Tales From the Conscious Real Estate Agent

I am preparing a property for sale. To do this I've been over to preview the condo and become more intimately familiar with the building it is in. It's a very large loft building. The condo currently has a tenant leasing the unit. Her lease is up at the end of March, then she plans to live there on a month-to-month basis with a 60 notice for move out. Luckily, this is a conscientious tenant who keeps the place in immaculate condition. I've had cases where this isn't so and it's a real nightmare! The unit is a small one bedroom with edgy loft features. There are brick walls and timber ceilings and it's on the top floor of a low-rise courtyard building. It's very cool with its hardwood floors, stainless steel appliances and huge windows. Its a first-time buyer's perfect first home. I just hope that first time buyers are active and not too worried about losing their job or their 401k. We've got to get this economy rolling again and first time buyers can take advantage of the latest incentives that President Obama just signed into law.
I will be posting the listing tomorrow morning. Meanwhile, tonight I am thinking about all my sellers and hoping that they will have some showings scheduled really soon. Open houses are great, but some buildings do not allow them. What other ways can I market that will excite a buyer in this market? Will I sleep tight tonight?

Confessions of Shopaholic-ism

I hate to admit that I saw the movie, but I did. Even worse, I dragged my husband along.. We stayed through the entire movie and rather enjoyed ourselves. We chose the movie because we’ve seen every single movie out right now that was worth seeing, including He’s Just Not That In to You. Both are silly movies that actually left us smiling. But I digress. What I wanted to share with readers are the thoughts that ran through my head after the movie. It’s the tale of a young woman who gets enthusiastic about over consumption and incurs massive debt. She finds her way to happily ever after, as movies sometimes do. But debt burdened American’s won’t be saved within a 2 hour story line.

Of course the movie was conceived and made well before our national economic crisis. But you have to wonder how the movie company made the decision to release this film right now. I think it’s exactly because of the times. Hello, may I introduce you to a picture of you, America? Did you incur massive credit card debt? How about your home, did you purchase one that you truly could not afford? Or may be you sucked the equity out of your home in order to purchase, well, everything! Are you running from debt collectors? Have you lost your job? You might as well be the young woman with the Gucci bag full of over-extended credit cards. We are a country of Shopaholics! We suffer from shopaholic-ism. We’ve been on the see it, charge it, and try to pay for it, program.

Whoops! Stop the train! Shopaholic-ism has been thrown off the track. We followed the heard to the over-consumption hotel and now we are having shock treatments at the asylum. The housing market has crashed and whether its because of the greed of lenders, “liar loans”, stupidity of buyers, what ever the reason…it’s over. So, go to your fearful place like the rest of the heard and stop. We’ve been forced to stop, we’ve been told to stop and now stopping has brought the rest of the economic crisis to a head.

No spending results in retail deaths. Obviously, we have to find some kind of balance, but how? Our homes may be gone or worth less and our retirement funds aren’t worth talking about. Now what? Now you shopaholics have no shopping power left. You’ll have to hope the President will give you a happily ever after ending scenario that will save you.

Meanwhile, I desperately hope this country can get over itself and become a bipartisan, love America, save America country. Let’s walk on the best path possible. I’m listing two small one bedroom condos in the West Loop in the very near future. Both will be listed at lower than expected, but current market value pricing. That means that those of you who did not loose your shirt in the stock market or over spend should read the signals. If you have not been a shopaholic, you actually have a job, positive credit rating and money in the bank, then you can take advantage of lower housing prices, lower interest rates and buy a condo or a house at a great price. Homebuyers step up to the plate. Americans are counting on you.

Breaking Down the Recovery Act

There has been so much news regarding the programs President Obama signed this past week, I thought it might be helpful to break down a couple of key points that effect the real estate/housing issues. This past Tuesday President Obama signed The American Recovery and Reinvestment Act of 2009. I know how complicated it all sounds. I don't pretend to understand it all, and it is very early to say how much and how quickly relief will come. I have chosen a couple of big items that I thought might be helpful information to break down.

The Home Buyer Tax Credit, which has gone through many alterations, here is the final facts as they are now written:

– The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and Realtors. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. The National Association of Realtors worked hard with partners to get this provision through the Senate.

Energy Efficient Housing Tax Credits & Grants - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.

As President Obama continues to push for aid and reform we can all do our part by being educated, voicing our opinions and showing support where ever we can.