Did you know? On an
average sale, approximately $28,581 is generated and goes into the local
economy. Realtors, movers, inspectors, attorneys, etc all realize an
economic benefit from a sale of a home. The real estate industry is
crucial to our economy. Lets hope things get better in 2013.
Posted by Bradford Miller Law, P.C.
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Are you interested in doing a short sale? Bradford Miller Law, PC offers free legal representation to homeowners seeking a short sale. Contact our office today for a free consultation.
Key
words: Chicago short sale attorney, Chicago landlord tenant law
attorney, Chicago estate planning attorney, Chicago real estate
attorney, Chicago real estate lawyer, Chicago building code violations,
short sale attorney Chicago. This is intended to be advertising. Please
consult with an attorney before acting on any information given here.
Sunday, January 20, 2013
Tuesday, January 15, 2013
Seller closing costs
I often get asked "what kind of closing costs can I expect when I am selling my home?"
First, let me clarify that I consider realtor commissions, taxes, title related fees, etc all to be "closing costs." Others may only call title-related fees "closing costs."
For Sellers, the largest closing cost tends to be the Realtor commission. This commission is typically 5% of the sale price. The next largest cost is real estate property taxes. In Cook County, we pay property taxes in arrears - which means that in 2012, we paid the 2011 property taxes. So when you sell your home, you must give a property tax credit to the Buyer for the time you spent in your home in the current year. This property tax credit can be negotiated and a formula is used to calculate the actual amount. The remaining costs include title related fees, city, county and state taxes.
Overall, Sellers can typically expect to pay around 8% of the sales price in total closing costs. This includes the Realtor commissions of 5%, taxes and title related fees. For example, on a $200,000 home, the Seller can expect to pay around $16,000 in total closing costs. Again, each transaction is different, and if no Realtors are involved, the closing costs will be much lower since there will be no commissions to pay.
Whether you live in Chicago or the suburbs, if you are trying to sell your home contact our office for a free consultation. Our office phone number is 312-238-9298.
Posted by Bradford Miller Law, P.C.
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Key words: Chicago short sale attorney, Chicago eviction attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
First, let me clarify that I consider realtor commissions, taxes, title related fees, etc all to be "closing costs." Others may only call title-related fees "closing costs."
For Sellers, the largest closing cost tends to be the Realtor commission. This commission is typically 5% of the sale price. The next largest cost is real estate property taxes. In Cook County, we pay property taxes in arrears - which means that in 2012, we paid the 2011 property taxes. So when you sell your home, you must give a property tax credit to the Buyer for the time you spent in your home in the current year. This property tax credit can be negotiated and a formula is used to calculate the actual amount. The remaining costs include title related fees, city, county and state taxes.
Overall, Sellers can typically expect to pay around 8% of the sales price in total closing costs. This includes the Realtor commissions of 5%, taxes and title related fees. For example, on a $200,000 home, the Seller can expect to pay around $16,000 in total closing costs. Again, each transaction is different, and if no Realtors are involved, the closing costs will be much lower since there will be no commissions to pay.
Whether you live in Chicago or the suburbs, if you are trying to sell your home contact our office for a free consultation. Our office phone number is 312-238-9298.
Posted by Bradford Miller Law, P.C.
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
http://www.bradfordmillerlaw.com
Key words: Chicago short sale attorney, Chicago eviction attorney, Chicago estate planning attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago building code violations. This is intended to be advertising. Please consult with an attorney before acting on any information given here.
Monday, January 14, 2013
Chicago’s Midrange Homeowners Taking the Hardest Hits
Note: I think this article brings up good points. If you are a "midrange homeowner" that needs help, call our office for a free consultation.
By Dennis Rodkin, Chicago Magazine
When Zillow announced last week that Chicago is the country’s number one market for homebuyers, I snarkily replied on Twitter that, by the same token, Chicago is the number one place where sellers are taking it in the shorts. Two reports out that same week backed me up, offering further detail on how hard Chicago’s prolonged housing stupor is impacting local homeowners—whether they’re hoping to sell or just monitoring the value of their largest investment.
Released by DePaul University’s Institute for Housing Studies, the Cook County House Price Index for the third quarter of 2012 found that prices for midrange single-family homes and condos took the biggest hit. Houses in the middle tier were down 10 percent from a year earlier, while those in the lowest price tier were down 2 percent and those in the highest were up less than 1 percent. Middle-priced condos were down 13 percent; the lowest-priced were down 11 percent, the highest, 2 percent.
(The institute groups properties into tiers using calculations that are too complex to lay out here. Its director, Geoff Smith, says that the best way to picture the tiers is this: Low-value homes have a median price of $74,000; middle-value have a median of $165,000; and high-value homes have a median of $438,500.)
