The Naperville Real Estate Voice - Local Real Estate News and More...

I was talking to a potential client yesterday that brought up some valid concerns about buying a short sale home. I answered her questions, but then started thinking about other buyers that may not know to ask these questions. They are important facts about short sale/foreclosured homes being sold as-is, that buyers need to be aware of so they know going in what to expect when buying a short sale or foreclosed home.

Of course the majority of the time, not "all" but majority these issues have to do with vacant short sale/foreclosed homes.

Besides the visual items that can be seen, for example; missing kitchen cabinets, missing hot water tanks, missing furnaces, missing doors and, the latest, which I could not believe, missing brick paver patio.

There are items that cannot be seen, these I believe are most costly, and therefore especially important for a buyer that is buying an short sale/foreclosed home not to overlook, because in the long run the short sale/foreclosed home might not be the "great deal" after all. [Remember the Money Pit?]

1. Winterization - If the short sale/foreclosed home has not been winterized before the temperature falls below freezing, there can be major issues. When a home has been winterized the hot water tank has been flushed and the pipes have been cleared of all water. If the home has not been winterized, what happens is that freezing water expands causing damage to the pipes and when the water thaws or is turned back on, the chance of the pipes leaking is very high. A sign to look for - look at the toilet tank/s, if the toilet tank/s is cracked, then the home was not winterized in time.

2. Mold - Big cost here. I cannot stress strongly enough to have the short sale/foreclosed home tested for mold. If mold is found in the home and depending how much mold, the cost to have the home re-mediated [mold removed] can range from $1500 - $20,000 or more.

3. Special Service Area or SSA - Areas with new homes that were originally priced lower and did not have the infrastructure cost [i.e. streets, landscaping,water lines and sewer systems ] built into the cost of the home. This is an assessment that is added to the tax bill. Depending on the home, the assessment can range from $1000 - $3000 per year and stay with the home for a period of 20 - 30 years. I see it over and over again, knowing for a fact that subdivision has the SSA but it's not disclosed on the short sale/foreclosed listing.

Lesson here is to always, always, always have a home inspection, even if the short sale/foreclosure home is being sold as-is, the buyer has the right to have an inspection done and the result will let them know whether it is a "great deal" or not.

Second, if the buyer or buyer's agent is not familiar with the area, research, research, research.

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Maria Mastrolonardo is a Realtor Associate with RE/MAX of Naperville and has been assisting home-buyers and home-sellers since 1997.  Maria can be reached at (630) 248-6077 or email: mmastrolonardo@gmail.com

Servicing the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenvinlle, Wheaton, Woodridge or other surrounding areas.

I believe buyers still have many questions regarding the first-time homebuyer's tax credit.

Real estate professionals in the following video give an explanation of the tax credit. Keep in mind that the November 30th deadline is fast approaching.

Related posts:

Naperville Home Buyers ~ Who Qualifies for the $8000 Tax Credit?

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Maria Mastrolonardo is a Realtor Associate with RE/MAX of Naperville and has been assisting home-buyers and home-sellers since 1997.  Maria can be reached at (630) 248-6077 or email: mmastrolonardo@wowway.com

Servicing the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.

Now that you have read Tips for First-Time Homebuyers: (Step One) -- you know your housing budget --have a pre-approval letter from your mortgage professional -- it's time for your home search - right?

But where do you start?

1. Do research online and find out how much your money gets in different cities -- as an example, the city of Naperville is comprised of four different zip codes, with a variation of average home sale price for each zip code.

2. What is your lifestyle? Do you prefer City or Suburbs? How far are you willing to commute to work? What forms of transportation will you need?

3. Learn about different neighborhoods and home styles that fit your lifestyle.

4. Browse listings -- knowing what is out there will help target your search.

5. As soon as you know your target area and are searching seriously, hire a Realtor. A Realtor can give you the in's and out's of an area, help you find the home that matches your needs and research the current market value to make sure you are not overpaying for that home.

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Maria Mastrolonardo is a Realtor Associate with RE/MAX of Naperville and has been assisting home-buyers and home-sellers since 1997.  Maria can be reached at (630) 248-6077 or email: mmastrolonardo@wowway.com

Servicing the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.

Are you tired of throwing your money away on rent? Thinking of buying your first home?

Taking that first step toward home ownership is always the hardest one. But having a plan, a road map to follow, will make that first step much easier. 

"Action without planning is the cause of all failure.  Action with planning is the cause of all success."              - Brian Tracy

Step 1 -

Here are some questions you might first ask yourself:

Can I afford it?  The worst thing you can do is to get into a situation where you become house poor. Living a lifestyle with an affordable house payment gives you the freedom to enjoy your life and not worry about making your payment each month. Using a financial worksheet will help you determine how much you can comfortably afford to spend on a home.

Do I have enough money saved?  There are costs involved when purchasing a home and knowing what those costs are will help when budgeting for a home purchase. Costs may include; loan application fee, inspection fee, closing costs and down payment. It's best to talk to a mortgage professional who will go over costs with you and will work out a plan that best fits your needs.

Do I have a stable work life?  Lenders like to see employment stability. A steady income and a solid career record in the same field, will give lenders reassurance that you have the ability to meet your monthly obligations. 

Answering these questions and knowing where you are financially will put you on the right road that will lead to a successful home purchase.

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Maria Mastrolonardo is a Realtor Associate with RE/MAX of Naperville and has been assisting home-buyers and home-sellers since 1997.  Maria can be reached at (630) 248-6077 or email: mmastrolonardo@remax.net

Servicing the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.

Who qualifies for the 2009 First-Time Homebuyer Tax Credit?

First-Time Homebuyer Definition:

Defined as an individual who has NOT owned a primary residence at any time during the three years prior to the date of purchase. (If married, both must meet the requirement)

Details of the 2009 First-Time Homebuyer Tax Credit:

• The Tax Credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).

• Purchase any single-family residence, (including condos and townhomes) that will be used as a primary residence between January 1, 2009 - December 1, 2009

• Maximum credit amount $8,000

• It is a true credit and does not need to be repaid as long as you occupy the home for 3 years. (If the home is sold prior to three years of ownership, the tax credit must be repaid.)

• It is a REFUNDABLE Tax Credit, meaning that if your total tax liability in the given year is less than $8,000, the IRS will send a refund for the balance.

• It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

I hope that you will take advantage the Tax Credit and of this great home buying market. Interest rates are at an all time low and many home prices in Naperville are currently lower than they have been in years!

Affordable homes in Naperville under $300,000 with 3+ bedrooms

If you would like more information regarding the 2009 First-Time Homebuyer Tax Credit, please contact me by phone/text at (630) 248-6077or eMail at mmastrolonardo@remax.net

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Thanks for reading my Naperville Illinois Real Estate Blog!

Maria Mastrolonardo, Realtor(R)

RE/MAX of Naperville

Cell: (630) 248-6077

Web: Naperville Area Home Search

eMail: mmastrolonardo@remax.net

I can help you purchase a home or sell your home in the towns of: Naperville, Aurora, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton, Woodridge or other surrounding areas.