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The market has been a little off recently with the amount of foreclosures and pre-foreclosure short sales taking over the real estate market in Plainfield and Naperville, but not all properties in both Plainfield and Naperville are being sold a deep discounts.  Buyers always ask me how much they should offer if they want to have their offer accepted by the seller.  Sellers likewise ask how much they can expect to be offered for their Plainfield and Naperville properties.

On average over the last 6 months, sellers in Plainfield got about 96% of their asking price for both town homes and single family properties, with the exception of single family homes with 5 or more bedrooms, which got about 94% of their asking price. One reason that the sellers with 5+ bedroom houses may have gotten less than asking price is because it was over priced to begin with.  Bedrooms typically add between $7-10K to the value of a house, but not often more than that.  Another reason is that there is not as great of a market for homes with more than 4 bedrooms, lessening the interest that buyers would have in a home that may be more than what they need.

In Naperville, it's a similar story but the numbers are down just a bit. For all single family homes available in Naperville that closed in the first 6 months of 2008, the single family home sellers are are closing at about 95% of their asking price with the exception again being the 5+bedroom market.  Those homes are fetching about 94% on average.  Attached single family homes are fairing a little better with a sale to list price ratio of about 96%.  The exception is one 4 bedroom attached single family home that closed at 98% of the asking price, which strangely enough, is converse to the situation with 5+ single family homes in Naperville.

Plainfield Market Statistics for the last 6 months:

Naperville Market Statistics for the last 6 months:

A few things to remember about how much you should offer on a properties in Plainfield and Naperville are:

• Is the house you are interested in over-priced?  Any good Realtor would, and should, pull the neighborhood comps and do a market analysis on the property you are interested in BEFORE you make an offer.  Find the true market value before you start negotiating and then go from there.
  

• Owners of exceptionally well kept homes in Plainfield or Naperville that are already priced well may be less willing to negotiate.  They know they will sell their home to the next person if you make an offer that is too low.  Often these sellers are often willing to wait for a higher priced offer.
  

• Ask about their motivation.  Do they need to move? Are they just testing the market? Have they been transferred?  Experiencing a life change due to birth, death, marriage, divorce or illness? 
  

• Does the property need repairs or have deferred maintenance that needs to be addressed?  If so, how much do you think it will cost to repair?  Is the house priced accordingly?

• Does the property have some kind of functional obsolesce that will make it difficult for you to sell in the future?  Power-lines or freight train tracks cutting through the back yard?

• How much have similar properties sold for in the neighborhood?

• And finally....How much do you really want that house?!
  

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I don't even know where to start with this one simply because for my Plainfield neighborhood it's not just one or two homes in foreclosure, there is at least 10 that are bank owned already with at least another 10 that are well on their way.

There is no doubt that foreclosures will bring down the property values in Plainfield and Naperville neighborhoods, but what about the eye sores they become within the neighborhood?

The weeds are covering the walk to the front door, and the lawn hasn't been cut all summer.  There is significant amounts of debris from long gone Spring storms that swept through the area...

Contacting a Homeowners Association or the village about a problem with unkempt properties in your Naperville or Plainfield subdivision may seem like the answer, but until the bank actually regains possession of the property, there isn't much that can be done about the disheveled condition of the exterior until the property is sold either back to the bank or to new owners.
 

Are Plainfield and Naperville foreclosures starting to affect your neighborhood?

As a responsible person, the whole idea of not paying the mortgage seems crazy to you.  Perhaps you have faced tough times too, BUT... you didn't get through it by using our credit cards, or the equity in our home. You're not only angry that your neighbors left you with a vacant eyesore in the lot next to yours, they made it your business by trashing the property and bringing down the value of your home.

There is a difference between luxury and necessity.  Cable is a luxury. Cell phones are luxury. Internet is a luxury. Air conditioning is a luxury. Eating out is a luxury. New clothes are a luxury. New cars are a luxury. Entertainment is a luxury... food, water, and shelter are necessity.

For people who have fallen on hard times, you would expect to see some refraining going on, but what happens when homeowners in foreclosure haven't scaled back and haven't done without to make ends meet?

For those sellers in default, trying to sell their house through a short sale before the auction will probably cause the bank to not very open to negotiating the sellers debt.  Part of the process of a short sale includes close and careful scrutiny of a seller in default's bank statements.  They have to prove they haven't been able to afford their payments due to a hardship from the time they stopped making their payments.  If there is an $2,000 purchase at Best Buy for a new flat screen t.v. on their bank statement, you can probably bet that the bank won't be letting them off the hook too easily.

Buy many of the homeowners in default aren't even trying to work with the banks.  These are the homes with the unkempt lawns, broken windows, and run down exteriors. These are the abandoned homes that were never listed for sale.  Does this make you angry? 

