a home for Sale
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Guest Blogger - LaNita Cates, Re/Max Realty of Joliet, IL: Posted on Thursday, May 10, 2012 10:52 AM
Buyers Decide Within 8 Seconds Whether They Are
Interested In a Home
I am a huge fan of Real Estate Agent and Mogul Barbara Corcoran. Barbara is a Real Estate Contributor on NBC's Today show and the wonderful addition to ABC's Shark Tank.
 Per Barbara:
"BUYERS DECIDE WITHIN 8 SECONDS WHETHER THEY ARE INTERESTED IN YOUR HOME."
I'm not surprised by this at all. It's the first impression when
walking in and hearing, "Wow, this is cute" - or - "Ugh, what is that smell?" Pretty much sums of the next few minutes of the tour of that home.
I always tell my buyers that they will know when they walk in if this
is their home or not. If they aren't feeling it within the first 10
seconds, let's move on. They never believe me... AT FIRST. But usually
by the 4th house, they agree that they know pretty much immediately if
they are interested or not when walking in the door.
So buyers pretty much know. Sellers - remember that! That first
impression (or at least the first 8 seconds) can decide whether the
buyer is interested in your home!
* LaNita
Cates of REMAX Realty of Joliet has been serving the Joliet,
Plainfield, Naperville, Crest Hill, Bolingbrook, Shorewood and
surrounding areas, helping buyers and sellers with all their real estate
needs.
Call or Contact: LaNita Cates REMAX Realty of Joliet today ...
Office: 221 Springfield Ave., Joliet, IL 60435 Office Phone: 815-609-0887
Office Fax: 815-364-1267 Cell: 630-341-1545 |
Buying a Home, Real Estate, Real Estate Advice, Will County, Agents and Brokers, Home Improvements and Curb Appeal, Maintenance and Upkeep of Your Home, Selling Your Home, Staging your Home, Remodeling, Real Estate Professionals, Home Maintenance & Repair, Home Buyers, home buying, Deciding Which Home is Best to Buy, Home Staging, Realtors, Preparing your home for sale
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Gene Mundt, Mortgage Lender: Posted on Friday, May 04, 2012 10:50 AM
When Is a Deal NOT a Deal??
 Relax! This is NOT a trick question! The answer to this question? It's actually pretty simple to figure out.
A Deal is NOT a Deal when you will come to regret having made the purchase in the first place, at some later date.
What brought this topic to mind was a thoughtful, well-written blog post by real estate agent and ActiveRain member, Barb Van Stensel. In her post, Barb talks about the realities of viewing, obtaining, then successfully transacting, a condominium property.
Barb Van Stensel is absolutely 100% correct with her summation of condominium purchases too. Buyers should ask questions, demand thorough inspections of the property itself, the property management company involved, AND the condominium association under whose direction the property finds itself, all PRIOR to signing a contract for purchase and seeking financing.
I cannot stress the following advice strongly enough...
When considering the purchase of a condominium property, it absolutely vital that you do your homework regarding the professionals you seek and then work with during your purchase and mortgage financing.
 Choose a real estate professional and mortgage lender that meets and surpasses specific criteria.
And what should that criteria be? Choose only real estate and mortgage professionals that are educated and experienced regarding condominium transactions and have successfully completed and closed them RECENTLY. And I repeat ... RECENTLY!
The condominium market is a quickly-changing housing market. The need for current experience and thorough knowledge and understanding of these transactions ... and their regulations ... cannot be overstated. Simply said ... it is NOT the time to work with a rookie or someone that typically does not work within this specialized market.
The Chicago and Chicagoland area in which Barb Van Stensel and I live, provides a perfect example of the urgent need for meeting the criteria I outline above. Chicago and Chicagoland currently has a large array/choice of condominium properties from which to choose during your condo property search. Choose unwisely regarding your selection of real estate and mortgage professional ... and you run the real risk of personally finding out just when a Deal Is NOT a Deal. Most likely, you'll be living proof of it.
I have a complete and thorough education and understanding of just what constitutes a "condominium" VS a "townhome". I also understand the workings of condominium associations and management companies because I dealt with so many of them while appraising ... and mortgage lending.
I know who to approach and what to ask them ... and just why. What legal paperwork will be demanded. What lending underwriters will seek from seller, management, associations, buyers, etc. I know what information is absolutely mandatory to my transaction ... and how to interpret that information. My clients and referral partners have come to know this regarding my services and depend on the benefits and protections that knowledge and experience affords them.
When is a Deal NOT a Deal?? That's simple, especially when speaking of condominium transactions.
A Deal is NOT a Deal when ... you come to wish you'd never seen or bought your condominium in the first place ... or you wish you had chosen another professional to work with during your purchase or mortgage transaction.
Don't let that be you! Protect yourself when buying a condominium by seeking-out and then working with an experienced, knowledgeable, successful real estate agent and mortgage lending professional. You'll be glad you did ...
