A reminder to all of you working with folks who hope to use those tax credits (1st time or move up buyers) we are now inside of (70) days for contracts to be signed, sealed and delivered for closings by June 30, 2010.
There are some motoviated sellers, plenty of inventory and a ticking clock for finding one of the many great values we are seeing everyday in every area of the market.
Add in the first of many indicators the Federal Reserve is focused on inflationary pressures more than a continuing environment of low rates (this week's bump in the discount rate) and you can conclude today's overall conditions (and opportunities) will soon be behind us.
Buying at the moment may not be for everyone, but the market has seldom offered such discounts, rates and potential long term rewards in real estate than we are seeing right now.


 

The recent changes in FHA financing guidelines will impact sales and the marketability of property in the Chicago area for at least the balance of 2010.
 
As a primer, FHA is the end lender and insurer of roughly 50% of all residential loans written today, both purchase and re-finance. The loan limit for FHA is $417,000 for single family homes and condominiums. With higher loan limits for 2-4 unit buildings ($524,000 - $729,000) they are an even more significant lender for these properties (owner occupied only qualifies).
Just (4) years ago, they represented 5% of these loans. If you are marketing a property that does not qualify for FHA, literally half of the people in the market for that property are eliminated as potential buyers.
 
The FHA 203K program is a critical loan option for buyers of homes in need of repair and has become a favorite of first time home buyers of distressed property in need of cosmetic and minor repairs that will immediately enhance value.

On the lighter side, today is the official National Bubble Wrap Appreciation Day.
Originally created as a new kind of wallpaper (go figure that one out), 2010 is the 5oth anniversary of bubble wrap.
The last Monday of January is now U.S. Bubble Wrap Appreciation Day every year.
Over 200 pages on facebook are devoted to bubble wrap, and millions of people's lives have been forever changed by this amazing product.
Are you a bubble wrap afficionado?
 

Ok, maybe not everything, but last year definitely has revealed some hard truths about the current market.
Here is what I told the Wall Street Journal's Smart Money.com I thought were critical things to remember as a buyer or seller going into 2010.

1. Vetting your agent: 2010 will be the year where the smart consumer definitely wants to be working with someone who knows the market, and financial environment they are working in.
For a buyer, if they are looking at distressed property, be sure to have your agent thoroughly explain what it means to be a buyer of a short sale or foreclosure property. It is not the same environment as buying from a traditional home seller. Short sales are anything but short, and banks do not negotiate or react the same way as an individual selling their home. For both sellers and buyers, being aware of how to work through the system to a successful closing takes patience and an agent who understands the complexity of these transactions.

2. Pricing. It is all about your competition on the market. Sold comparables have limited value. As they say in the rest of the financial world, past performance is not indicative of what your can expect as a return in today's market.

The landscape seems to change daily when it comes to what we can and cannot do at the closing table.
The newest twist comes January 1st, when buyers will no longer be allowed to bring funds of more than $50,000 to the closing in the form of a bank check.

Amounts in excess of this, needed to close, must be wired in their entirety to the title entity, and checks under this amount which in aggregate exceed the $50,000 will also not be allowed and the total amount of the funds will need to be wired.
This will inevitably lead to some delays and extended closings, so be prepared and discuss in detail with your clients, their attorney and the lender how these large sums are going to get to the closing table on time.

Look here for more details and suggestions to be sure your clients are protected and aware of this new rule.

By the way, Twitter was started by Jack Dorsey, our own Carol Dorsey's nephew.

See below, from Google, yesterday. 

No real estate agent should be without a handful of business cards.
Here are some options for when you find yourself empty handed or
dealing with a client who is all about technology.

The free Web site DubMeNow
lets you create a digital edition of your card. You can
share your mobile card via text or e-mail, and your contact information
is saved into the person's address book and automatically updated
whenever you make a change. DubMeNow also can locate where and when you
met your contact, in case you have a memory lapse.

Or try BusinessCard2 where you can create an online card with a professional flair. The
card's skin is sleek and has three tabs to help new and existing clients get
to know you and your business. There's an info tab where you can list
your experience and another tab for listing your social networks.
BusinessCard2 also can embed your business card link in e-mail messages
or on your blog.

Thank you Laura Marquardt, Victor Majovsky, SourceOne associates and local celebrities and sponsors for the wonderful Sunshine Kids Foundation fundraising event in September. The day of golf, martini bingo, dinner and silent auctions were a huge success and we are proud to be part of such a giving and talented team of individuals.

www.SunshineKidsFundraiser.com   www.SunshineKids.org

See Martini Bingo Video here on our YouTube channel and Event Slideshow at this link  http://www.slide.com/r/lgTSctH55D_S8tM9y7eF9hfrYiuBp1R9?previous_view=mscd_embedded_url&view=original

Re-posted with permission of the author, Brian Brumpton. Take a few minutes to consider the valuable lessons in Brian's Activerain blog post of 09-09-09.

"Project Impact" Dominating real estate the Walmart way

Ok, maybe not an expert, but here is a great new service you can use to keep up with ever changing mortgage climate.

Get Fannie Mae E-Mail News Updates

Fannie Mae has introduced "E-mail News" to help real estate professionals stay updated on new policies, products and other topics important to their business.  If you're interested in keeping up with important news and information on Fannie Mae REO, short sales, local events, policy announcements, and more, please sign up here <http://www.fanniemae.com/homepath/realestateprof/index.jhtml> . This service is free and you may unsubscribe at any time.