The Illinois Association of Realtors has published a new brochure discussing the Illinois real estate market. Here are 10 facts you should know:

1. There is no such thing as a national real estate market.

2. Illinois home values are stable.

3. A house is a place to make a home, not just a buck.

4. $11.9 billion - economic impact of Illinois residential real estate needs.

5. There are hundreds of reputable mortgage lenders ready to do business.

6. The market favors Illinois first-time buyers.

7. Owning a home builds wealth in a way that renting can’t.

8. It’s prime time for second homes.

9. Getting help from a REALTOR is a smart financial decision.

10. NOW IS A GOOD TIME TO BUY.

The May numbers are in and it appears that May was a good month for real estate sales in the Capital Area.  A total of 401 homes were sold compared to 404 in May of 2007.  The median price continues to climb and in May was $115,000, up from $112,000 in May of 2007.

The only real negative aspect of May’s results was the continuing increase in inventory.  There were 1909 homes for sale at the end of May, a 3.9% increase over May of 2007.

What does it all mean?  Well, for buyers, it is still a great time to buy.  In fact, with mortgage rates at near all-time lows, there may never be a better time than right now to consider home ownership or to think about moving up to a larger home.

For sellers, what we’re seeing is that the homes that are priced “right” and are in great condition are selling quickly, while homes that are over-priced or are in need of painting, carpeting, repairs, etc. are just sitting there eating up the days on the market, which by the way is up 15% over last May.

When the inventory was lower, buyers were willing to negotiate and consider fixing up a house themselves.  In today’s market, if the house needs work or is overpriced, the buyer just moves on to the next house.

If you need help in buying or selling a home, just give us a call.   

Time and again I am asked that question. Should I remodel, fence my yard, put in a new bathroom, or finish my basement? It’s a great question, but the answer isn’t always easy. There are several questions you need to ask yourself before you decide to remodel.

First of all, are you doing the project to increase the value of the home so you can sell it for more money? If this is your reasoning, I would suggest that you take a look at the Cost vs. Value report that comes out every year from the National Association of Relators. This report gives you some great information on what the average cost of various projects run in different areas of the country and tells how much of the total project cost you can recoup. Just because you see it on HGTV and they say you can do it for “X” dollars, it may not be true where you live. And, just because you install $4,000 of hardwood, that doesn’t mean your home is now worth $4,000 more. Each project costs are different depending on where you live and each return is different as well. Email me if you have a specific question on cost vs. value and I will be happy to share the info with you.

Second, will the project make your home more comfortable and enable you to enjoy it more? A lot of projects fit into this category. If this is the case, then you need to weigh this against how much value you are actually adding to the home.

Third, is the project going to drive the cost of your home beyond what the neighborhood will bear? IF it is, you probably shouldn’t do it. Remember in real estate, the key words in determining value are Location, Location, Location.

And, last, can you afford to do it? Home Equity loans are great, but when you sell the home, they have to be paid off the same as the mortgage. Will the money be there or will you be bringing money to the closing table?

All of these are good questions to ask, and should help you to make up your mind. If you need help, consult your Realtor. We help people make these decisions every day.

I’ve jsut returned from a week in Washington, DC where I had the opportunity to visit our Congressional delegation on Capitol Hill. I was there to talk with them about the many issues about which we Realtors are concerned. What impressed me as I met with our Senators and Congressmen was that these issues we care about as Realtors are things that really affect you, the consumer as much or more than it affects us.

Realtors are concerned about private property rights. We are out in front lobbying on issues that affect every person who owns a home or ever dreams of owning one. We are raising the banner for small businesses and for homeowners at the Federal, State and local levels. Here’s an example of the issues we are fighting for today:

+ We want to modernize the FHA and permanently increase the loan limits for government-backed loans.

+ We want to strengthen the housing mission of Fannie Mae and Feddie Mac and permanently increase their loan limits.

+ We want Congress to provide a tax credit to home buyers to help support a fragile market.

+ We want to address the availability and affordability of property insurance in areas prone to flooding.

+ We want to see small business health reforms enacted so all persons have affordable health insurance benefits.

These and other issues like the Realtors efforts to rebuild the Gulf Coast after Katrina make me proud to be Realtor. Realtors do more than sell homes. Take time this week to thank your Realtor for standing up for your property rights and for being involved in your community.

What a great sports weekend we’ve just experienced.  The Kentucky Derby with it’s grandeur and excitement, the Cardinal-Cub series with it’s usual fervor and then Springfield’s own Tim WIlkerson winning the funny car division at Gateway.  We love the thrill of competition and most of all, we love to win.  Everybody wants to win.   And, it’s no different in real estate.  Sellers and buyers both want to win. 

I’m often asked, “Is this a buyers’ market or a sellers’ market?”  Well, what is it that defines each one?  A buyer’s market, we’re told,  is one in which prices are falling and there are more parties interested in selling than in buying.  A sellers’ market, on the other hand, is one where there is relatively great demand and high prices of homes for sale.