And from FNC, a mortgage technology company, came a report that said Chicagoans have the least liquidity of homeowners in any major U.S. city. In other words, they have such low equity that selling to move is harder than in any other city.
“It’s more difficult to get out of their homes without losing money, and their inability to [move] makes the Chicago economy slower to recover than others,” says Robert Dorsey, a founder of FNC and its chief of data and analytics. His report also noted that Chicago sellers, when they do sell, take the biggest price cuts: 13.9 percent, on average.
Together, the two reports paint a gloomy picture for Chicago’s middle-class homeowners: Their home values are still slipping, and they can least afford to sell. Each probably pushes the other. “Middle-class folks are going to have most of their wealth tied up in home equity, which in many cases has evaporated,” says Smith. “So you have a lot of folks who are trapped.”
Owners of higher-value properties typically bought their homes with a larger equity stake than middle-class owners, Dorsey notes. Smith adds that, given their comfortable financial footing, those wealthier homeowners may also have been less pressed to refinance and pull equity out of the home during the boom years. At the lower end, both analysts say, the stronger prices are largely the result of investors buying up foreclosed properties in large numbers.
Solutions? “There is no doubt that unless there is a big influx of jobs in the Chicago area, your recovery will stay slow,” Dorsey says. “A lot of [housing’s] recovery will be driven by the unemployment rate, and Chicago is still one of the high unemployment cities.” For the middle-class homeowner in particular, Smith says, “there needs to be bigger consideration of short sales and principal forbearance so people can afford to move.”
By Dennis Rodkin, Chicago Magazine
When Zillow announced last week that Chicago is the country’s number one market for homebuyers, I snarkily replied on Twitter that, by the same token, Chicago is the number one place where sellers are taking it in the shorts. Two reports out that same week backed me up, offering further detail on how hard Chicago’s prolonged housing stupor is impacting local homeowners—whether they’re hoping to sell or just monitoring the value of their largest investment.
Released by DePaul University’s Institute for Housing Studies, the Cook County House Price Index for the third quarter of 2012 found that prices for midrange single-family homes and condos took the biggest hit. Houses in the middle tier were down 10 percent from a year earlier, while those in the lowest price tier were down 2 percent and those in the highest were up less than 1 percent. Middle-priced condos were down 13 percent; the lowest-priced were down 11 percent, the highest, 2 percent.
(The institute groups properties into tiers using calculations that are too complex to lay out here. Its director, Geoff Smith, says that the best way to picture the tiers is this: Low-value homes have a median price of $74,000; middle-value have a median of $165,000; and high-value homes have a median of $438,500.)
And from FNC, a mortgage technology company, came a report that said Chicagoans have the least liquidity of homeowners in any major U.S. city. In other words, they have such low equity that selling to move is harder than in any other city.
“It’s more difficult to get out of their homes without losing money, and their inability to [move] makes the Chicago economy slower to recover than others,” says Robert Dorsey, a founder of FNC and its chief of data and analytics. His report also noted that Chicago sellers, when they do sell, take the biggest price cuts: 13.9 percent, on average.
Together, the two reports paint a gloomy picture for Chicago’s middle-class homeowners: Their home values are still slipping, and they can least afford to sell. Each probably pushes the other. “Middle-class folks are going to have most of their wealth tied up in home equity, which in many cases has evaporated,” says Smith. “So you have a lot of folks who are trapped.”
Owners of higher-value properties typically bought their homes with a larger equity stake than middle-class owners, Dorsey notes. Smith adds that, given their comfortable financial footing, those wealthier homeowners may also have been less pressed to refinance and pull equity out of the home during the boom years. At the lower end, both analysts say, the stronger prices are largely the result of investors buying up foreclosed properties in large numbers.
Solutions? “There is no doubt that unless there is a big influx of jobs in the Chicago area, your recovery will stay slow,” Dorsey says. “A lot of [housing’s] recovery will be driven by the unemployment rate, and Chicago is still one of the high unemployment cities.” For the middle-class homeowner in particular, Smith says, “there needs to be bigger consideration of short sales and principal forbearance so people can afford to move.”
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
advertising. Please consult with an attorney before acting on any
information given here.
Sunday, January 13, 2013
Do you owe more on your mortgage than your home is worth?
If so, you may want to consider a short sale. Millions of Americans are in the same position and were able to sell their home through a short sale. At Bradford Miller Law, PC we handle short sales every day. And we charge you NO LEGAL FEES! If you need to sell your home but owe more than it is worth, call our office today for a free consultation.
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
advertising. Please consult with an attorney before acting on any
information given here.
Wednesday, January 9, 2013
Did the Housing Market Escape the Fiscal Cliff Unscathed?
We all heard about the "fiscal cliff" and the
midnight deal that temporarily dealt with the problem but how did this
agreement affect the real estate market? The below article talks about
that and more.
