Pricing your home correctly is still the key in today's market in Norridge

The Chicago Tribune, quoting data from Clear Capital, a Truckee, Calif.-based provider of real estate valuation data to investors, reported that in the past 90 days, 43 percent of home sales in Cook County have been bank-owned foreclosures.

They've sold faster, too, with an average local marketing time of 53 days for a foreclosure compared with 73 days for a traditional sale. The reason for this is simple: Bank-owned properties feature sellers who are Wall-Street finance-types with no emotional attachment to the home. Their decisions are made on raw data - like square footage and mortgage-margins. They don’t put these properties in the newspaper, but exclusively online because they cannot afford to lose any more money or time. And while they reject crazy buyer offers with the flick of a pen, they also set prices squarely in the market. Sometimes, even lower than average, because they are unemotionally trying to sell the property, without ego. They price it to attract buyers and sell. So, when your neighbor’s house has been on the market for a year –it’s probably because he is trying to sell it for what he could have gotten in 2005, not 2009! Pricing something right is essential and is why you need a Realtor to help you. I cannot stress how important this is, especially in this competitive market.

Luckily the foreclosure picture in Norridge is a lot better than the rest of Cook County. Right now in Norridge, of the 99 single family homes currently on the market, less than five are currently bank owned. But when you combine the bank-owned with those in pre-foreclosure, it brings the number up to 15, or 15%, still less than the 43 percent in Cook County overall but enough that it has impacted home values in town.



How much?
Well I analyzed data from the last five years and discovered that prices this year are averaging 63% of its high in 2005, down to $260,217 from $410,922. Keep in mind that 2005 was the peak of the speculation frenzy, when every Tom, Dick and Harry believed he was going to be the next Donald Trump. What resulted was a price run-up that was way out of line with reality. So, while prices may be lower than they ideally should be right now, I believe the current market is closer to reality than it was in 2005.

Please analyze the chart that I put together and let me know if you have any questions or comments. Post them on this blog or email me at Chiarito@kw.com

You’ll discover that prices probably have bottomed-out and that market time has actually decreased – a lot closer to the quick market times of 2005 and 2006 than the previous two years WHEN LISTED WITH A REALTOR. For those who still attempt to sell on their own, market times are longer than they’ve ever been. Another example as to why it is essential to enlist the help of a professional.

The stats I’ve compiled are definitely interesting and can spark a lot of discussions. I look forward to helping answer your questions and helping you to sell your home quickly and for the most money possible.

Baseball Sunrise @ Norridge Park "Let's Play Two"

Picture of the Week - Intense Debate on the Bocce Court! (Norridge Park)

Harwood Heights barred from stimulus funds

Harwood Heights is one of three suburban Chicago police departments that have been barred from the $1 billion in federal stimulus funds headed for law enforcement agencies. A total of 26 departments from across the nation have been barred.

Harwood Heights, Calumet Park and Stone Park received funds from the Community Oriented Policing Services program formed in 1995. But their failure to meet the program's guidelines will bar them from stimulus funds.

According to federal officials, Stone Park failed a requirement to retain police officers a year after the COPS grants expired. Calumet Park misspent about $37,500 in money from the program. Harwood Heights misspent $362,000.

Harwood Heights officials declined to comment.

Happy Easter and Happy Passover!

One of the great things about Norridge is the "community-feel" of the town. This afternoon I arrived home and a few minutes later heard some voices outside. I did not think much of it at first but after a few minutes I wandered to my front window to see where it was coming from. It turns out that it was parishioners from Divine Savior -- doing their Stations of the Cross Procession on Good Friday. Turns out the front of my house is one of the stations -- I hope this is a good thing for me!
Whatever your faith, I hope you have a great weekend and Happy Easter!

Village Trustee Named Acting Norridge President

Norridge Village Trustee Ronald Oppedisano is now the acting village president.

According to a report in the Pioneer Press, following the March 20 death of Village President Earl Field and funeral services Wednesday, Oppedisano was chosen to serve as acting village president during a special meeting Thursday night at Village Hall. The motion was made by Trustee Dennis Stefanowicz and seconded by Trustee Dominic Falagario.

Oppedisano most recently served as the Chairman of the Streets, Sidewalks and Alleys, and Information Technology Committee.

In addition, as a Trustee, Ron also serves on the Law and Ordinance Committee and on the Village Properties, Environment and Economic Development Committee; and he has led the way for the formulation of a Master Plan for the future development of our Village. Ron is also a member of the Emergency Telephone System (911) Board.


For more information on Oppedisano, click here

First -Time Homebuyer Credit Form

As part of the American Recovery and Reinvestment Act of 2009, the IRS has officially released Form 5405 -- better known as the First-Time Homebuyer Credit Form.
True to tax code standards, the 10-field form is accompanied by 3 pages of instructions. Form 5405 is a helpful, go-to resource for home buyers with questions about the tax credit. For example, the form distinguishes tax consequences for homes bought in 2008 versus 2009, and clearly defines the term "first-time home buyer".
In addition, Form 5405 highlights the math behind the tax credit.

In general, the First-Time Homebuyer Credit is equal to the lesser of:
$8,000 for homes bought in 2009
10 percent of the home's purchase price

Married couples filing separately are entitled to half of the expected credit, and homes sold within 3 years are subject to a credit repayment in the year the home ceases to be the "main home".

Form 5405 is a comprehensive reference. However, be sure to check with your accountant for specific questions about your personal returns and how the First-Time Homebuyer Credit may impact your finances. There is no substitute for professional, paid advice.
Download the form here!
For more information vital to first-time buyers, click here!