* Thinking about buying a Chicago or Chicagoland condominium now or in the future? Contact me! I'll put my years of experience, education, and expertise to work on your behalf.  I can be contacted at any of the following:Direct: 815.277.4036
Cell/Text: 708.921.6331 Conveniently via Skype: 630.219.1316
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Buying a Home, Mortgage Lender, Mortgages, Working with a Mortgage Professional, Refereral Partners, Localism Posts, Condos and Townhomes, First-Time HomeBuyers, Chicagoland Markets & Special Events, Choosing a Mortgage Lender, Condominium Associations, Seeking Advice, Real Estate Professionals, home buying, FHA Financing for Condominiums, Pre-Qualification/Pre-Approval, Choosing Your Real Estate Professionals
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Linda Kemp, Keller Williams Infinity - Naperville, IL: Posted on Wednesday, March 07, 2012 6:51 PM
Kitchens--The Heart of the Home! Part Two
Welcome to part two in my kitchen series. The kitchen is one of
my favorite rooms in my home. I cook great meals there, we laugh
through our family dinners, and we indulge the many desserts that come
out of my oven. One thing is certain--it has to feel good.
If you have
been struggling with different ideas on how to remodel your space with a
shoestring budget take a read through the following article. Do your
homework on all building materials and your options and you will be
quite pleased with the results. And then mangia!
Linda
Budget Kitchen Remodeling: 5 Money-Saving Steps
Can't afford an entire kitchen remodel in one fell swoop? You can
complete the work in 5 budget-saving stages (and still cook dinner
during the down time).
Stage one: Start with a complete design plan
Your plan should be comprehensive and detailed — everything from the
location of the refrigerator to which direction the cabinet doors will
open to whether you need a spice drawer. To save time (and money) during tear-out and construction, plan on
using your existing walls and kitchen configuration. That’ll keep
plumbing and electrical systems mostly intact, and you won’t have the
added expense — and mess — of tearing out walls. Joseph Feinberg, vice president of Allied Kitchen and Bath in Fort
Lauderdale, Fla., recommends hiring a professional designer, such as an
architect or a certified kitchen designer, who can make sure the details
of your plans are complete. You’ll pay about 10% of the total project
for a pro designer, but you’ll save a whole bunch of headaches that
would likely cost as much — or more — to fix. Plus, a pro is likely to
offer smart solutions you hadn’t thought of. For a nominal fee, you also can get design help from a major home
improvement store. However, you’ll be expected to purchase some of your
cabinets and appliances from that store.
- Cost: professional designer: $5,800 (10% of total)
- Key strategies: Once your plans are set, you can hold onto them until you’re ready to remodel.
Stage two: Order the cabinets, appliances,
and lighting fixtures
Cabinets and appliances are the biggest investments in your kitchen
remodeling project. If you're remodeling in stages, you can order them
any time after the plans are complete and store them in a garage (away
from moisture) or in a spare room until you're ready to pull the trigger
on the installation. Remember that it may take 4-6 weeks from the day you order them for your cabinets to be delivered.
If you can't afford all new appliances, keep your old ones for now --
but plan to buy either the same sizes, or choose larger sizes and
design your cabinets around those larger measurements. You can replace
appliances as budget permits later on. The same goes for your lighting fixtures: If you can live with your old ones for now, you’ll save money by reusing them. You’ll have to decide about flooring, too — one of the trickier
decisions to make because it also affects how and when you install
cabinets. You’ll need to know if your old flooring runs underneath your
cabinets, or if the flooring butts up against the cabinet sides and toe
kicks. If the flooring runs underneath, you’ll have some leeway for new
cabinet configurations — just be sure the old flooring will cover any
newly exposed floor areas. Here are points to remember: Keep old flooring for cost savings. This works if your new cabinets
match your old layout, so that the new cabinets fit exactly into the old
flooring configuration. If the existing flooring runs underneath your
cabinets and covers all flooring area, then any new cabinet
configuration will be fine. Keep your old flooring for now and cover it or replace it later.
Again, this works if your cabinet configuration is identical to the old
layout. However, if you plan to cover your old flooring or tear it out and
replace it at some point in the future, remember that your new flooring
might raise the height of your floor, effectively lowering your cabinet
height. For thin new floor coverings, such as vinyl and linoleum, the change
is imperceptible. For thicker floorings, such as wood and tile, you
might want to take into account the change in floor height by installing
your new cabinets on shims.
- Cost: cabinets: $16,000 (27% of total); appliances and lighting
fixtures: $8,500 (15% of total); vinyl flooring: $1,000 (2% of total)
- Key strategy: Keep old appliances, lighting fixtures, and flooring and use them until you can afford new ones.
Stage three: Gut the kitchen and do the electrical
and plumbing work
Here's where the remodel gets messy. Old cabinetry and appliances are
removed, and walls may have to be opened up for new electrical
circuits. Keep in close contact with your contractor during this stage
so you can answer questions and clear up any problems quickly. A major
kitchen remodel can take 6 to 10 weeks, depending on how extensive the
project is. During this stage, haul your refrigerator, microwave, and toaster
oven to another room — near the laundry or the garage, for example — so
you've got the means to cook meals. Feinberg suggests tackling this
stage in the summer, when you can easily grill and eat outside. That’ll
reduce the temptation to eat at restaurants, and will help keep your
day-to-day costs under control.