Courtesy of Chicago Agent Magazine
by PETER RICCI
We knew it would go down to the wire –
after countless discussions, negotiations andstories by the media, Congress
finally reached an agreement to avert the so-called “Fiscal Cliff,” and the
housing market, upon initial impressions, seems to have escaped the party
relatively unscathed.
Not only is the mortgage interest tax deduction still in
place, the Mortgage Forgiveness Debt Relief Act of 2007 was extended for
another year and even the deductibility of mortgage insurance premiums for
select homeowners was renewed through 2013. That all sounds great, but does the
nature of Congress’ bargain bode unwell for housing?
The Housing Market and the Fiscal Cliff: Dancing Cheek to Cheek
As HousingWire noted earlier today,
the immediate outcomes of the American Taxpayer Relief Act of 2012, as the
fiscal cliff bargain was called, were a net positive for the housing market:
·
The mortgage insurance premium
deduction, which has expired at the end of 2011, allows eligible borrowers who
itemize their tax returns (and who have incomes of less than $100,000 per year)
to deduct 100 percent of their annual mortgage insurance premiums.
·
The Mortgage Forgiveness Debt
Relief Act of 2007, which was set to expire on Dec. 31 of 2012, was extended
for 2013, so for another year, homeowners engaging in short sales will have
their debt reductions excluded from taxable income (though as we’ve covered
before, that only applies to
a specific kind of underwater homeowner).
·
Even the increase of the capital
gains tax rate from 15 to 20 percent for individuals earning more than $400,000
will have minimal impact on housing; as HousingWire explained, only if
individuals have the aforementioned income level and gain more
than $250,000 from the sale of a property will they be affected by the higher
rate.
·
And as RisMedia noted, no
trade group was more active than the National Association of Realtors for
housing legislation in 2012, so it’s likely that NAR’s political clout
reflected positively on housing in the negotiations.
Housing Market – Sequester This!
Of course, as with many things in Washington, it’s not a
simple matter of President Obama signing the American Taxpayer Relief
Act of 2012 and all our problems going away. As NPR wrote in
an excellent summary of the act and its importance in the fiscal cliff discussions,
the U.S. government still faces the same budget deficits that it did in 2012;
rather than addressing those deficits, the act instead targets the taxation
side of the fiscal cliff discussions, and delays any discussions of the deficit
(and the automatic spending cuts, sometimes called “sequestration,”
that would take place) to March.
And that fact, said Spencer Cowan of the Woodstock Institute
here in Chicago, should keep real estate agents on their toes.
“Clearly, this is a very temporary situation,” Cowan said.
“I wouldn’t feel safe about anything.”
Between the government’s budget deficit, the debt ceiling
and the fragmentary nature of our current Congress, Cowan said all are problems
that still need to be addressed, and though housing dodged a bullet in the
preliminary discussions, it could still become a bargaining chip come March,
when the sequestration talks resume – and the coveted mortgage interest tax
deduction could definitely be a part of those discussions.
Posted by Bradford Miller Law, PC
A downtown Chicago law firm practicing in the areas of real estate and estate planning. We offer free representation for homeowners contemplating a short sale. For a free consultation, contact our office at 312-238-9298.
Monday, January 7, 2013
Even as prices rise, owning easily beats renting cost in Chicago
Note: I saw this article and thought it was pretty good...courtesy of chicagorealestatedaily.com
By: David Lee Matthews December 27, 2012
2012 may be remembered as the year home prices started rising again, but owning remains significantly cheaper than renting in the Chicago area.
The cost of renting was about 31 percent higher than the average monthly mortgage payment here in the third quarter, according to a report by Deutsche Bank A.G. That disparity, which factors in property taxes, insurance, and other homeowner costs, was greater in Chicago than in all but seven U.S. metropolitan areas tracked by the German bank.
The ratio has flipped over the past five years, as home prices and interest rates have plunged and apartment rents have jumped. Before the bubble burst in 2006, the cost of renting here equaled 58.5 percent of the cost of owning — its lowest point — but rose sharply in the ensuing years, peaking at 148.9 percent in first-quarter 2012, according to Deutsche Bank. Put another way, the cost of renting vs. owning is now more than double what it was before the crash.
The spread reflects the record-high rents landlords are charging in the wake of the housing bust. Though low interest rates and still-depressed prices have fueled a recent rebound in the residential market, some would-be homebuyers are still unwilling to take the plunge.
“Everybody feels if they buy a place, they need to stay there a long time,” said Prudential Rubloff Properties broker Jeff Lowe. “When somebody tells you they're renting for awhile, some of their friends might actually be jealous.”
