Real Estate Information

Let’s send the Summer of 2011 off with a bang! On August 26th & 27th two Champaign County  communities turn their downtown areas into a festival. 

The Urbana Business Association is hosting the 36th Annual Sweetcorn Festival & The Mahomet Area Chamber of Commerce is converting downtown Mahomet into the Sangamon River Music Festival.   Both communities invite you to come out and spend the weekend with them.  

In Downtown Urbana the live music line up is fabulous!

Friday:

5:30 – 6:45 THE BRAT PACK

7:15 – 8:45 The Tons O’ Fun Band

9:15 – 10:45 Headlining – The Boat Drunks

Saturday:

6:00 – 7:00 Lou Dibello Band

7:30 – 8:15 The Feudin’ Hillbillys

9:00 – 10:30 SURVIVOR

For a complete list of activities visit http://urbanabusiness.com/events/sweetcorn

If you are looking for a slightly smaller venue  you cannot go wrong with the Sangamon River Festival in Downtown Mahomet ! I love the small town vibe this festival offers.

So no matter what you choose this weekend you have no reason to walk in Monday morning and say you did nothing! Because if you do you missed out on 2 of the most popular events in Champaign County! 

Hope to see you there!

Dawn Mohr

Despite what you might hear about our local real estate market, there are homes selling.  In fact, hundreds of homes per month are sold by the members of the Champaign County Association of Realtors.  Our marketplace appreciated over the last several years at a steady rate, therefore it has declined at only a nominal rate. There are still hundreds of homes that will sell this year, so don't be afraid of our market.  It is a beauty contest and a pricing war.  You must be the most attractive home and priced very well.   Be realistic with your price, proactive with staging your home and prepare for the best.

• You recently purchased a home for less than the amount of the current assessment.
• You have had your home on the market and it is listed under the current assessed value.
• Your assessment is higher than others in your neighborhood.

While living in Champaign County is a treat in itself when it comes to the 4th of July Freedom Celebrations, Champaign County has plenty of Hot Spots!  If you are looking for a large parade or a small town atmosphere, Champaign County really does have it all!

In Champaign-Urbana the family fun starts at 1:05 with the parade. You definatley don’t want to be late! The best locations fill up fast!  For a parade map and complete schedule of the holiday events visit http://July4th.net After the parade you will want to make your plans to head over to Dodd’s Park for the festivities. Captain Rat and the Blind Rivets, a local, legendary 50′s and 60′s band will take the stage at 7:00 followed by the annual firework display.

If you are looking for a small town atmosphere this year head on over to Seymour for their annual 4th of July parade. The parade begins at 10:00 followed by a car show and many other family filled events throughout the day.

My personal favorite “Hot Spot” in Champaign County is in Mahomet at The Lake of the Woods Forest Preserve. I have been to several firework shows over the years and the Light up the Lake Freedom Fest celebration has stolen my heart.  I will never forget that feeling I had the first year I attended the Freedom Fest, I remember thinking ‘this is really what it is all about.’  I don’t know if it was the music, the crowd singing in harmony to the National Anthem, the children playing in the park or watching the amazing firework display over the Lake as my friends and family lined the shore but I can tell you it is like a scene out of a movie. The feeling is surreal and it will stay with me forever.

Light up the Lake Freedom Fest is a fun filled family event that starts at 3:00 but if you would like to take full advantage of the day at picturesque Lake of the Woods, the boats will open at 1:00 and a live band will begin at 2:00. This year The Main Street Band is performing.  For those of you who do not plan on grilling out the concessions will open at 3:00 along with the fun family activities.  

Music in Motion, local DJ service will start at 5:00 and carry us onto the main event! They will Light up the Lake at approximately 9:00 so don’t be late! The firework display is set to music and it adds to the excitement.  You definately do not want to miss out on this funtabulous event! Plus the cost is very affordable at just $1 per person with children 5 and under FREE! For more information visit http://www.ccfpd.org/FreedomFest.html

I hope to see you there!

Dawn Mohr-Administrative Assistant for Gallivan & Associates.

Calculating the size of a house would appear on the surface to be a relatively easy task. However, as an appraiser, I constantly hear stories from owners, realtors and loan officers about differences in how rooms and basements are calculated. Why is it so hard?

There are different rules that the various real estate professionals play by. Realtors play by the rules set by the local MLS board. The Champaign County MLS for example, considers rooms/square footage below grade as being part of the basement, except  bi levels, tri levels and multi level houses. However, the MLS created a second measurement called “total finished area” in order to give recognition to quality finished basements and walk out basements. If a bedroom lacks a built in closet, it may not be counted as a bedroom in our MLS.  MLS rules also limit the countable square footage in a 1.5 story design to space with a wall height of 5+’ and a minimum ceiling height of 7’. Be careful though as each MLS has its own rules and procedures.

Appraisers on the other hand are typically guided by Federal mortgage guidelines put forth by Fannie Mae, Freddie Mac and other agencies. The most recent Fannie Mae selling guide requires appraisers to classify all below grade area as basement, regardless of style. Therefore, by Federal requirement, the lower level of a bi level or tri level is basement to most appraisers. This is also true of walk out basements even if they are finished. So a house listed as a 2000 square foot bi level in the MLS could show up on an appraisal with a square footage of 1000 square feet. Also, appraisers have no such category as “total finished area”.  Many older houses in our market predating 1920 were constructed with bedrooms lacking closets. This was very common prior to 1900.  To an appraiser, it may be reasonable to list a room lacking a closet as a bedroom. At the very least, the cost to add a simple closet would often be under $500 which would have little to no effect on the overall appraised value. Appraisers vary with regard to measuring 1.5 story designs. I personally like the 5’ wall height rule but we have no rule regarding a minimum ceiling height. So the finished attic on the MLS listing could wind up being square footage on the appraisal. Tax assessor’s typically follow State of Illinois rules which govern all township assessors in the state. If that is not complicated enough, Cook County has its own assessment system which is unique to Chicago!  Bottom line is to call you real estate professional with any questions.