Here is why everyone isn't willing to swallow the sub prime excuse anymore:

Adults who have the privledge of due diligence, have the opportunity in America to be EDUCATED in the home buying process.

I'm a Realtor, and yes we've taken our lumps for the situation too.  The thing is though, my fiducuary responsibility as a Realtor is to be the procuring cause of the sale, not determine and decide what my customer can afford to pay each month.  I think that many buyers even today would benefit from pre-purchase counseling or homebuying seminars.

Why do Plainfield and Naperville families lose their homes to foreclosure?

Death, divorce, disease, devastation, and debt. 

I have worked with some unfortunate sellers who have faced hard times, and on the flip side of that I have worked with some sellers who by their own admission made very bad financial decisions.

There are sellers out there who have done the right thing by trying to sell the house to avoid a foreclosure... but there are many more homeowners in foreclosure who leave behind a damaged property, sticking it to the lender, and in the end... ultimately you. 

Everyone pays the price for the surge in foreclosures one way or another, whether it's through depreciation on the value of your home, or through a reduction in the amount of money banks are willing to lend customers with good credit.  Both of these situations affect the economy in big ways.

Is there an end in sight to the amount of foreclosures in Plainfield and Naperville, IL?

The only end to the current state of the real estate economy that I see is a call for more proactive measures from homeowners in default who need to try to sell their homes before they become bank owned properties.

Instead of walking away from the house, I would suggest to anyone facing foreclosure to put any money that they can save into a bank account to cover the difference between what the house can be sold for quickly against depreciation, and what the bank will accept as a short sale. It could also be use it to build up a cash reserve that can will cover your first months rent and security deposit when the time comes to move and get back on your feet.

Even after the auction, the lender can file a judgement against you for the difference between what the house sells for at the auction and what you currently owe your lender.  You are always better off trying to sell your house instead of walking away. If you are facing foreclosure and need an agent that is experienced with performing short sales, call me at 630-673-6233.

If you are looking to find a property below market value or want to invest in the Plainfield or Naperville area, I can help you find a house that meets your needs.

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Not long ago the road sides along Plainfield and Naperville streets were littered with 'WE BUY HOMES' bandit signs, but today the only investors still surviving in the current real estate market are purchasing homes at deep discounts through short sales based on their current market values. (not on what the homeowner owes), and then holding them as rental property until the market improves.

This has opened up the market to a whole new set of buyers who were previously shut out of the market due to the real estate feeding frenzy that ended a little over a year ago by these investors. 

Three simple reasons that investors have stopped buying up all of the good real estate opportunities in Plainfield and Naperville are:

• Funding for these types of loans have dried up with the demise of the sub-prime lending industry.
  
• There is too much competition in the inventory of homes to sucessfully sell the investment property quickly to avoid holding costs.
  
• They can no longer bank on the anticipated future appreciation on their investment for equity.

While the inventory of Plainfield and Naperville homes being sold for less than what is owed is driving the price of homes that are available for sale, many buyers who have been lucky enough to sell their home, or 1st time home-buyers that don't have a home to sell, are cashing in on the opportunity to purchase pre-foreclosure and foreclosed homes in Plainfield and Naperville.

In the past, bank owned or foreclosed homes were traditionally abandoned and trashed on the interior, but today the face of foreclosure has changed. Your neighbors, family, and friends are among those who have either lost or are about to lose their home, and that is not the case. These homeowners are simply walking away. Homes in Plainfield were among one of the hardest hit communities in Will County to be affected by foreclosure, but the amazing thing is... even after everything that has happened in Real Estate over the last 3 years, Plainfield home prices are still 2% above their 2005 values on average.

Because the volume of foreclosed homes in Plainfield and Naperville is on the rise, buyers now have a better opportunity to negotiate directly with the bank on their purchase. There are several reasons that negotiating with the bank in the purchase of a Plainfield or Naperville home will end in the buyers favor in most cases:

• The bank is not emotionally attached to the property.
  
• Their price is based on statistical data including recent home sales and appraisal.
• Many of these loans are federally insured by the US government, (FHA loans) for 82% of the loan to value ratio, meaning they can be sold for a bank net of 82% of their value.
• Banks understand the value in liquidating a non-performing asset for their investors.
• Because Illinois is a judicial state, the foreclosure process is 4-10 months long on average. The bank is often eager to settle for less before the date of the auction to avoid additional court costs and property management fees. Also, the home is less likely to be vandalized by the homeowners if they have not actually lost their home at the auction.