As we look at our market today here in central Illinois, it doesn’t seem to match either one of these definitions.  Typically, when inventory increases, and demand shrinks, we see a decrease in the price of homes sold.  That’s not true today.  We currently have a high inventory of homes on the market for sale, yet we are consistently seeing the median home price increase.

I think it’s a buyers market because we have very favorable conditions for home buyers. Interest rates are at near all-time lows.  There are lots of homes to choose from, and, if your credit is good, the lending institutions are ready to lend you money to buy.   It’s a win-win time for buyers.

I think it’s a little tougher for sellers.  Homes are staying on the market longer today than they were a year ago.  Yet, we know that the median home price is continuing to rise. So, if you want to sell your home, and get top dollar for it, there are several things you need to do.  First, price it right.  Hire a real estate professional to help you price the home.  Over-priced homes do not sell in this market.  Second, make sure your home is in good condition.  Homes that need work don’t sell as quickly and don’t bring top dollar.   Third, be willing to be creative.  Offer  a home warranty, be willing to buy-down points, or pay closing costs.  OR think about this: All of the 100% financing programs have gone by the wayside.  Many first-time buyers don’t have 3%  for a down payment.  There are several programs currently available where the seller pays the buyer’s 3% down payment.  Not a bad choice for sellers if the offer is good enough. 

If you follow this advice you can find yourself in a win-win situation.  Even in tight markets, both buyers and sellers can be winners. 

Have you ever wondered, ”Just who is buying all these homes I see For Sale?”  Well, according to the Illinois results from the 2007 National Association of Realtors (NAR) Profile of Home Buyers and Sellers, an annual survey, conducted by NAR, this is what the Illinois homebuyer looks like:

1. Median age of homebuyers is 40 years old. Among first-time buyers, the median age was 31.
2. 58 percent of homebuyers were married couples; 21 single females, 10 percent single males and 8 percent unmarried couples.
3. First-time buyers account for 37 percent of homes purchased in 2007.
4. 29 percent of homebuyers reported using a social networking Web site such as MySpace, Facebook, LinkedIn and Friendster. Among homebuyers aged 18 to 24, 72 percent reported using social networking sites.
5. 83 percent of homebuyers used the Internet to search for homes.
6. The typical homebuyer for a home for a median 8 weeks and saw a median 12 homes.

I wonder, if you’ve bought a home recently, how do you to compare to these results?  Add you comments below.  And, if you match these results and haven’t purchased a home, why not?  Give us a call. We’d be happy to help. 

It’s that time of year again when folks in Central Illinois receive their Property Tax Assessment letters from County governments.  There are about 6900 local government entities in Illinois that use property taxes to finance their budgets.  Homeowners should educate themselves on how property taxes are determined. 

The property tax cycle is a two-year period. During the first year the home’s value is estimated and reviewed and then in the second year the taxes are billed for the previous year and are due in two installments.  So, in 2008, we will be paying property taxes for assessments made in 2007.

Your home’s fair market value is determined and then it is assessed at 33 1/3%  of that value in all counties of Illinois, except Cook. Assessors try to keep values accurate, but it is your responsibility to compare your assessment with other homes which have sold in your area and, if you think your assessment is out of line, to challenge it. 

This is where your local REALTOR can help you.  Your REALTOR can provide you with a current analysis of what your home is worth based on what other similar homes have sold for in your neighborhood.

Another thing that as a homeowner you should  be sure of is that you are getting all the exemptions to which you are entitled.  All of the exemptions are listed with the Illinois Department of Revenue, but here are a few of the more common ones:

• General Homestead Exemption. If you occupy your property before January 1 of the tax year you are eligible for up to a $5500 reduction in assessed value for 2008.  This amount rises to $6000 in tax year 2009 and thereafter.
• Senior Homestead Exemption.  This is available for those who are over 65 years of age and occupy the property as principal residence.
• Senior Assessment Freeze. Seniors who are over 65 and whose total household income is less than $55,000 qualify for this freeze which freezes the assessment for as long as you qualify for the exemption.
• Disable Person’s Exemption. For those who are disabled or become disabled during the assessment year.
• Disabled Veteran’s Exemption. For housing owned and used by a diabled veteran or his or her unmarried surviving spouse.  This is determined by the Department of Veterans Affairs.  Participants may not claim both the Disabled Person’s Exemption and the Disabled Veteran’s Exemption.
• Returning Veterans’ Exemption. Applies to Illinois residents who served in the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces upon their return home. Participants can qualify in subsequent year if he or she returns to active duty.

As a homeowner it is important for you to familiarize yourself with property taxes. Don’t be afraid to challenge your taxing authority if you feel your assessment is out of line.  And remember, your REALTOR can help you if you have any questions.