Do you have a service/product for investors? A question a get quite frequently. The answer is "Yes". As an investor, I know what an investor is looking for. An investor doesn't care a cabinet door is loose or that there is a minor leak under the bathroom sink. An investor wants to know the condition of a

Furnace

Water Heater

Roof

The Structure

Electrical panel and it's components.

These items are usually the most expensive to repair or replace.

Feel free to check out our website for other services and information.

1. Not getting pre-qualified first.  You don’t want to “fall in love” with the perfect house, only to find out it’s out of your comfort range, or have “credit skeletons in your closet”.
2.  Not realizing the value of a Realtor.  Many homebuyers think they have to use the Realtor listing the house, or the same company, or not understanding the MLS system, OR (even worst) working with several agents at the same time.
3.  Not understanding the value of an Attorney.  An attorney is there to represent YOU, and YOUR best interest. 
4. Not understanding that the earnest money check will be CASHED.  The earnest money will be “credited back” at closing, but the actual check does get cashed and is deposited in the Real Estate Trust Account.
5.  The thought that you can borrow extra money to do minor improvements or cosmetic  upgrades at the same time you purchase.  This can only be done in conjunction with a construction loan. 
6.  That the Seller can help with downpayment.  The Seller can only help with closing costs and pre-paid expenses, but never with downpayment.
7.  Having every lender in town pull your credit report.  You have a right          to receive a copy of your credit report.  If you are shopping for    rates/closing costs take your report with you to each lender.
8.  A home inspection and the appraisal are two different items.  A home inspection is not required by the lender, an appraisal is.  You can choose the home inspector, you cannot choose the appraiser.
9.  You  cannot get “repair credit” at closing.  If there are repairs that need to be done on the property, they need to be completed prior to closing.  If you get credit from the seller for repairs, there is no assurance that those funds will correct the deficient issue.
10.  Not working with a local lender with experience.  The mortgage process and guidelines change rapidly.  You want to make sure you’ve chosen a Mortgage Professional that has the knowledge and experience to get you to your closing ON TIME.

My dad arrived in Champaign-Urbana in 1961, a transplant from St Louis, drawn like so many before him to the University of Illinois. With a new baby on the way, he gave in to his wife’s wishes and bought his first house in 1965, an 850 square foot tract house on Hollycrest Drive. Interest rates were low and financing a house was easy… if you had 20% for a down payment. Option #2; use FHA (government backed financing) which had lower down payment requirements. With the loose credit terms of the 1990s and 2000s, FHA loans almost became relics of a past generation. Almost. Then, in 2007 the happy go lucky days for the mortgage industry hit the wall. In a period of just a few months from 2007 to 2009, the subprime mortgage industry was gone. 100% financing, stated income loans, loose appraisals, no-doc loans, vanished. Someone smarter than me once said that history repeats itself.  And so we are back to a mortgage climate that our parents could have understood. 20% down or FHA. Now there are some exceptions but have no doubt FHA financing has suddenly become the preferred and often the only choice for mortgage financing. What does that mean from the appraiser’s point of view? It means that the bar is a lot higher for houses I am looking at. In order for a house to qualify as collateral for FHA, it must pass a litmus test which in all 50 states, falls on the shoulders of the appraiser. Sellers and Buyers as well as agents need to educate themselves on the expectation for these programs. Sellers in particular entrench themselves in the belief that their house should be sold “as-is” and that any “issues” that a buyer has with the condition of the property is the buyers problem. Maybe, but if you are in this category, don’t expect to be moving anytime soon. Conversely, many buyers enter the process feeling that they can work on repair items after the closing. If I had a nickel for every time a buyer has told me that their uncle is an electrician. As I like to say, “fixer upper and FHA” should never be used in the same sentence.  Most of the FHA items are common sense. No flaking paint, no deteriorated siding, no worn leaking roofs. It is a long list, but not an unreasonable one. For the sellers, be proactive. Get those small items tidied up before it hits the market. A ½ days work for a handyman can often pay for itself in attorneys fees arguing repair items. For buyers, scratch the old tired repair-laden houses off the list. As a final thought, FHA does not stipulate who is responsible for repairs that may be required, only that they be done prior to closing. Any costs for repairs are negotiable. Either way, spend some time talking about FHA with your agent before you start the buying/selling process and get ahead of the game.

There are several reasons why now is the time to buy a home.  Whether you are a first-time homebuyer, move up buyer or investor, you should take advantage of this market for several reasons.  First, homes have never been more affordable.  With mortgage rates at or slightly above rock bottom, you can’t afford to wait.  Prices will start to trend back up, which is another indication you should buy now.    Sellers are very motivated to sell right now.  Take advantage of that and capitalize.   Ownership costs are dropping below rental costs, so if you are a first-time homebuyer, don’t sign another lease.  Finally, home ownership remains at the core of the American Dream.    Take advantage of all of the above, and make your move today!!!