- Cost: $14,500 for tear-out and installation of new plumbing and electrical (25% of total)
- Key strategies: Encourage your contractor to expedite the tear-out
and installation of new systems. Plan a makeshift kitchen while the work
is progressing. Schedule this work for summer when you can grill and
eat outside.
Stage four: Install cabinets, countertop, appliances, flooring, and fixtures
If
you’ve done your homework and bought key components in advance, you
should roll through this phase. You've now got a (mostly) finished
kitchen.
A high-end countertop and backsplash can be a sizable sum of money.
If you can't quite swing it, put down a temporary top, such as painted
marine plywood or inexpensive laminate. Later, you can upgrade to
granite, tile, solid surface, or marble.
- Cost: $12,000 (21% of total)
- Key strategy: Install an inexpensive countertop; upgrade when you’re able.
Stage five—Final phases: Upgrade if necessary
Replace the inexpensive countertop, pull up the laminate flooring,
and put in tile or hardwood, or buy that new refrigerator you wanted but
couldn't afford during the remodel. (Just make sure it fits in the
space!).
By: Gretchen Roberts Published: January 19, 2012 Reprinted from House Logic with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2012. All rights reserved.
Are you looking to get your home on the market in time for the Spring
market? This is it! Don't know where to begin? Let me help you
navigate through the process of getting your home ready for sale. Not
interested in selling but just need some design help? No problem!
Call Linda Kemp at 630.688.5121 for help and advice. It's always my pleasure to assist you!
Buyers you can search for properties from the comfort of your living room right here! You will find the most up-to date listings direct from our multiple listing service. Have fun and happy house hunting!
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Gene Mundt, Sr. Vice President - Chicago Bancorp: Posted on Tuesday, December 27, 2011 3:05 PM
MIA on Realtor Magazine.
Where is Input From Mortgage Lenders and Mortgage Lending Educational Opportunities to be Found??
In this day and age, as a Mortgage Lender you have to be pretty adept at multi-tasking during much of your day. You can't do just one thing at a time and expect to get what needs to be accomplished completed within the typical work day.
So while I'm waiting on a call to go through, oh hold on the phone, etc., it's not unusual as a Mortgage Lender, to find me tweeting, reading emails, commenting on social media formats, or something. Utilizing these snippets of time is important to getting things done, or at least moving them along.
I was doing just that this morning. While waiting for someone to come back on the phone with some info I needed, I was catching-up on some Twitter reading. A tweet containing an article from Realtor Magazine had caught my eye and I had pursued reading the entire article on the magazine's website.
After finishing the first article, I noted a few others that seemed pretty interesting and clicked on them too. (Can never know too much about real estate transactions!) Typical of most websites, there was a choice of differing headlines and categories of topics from which to choose to read. But as I was wandering through the Realtor Magazine site, something hit me.
There were articles and specific categories available for the obvious topics. That was great. And those topics surrounding the information and needs for real estate agents and brokers were plentiful, pretty much as I expected. Afterall, it's called Realtor Magazine, right??
And there were sections and articles regarding Staging and staging tips, marketing info and tips, law, legal ethics, technology, design, architecture, inspections, and a few more. Again, great! All opportunities to learn ... which I really appreciate.
But there was no specific section showcasing Mortgage Lending! Huh?
 Where were the ongoing opportunities to educate and inform readers about mortgage financing, mortgage processing, preparing for financing within this Realtor Magazine site? A format to ask questions? To have dialogue? It was the same for credit, credit issues. There was a huge void left regarding the wide topic of finances and credit.
It was MIA! (Missing In Action)
There were random articles in the news portion of the website/magazine regarding financial issues and financing in general. I will give them that. But there was no specific section dedicated to Mortgage financing and Lending? I found that odd (and sad), given the importance of Mortgage Lending and Credit to the success of a home buyer and real estate transaction. I found it odd, given the other peripheral topics showcased and contained on the website's Site Map!
And I found that odd given the number of questions I receive, and the thirst for mortgage lending and credit information that most realtors and home buyers/owners display to me personally ... not only face-to-face, but here online and in social media formats.
This agent-centric Realtor Magazine and website seems like the perfect forum for educating its' real estate-focused readers on the issues and demands surrounding lending and credit. But as a Mortgage Lender, I found myself MIA on this format.
In my eyes, that's a huge opportunity overlooked and sorely missed ...
* Should you have questions regarding Mortgage Lending, Credit, Credit Repair, or finances in general ... please do not hesitate to contact me. With over 35 years of experience within the mortgage lending industry, and as an IL Certified Financial Planner ... I have the expertise and insight you need ... and the answers you seek. Contact me today through any of the following means: Direct: 815.277.4036 Cell/Text: 708.921.6331
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Credit, Credit Repair, Buying a Home, Financing, Mortgage Lender, Mortgages, Real Estate, Agents and Brokers, Communication, Asking credit and mortgage questions, Seeking Advice, Education Opportunities, Real Estate Professionals, home buying, Home Ownership, realtor magazines and social media
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