Eric Nurmi - C-U Real Estate Update

August 2011 Real Estate Update

Fri, 19 Aug 2011 07:29:28 -0800

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"...Highest quality of service."

We greatly appreciate Eric's prompt action and loyal dedication to providing the highest quality of service.

~ Jim & Amy Lee

Contest Your Property Taxes

This year I have seen several of my client's properties taxed at a higher value than what they actually sold for in this market. So, this month I wanted to make you aware of what you can do if you feel that your home is taxed higher than what it should be. Here are some qualifications that the county will use to potentially reassess your taxes:

1) If homes in your neighborhood have been selling lower than your assessed value.

2) If the assessed value is greater than 1/3 of your recent purchase or current appraisal.

3) If your property is currently listed for sale for less than the assessed value.

You only have until September 9, 2011 to make your appeal. Forms for residential, commercial, and farm land are available at:

http://www.co.champaign.il.us/BOR/borforms.htm

LOW INVESTOR RATES!

Wow, I have had to re-write this section several times as interest rates drop several times this week. I don't know if we have ever seen rates this low for investors. Today investor rates for single family homes are at 3.75% with 25% down on a 15 year fixed. Duplex rates are at 4.0%.

Opportunities:

There is a 3 bedroom home in Mahomet that will be coming for sale this week priced at $124,900.

Also, a duplex in South Urbana near vine with rents of $1,424mo is for sale. Asking price $144,000.

Eric's Notes

M any industry experts are weighing in on how the downgrade of the U.S.'s credit rating from Standard & Poor will effect interest rates for consumers. Across the board, they are expecting rates to rise. However, in a news report Tuesday, the Fed announced that they expect to keep interest rates low through mid-2013. This should allow more people to qualify for loans, and take advantage of these ultra-low interest rates. This should be attractive for investors looking to pick up properties that could cash flow well. Refinancing has also picked up. One lender, with whom I speak, with said that he can hardly keep up with the refinance orders.

Source: "Fed says it Will Hold Rates Fast Until mid-2013," MSNBC (Aug. 9, 2011)

Here are rates from yesterday:

FHA: 4.25%

Total payment on $100,000 loan: $812 mo

(includes P&I, T&I, and PMI).

Rural Development 100% loan: 4.125%

Total payment on $100k loan: $709 mo

(P&I, T&I).

Conventional 30 yr: 4.375%

Total payment on $200k loan: $1,339 mo

(P&I, T&I).

Conventional 15 yr: 3.5%

Total payment on $200k loan: $1,770 mo

(P&I, T&I)

Investment property (25% down) 15 yr: 4.0%

Total payment on $100k loan: $972 mo

(P&I, T&I)

As I was finishing the details of this newsletter today, new interest rates were posted. Here are the changes: FHA & RD are both now at 4.0%; Conventional 30 yr is 4.0% and 15 yr dropped to 3.25%. Investor Rates: 15 year fixed 25% down dropped to 3.75%!

* P&I: Principal & Interest, T&I: Taxes & Insurance, PMI: Mortgage Insurance

Rural Development does NOT have mortgage insurance.

UPDATE FROM LAST MONTH:

Last month I highlighted several top properties. The 2 bedroom condo at Capstone Quarters sold and closed for $10,000 less than similar 2 bedroom condo that sold the same day in this complex. Also, the foreclosure in Trails Edge (by Trails of Brittany) sold along with the historic 1960's home on Litchfield.

Closed in
July, 2011

For Sale in
July, 2011

Champaign-Urbana:
134 Homes
22 Condos
1 Land

Mahomet:
17 Homes
4 Condos
0 Land

Champaign-Urbana:
852 Homes
275 Condos
169 Land

Mahomet:
102 Homes
9 Condos
101 Land

Information from CCAR MLS Innovia

ERIC NURMI

REALTOR

RE/MAX Executive Club 2010

Short Sale & Foreclosure Resource (SFR)

Direct: (217) 898-3803

Office: (217) 355-0700

Sales Partner with Russ Taylor Team
2009 Fox Drive, Champaign, IL 61820

116 S. Lombard, Mahomet, IL 61853

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July Real Estate Update

Thu, 07 Jul 2011 14:16:20 -0800

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"Eric went above and beyond..."

Eric went above and beyond his responsibility in making sure that we were satisfied. We highly recommend using Eric Nurmi as our real estate agent. ~ Ryan & Joanna

Mortgage Rip-Off Scheme

The Chicago Tribune reported on a new scam targeting home owners tricking them out of a few months of mortgage payments. The "hand off rip-off" scheme sends a letter stating that the management of the loan has been transferred to a new company. There are mortgage transfer rules that you should be aware of so that this doesn't happen to you:

1) The mortgage servicing company should provide you a "goodbye" letter referencing a specific date your payment should be sent to a new company.

2) A few weeks later, a second letter will arrive from the new service provider that shows details of your loan (principal, interest, and escrow).

3) Both letters should include the loan number.

Still concerned? Call your lender to verify the authenticity of the letters.

Source: Chicago Tribune 6/19/11

STUDENT RENTAL POTENTIAL:
Capstone Quarters: Foreclosure
2 bedroom unit, bank owned.
Price: Under $80,000
Potential Gross Rents: $1,200 MO
NOI Potential: $8,934

FORECLOSURES:
There are currently two foreclosed luxury homes in the Trails Edge and Wills Trace Subdivision. Asking price $289,900 and $319,900.

FIXER:
An historic 1960's estate home in Champaign had a water pipe burst this winter. The home sits on a cul-de-sac with similar style homes. Repaired it could have a market value in the lower to mid $300,000's.

Eric's Notes

I was listening to the radio a few weeks ago and heard a quote from an economist stating that home values have dropped more nationwide than they had during the great depression. As we know, the country has seen a major drop in home values. However, with his comment I wondered how the housing increase compared in the 1920's with the increase in the early 2000's. I know in many areas specifically in California and Hawaii, properties were increasing in value 20%+ per year for nearly six years.

Champaign County is not in a bubble, but our property values have not seen the major decline that other areas of the country have seen. The News Gazette sourced Zillow showing that our area has dropped only 6% on average from the peak a few years ago.

When I work with Buyers relocating to this area I have to educate them on the stability of the housing here; and that 10-20% offers off of list (common in the Chicago area) just don't happen here. It does feel good to live in an area that bucks the trend a little.

The number of homes sold is another story. The tax credit had a big impact on the number of homes sold last year. From January to June 2010, home sales jumped 12% in Champaign-Urbana and 15% for our entire MLS area compared to sales in 2009. So far this year we have seen a 20% decrease in the number of sales in Champaign-Urbana from 2009. However, total 2011 sales for the area are up 2.4% from 2009. One factor for the increase in sales outside of Champaign-Urbana could be due to the continuation of 100% financing available with HUD rural development loans. Rural Development includes all locations in the area except Champaign, Urbana, Savoy, and Rantoul.

Hope you had a great 4th of July weekend. Please feel free to share this newsletter with friends and family.

Closed in
June, 2011

For Sale in
June, 2011

Champaign-Urbana:
129 Homes
24 Condos
1 Land

Mahomet:
19 Homes
2 Condos
0 Land

Champaign-Urbana:
827 Homes
269 Condos
166 Land

Mahomet:
108 Homes
15 Condos
78 Land