1st time home buyers, and buyers that don't have a home to sell, have a unique opportunity for buying a Plainfield or Naperville home that is in good condition and under market value. The hesitation for buyers in this market comes from analysts that say the worst isn't over yet. The best way to safeguard your investment is to buy a home under market value through a short sale, preforeclosure or as an REO, right from the bank.

I predict the Plainfield and Naperville real estate market will begin to improve after this November's presidential election. The current price of gas and the worry of inflation have many potential home-buyers climbing back over the fence. Consumer confidence will begin to improve when some of the uncertainty of our governmental and economic conditions have been put to rest.

I have 4 years of experience in dealing with short sales, bank owned properties and pre-foreclosures. I have successfully negotiated short sales for homeowners in foreclosure, and I have been performing Broker Price Opinions for lenders on property in default for the last 12 months.

I know how to evaluate property in Plainfield and Naperville because I live and work in the community. I can help you find the best home at the best price. The best part is it's not just what I'm good at... it's what I love to do!

If you are buyer looking to purchase or invest in Plainfield or Naperville real estate, I can help you find the best value for your money, and put you in a positiion of equity to protect your purchase from futher market depreciation.

If you are a homeowner facing foreclosure in either Plainfield or Naperville, IL, I can attempt to negotiate a short sale with your lender to avoid a foreclosure. Due to the high amount of inquiries I receive about short sales, I limit the number of homeowners in foreclosure that I can sucessfully assist at one time.

Call me at 630-673-6233 to get started right away. I look forward to talking to you.

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I'm sure there are lots of reasons why Plainfield and Naperville homeowners find it more appealing to try to sell their homes for sale by owner, and I'm sure the 4-7% commission that a Plainfield or Naperville Realtor would charge them for their service tops the list... but did you know that according to NAR, homes for sale by owner sell for 32% less than homes listed with a Realtor, on average?

Wow, even if you figure in a 5% commission from a Plainfield Realtor, homeowners are still losing about 27% of their homes equity anually by chosing to eliminate the professional services of an Illinois Realtor. Yikes, 27% is a lot of money on a $250,000 house! 

The median FSBO selling price in 2006 was $187,200, compared with $247,000 for agent-assisted transactions and in a faster amount of time.  That pretty much makes hiring a Realtor look like a pretty sweet bargain!

Here are some of the reasons For Sale By Owner homes sell for less money, in a longer amount of time:

• Sellers do not know the true value of their home.
  
• Limited exposure to Internet and tech-savvy buyers.
• Inexperience with negotiating the terms of a contract.
• Limited access to the price of competing home values.
• Limited access to closed home price comparables.
• Most buyers use a Realtor represent them when purchasing real estate and FSBO's are often over-looked because the limited amount of information available about the homes statistics.

If you are on the fence about whether or not to hire a Realtor to represent you in the sale of your home, interview a few Plainfield or Naperville real estate agents and then decide if you have the time, effort, and energy to provide the same level of service for yourself than your Plainfield or Naperville Realtor will provide for you!

If you are a Plainfield or Naperville homeowner thinking about "For Sale By Owner" or have a property you are currently marketing on your own, it would be my pleasure to answer any questions you may have about the process.  Just give me a call at 630-673-6233.

Read also:

What Kind of Improvements Do I Need To Make My Plainfield or Naperville Home Sell?
Plainfield Home Values and How They Comparea Against the Housing Bubble
Testing the Market With A High Asking Price

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As you may have noticed I recently transferred real estate offices.  I joined RE/Max Professionals South in Plainfield, IL this week, and I know that it was not only the best choice for me, but also for my clients.

RE/Max is the industry leader in real estate and they also hold the market share in the Plainfield, Naperville and Shorewood, IL.  I chose RE/Max because of the brand recognition, and technology and support that they offer to their agents.  I was not only impressed with the office, but also by the brokers and staff the operate the office.  Rich Conte, Lisa Mulcahy, and Dan Persico welcomed me with open arms.  They were not only professional, but fun to be around.  I believe that energy is contagious and I wanted to be part of this from the second I set foot in the office on Renwick Rd.

There are 3 offices affiliated with our brokers: RE/Max Professionals Select in Naperville, IL, RE/Max Professionals South in Plainfield, IL, and RE/Max Pinnacle in Shorewood, IL. 

RE/Max not only offers the exposure that my clients expect, they also offers the professional service my clients deserve.  I have met many agents in the field over the years and I have always had a great experiences with all of the RE/Max agents in Plainfield that I have worked with in past transactions.

This is a smart move for me, and I know that my clients will continue to benefit from my relationship with RE/Max Professionals South for years to come! 

Now you can find me at:

RE/Max Professionals South
24014 W. Renwick Rd.
Plainfield, IL 60544
815-609-0100 Office
630-673-6233 Direct