The S&P/Case-Shiller index of Chicago-area single-family home prices bounced back earlier this year but fell 1.5 percent from September to October, its second straight monthly decline. The index, however, was still up 4.3 percent for the year.
Just seven metro areas — Atlanta; Orlando, Fla.; Cleveland, Tampa, Fla.; Jacksonville, Fla.; Rochester, N.Y., and Las Vegas — posted higher rent-buy ratios in the quarter, according to the Deutsche Bank report. The national average was 107.8 percent.
“Not surprisingly, regional rent-buy results continue to highlight a bifurcation between core gateway markets in the Northeast and California, where renting oftentimes remains the cheaper option, and markets where housing has been hardest hit, namely Florida and the Midwest,” the Deutsche report said.
Owning could remain the less expensive option in the Chicago area for a while longer, based on another Deutsche Bank report forecasting that prices here will fall another 2.9 percent by next June, and 8.6 percent by June 2015. Chicago's three-year outlook is third-worst among other cities in the report, trailing only Las Vegas (-13.1 percent) and Sacramento, Calif. (-9.5 percent). Deutsche expects home prices across the nation to rise 6.3 percent over the next three years.
Yet apartment landlords soon may have a harder time hiking rents, especially downtown, where developers will complete nearly 4,700 apartments over the next two years. They will lose some tenants whatever they do, Mr. Lowe said.
“People don't want to rent forever,” he said. “Even if (rents) start increasing consistently 1 or 2 percent, I think financially people will be comfortable buying again.”
By: David Lee Matthews December 27, 2012
2012 may be remembered as the year home prices started rising again, but owning remains significantly cheaper than renting in the Chicago area.
The cost of renting was about 31 percent higher than the average monthly mortgage payment here in the third quarter, according to a report by Deutsche Bank A.G. That disparity, which factors in property taxes, insurance, and other homeowner costs, was greater in Chicago than in all but seven U.S. metropolitan areas tracked by the German bank.
The ratio has flipped over the past five years, as home prices and interest rates have plunged and apartment rents have jumped. Before the bubble burst in 2006, the cost of renting here equaled 58.5 percent of the cost of owning — its lowest point — but rose sharply in the ensuing years, peaking at 148.9 percent in first-quarter 2012, according to Deutsche Bank. Put another way, the cost of renting vs. owning is now more than double what it was before the crash.
The spread reflects the record-high rents landlords are charging in the wake of the housing bust. Though low interest rates and still-depressed prices have fueled a recent rebound in the residential market, some would-be homebuyers are still unwilling to take the plunge.
“Everybody feels if they buy a place, they need to stay there a long time,” said Prudential Rubloff Properties broker Jeff Lowe. “When somebody tells you they're renting for awhile, some of their friends might actually be jealous.”
The S&P/Case-Shiller index of Chicago-area single-family home prices bounced back earlier this year but fell 1.5 percent from September to October, its second straight monthly decline. The index, however, was still up 4.3 percent for the year.
Just seven metro areas — Atlanta; Orlando, Fla.; Cleveland, Tampa, Fla.; Jacksonville, Fla.; Rochester, N.Y., and Las Vegas — posted higher rent-buy ratios in the quarter, according to the Deutsche Bank report. The national average was 107.8 percent.
“Not surprisingly, regional rent-buy results continue to highlight a bifurcation between core gateway markets in the Northeast and California, where renting oftentimes remains the cheaper option, and markets where housing has been hardest hit, namely Florida and the Midwest,” the Deutsche report said.
Owning could remain the less expensive option in the Chicago area for a while longer, based on another Deutsche Bank report forecasting that prices here will fall another 2.9 percent by next June, and 8.6 percent by June 2015. Chicago's three-year outlook is third-worst among other cities in the report, trailing only Las Vegas (-13.1 percent) and Sacramento, Calif. (-9.5 percent). Deutsche expects home prices across the nation to rise 6.3 percent over the next three years.
Yet apartment landlords soon may have a harder time hiking rents, especially downtown, where developers will complete nearly 4,700 apartments over the next two years. They will lose some tenants whatever they do, Mr. Lowe said.
“People don't want to rent forever,” he said. “Even if (rents) start increasing consistently 1 or 2 percent, I think financially people will be comfortable buying again.”
Posted by Bradford Miller Law, P.C.
A Law Firm Dedicated To Real Estate
Law, Landlord Tenant Law, and Estate Planning
134 N. LaSalle, Suite 1040
Chicago, IL 60602
312-238-9298
Offering
free legal representation to homeowners seeking a short sale
Key words: Chicago short sale
attorney, Chicago landlord tenant law attorney, Chicago estate planning
attorney, Chicago real estate attorney, Chicago real estate lawyer, Chicago
building code violations, short sale attorney Chicago. This is intended to be
advertising. Please consult with an attorney before acting on any
information given here.
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