Peoria Area Real Estate Topics

Subject to the Sale of Your Home Contingency

ShellyK — Mon, 30 Aug 2010 15:57:42 +0000

So you found a house that you really love but your house hasn’t sold yet…what can you do? Consider writing an offer subject to you selling your home. The benefit of this would be that the seller would be locked into an agreed price. Let’s take a look at an important clause you will see in this amendment to a residential sales contract from the Peoria Association of Realtors.

In the event that the buyer does not enter into a fully executed contract that complies with this amendment on or before the contingency date, then this contract shall terminate and the ernest money shall be refunded unless buyer agrees to waive this subject contingency in writing on or before the contingency date, or buyer and seller mutually agree, in writing, to extend the contingency date. This clause is directly pulled from this amendment from the Peoria Area Association of Realtor’s form. Let me break it down. Entering into a fully executed contract would mean that the buyers home had an accepted offer and that it will close. A contingent offer would be a conditional offer that stipulates one or more requirements to be satisfied before the purchaser is obligated to buy. The contingency date is the date that the sellers give the buyers to sell their home. This date typically runs between 30 and 60 days. You will receive back the ernest money if this amendment expires. The seller may also still show their home during this time. If they receive another offer, not subject to sale, you will have a 24 – 48 hour time period to drop the contingency and buy their home without selling yours. When this amendment is set to expire the buyer and seller may choose to extend the time allowed.

What a mouth full, right?! This frequently used amendment assures that you won’t be left homeless. Go ahead and write an offer subject to the sale of your home and feel secure that you will not have to move out until you have found a new home that you and your family are happy with. Most people don’t have an endless flow of money to be buying a home without selling their current home first. If you find the home of your dreams, but you must sell your home first to make the move, fill out the subject to sale contingency amendment along with your offer. You will be given four decisions on the contract. Buyer’s residence is: currently listed for sale, will be listed in MLS within three days, will be listed with a realtor but not in MLS within three days, or will not be listed with a realtor. When you list your home, you should also list it subject to you closing on the home or your choice. The first two choices will obviously better your chances of getting an accepted offer and of selling your home quickly.
There are also draw backs to putting in an offer like this. Some sellers may not accept an offer subject to the sale of your home because it could scare off other buyers from writing offers. They also may not want to wait for you to sell your home. Also, if you were competing with another offer that did not contain a contingency the sellers would likely accept the other offer and you could loose the home. Obviously the best circumstance would be to have your house sold before putting an offer in on another home to present a more competitive offer but it doesn’t always work out that way. Good luck and happy house hunting!

While this article talks about a legal contract, it is not intended as legal console, which can be obtained from a law professional.

Realtor – An Extra Amidst Your Current Story

ShellyK — Fri, 20 Aug 2010 17:04:02 +0000

When I was young, we had a neighbor named Iona Twosaw. Yes, it was an unusual name. I’m guessing she was in her 70’s. Her husband had died years before. I grew up in Triumph, a small village, amidst the corn fields in central Illinois. Sharing a cup of sugar was common because there was only a general store, only about the size of a small home and it was only open during the week days. Growing up in a large family, we where always running out of something. It was my job to run across the street to retrieve it. Iona and I talked for maybe 15 minutes that day. In returning home, I mentioned to my mom that she seemed very lonely. Mom suggested that next time I take the time, sit down and talk with her for a while… and listen to her story. So the next time, I sat and I listened for almost 3 hours.
Since then, I have taken the time to watch for and listen to peoples story. I guess that’s one reason I love real estate. Each person has a story…and I happen to be an extra amidst their current story. Along the way, I found that the people that most people over look, usually have the best stories. You just have to take the time to sit down and open the book.

Flooded with Repossessed Homes

ShellyK — Tue, 22 Jun 2010 15:00:40 +0000

Okay, we all know that REO’s (repossessed homes) have been up over the past couple of years. So what happens if the market is flooded with REO’s and many of the REO’s don’t sell? The homes are often become damaged.

We think about damage from pests, theft and vandalism but one of the biggest issues come from water. Foreclosures happen when people can’t afford their bills any longer. At some point, this means that electricity is shut off. This means that furnaces, A/C, Dehumidifiers, and Sump pumps no longer work. In Illinois, a majority of basements get some water or moisture that seeps through the walls. Most keep water issues at bay with sump pumps.

Mold has been a major issue with foreclosures. Foreclosures have been taking up to 6 months to process before it even hits the market. Then the home can stay on the market for a long time. So we can see foreclosures that have been vacant for 12 to 16 months without electricity.

So who are the buyers for REO’s? Mostly investors who are willing to invest in the properties and are able to take the financial risks. Your average buyers are not able to buy them because most banks are not willing to give loans on homes that have mold or possible mold issues or the “Livability issues” that come from water issues.”

Agents have reported a drop in damaged REO sold in April. This may have influenced by an increase in short sales, which is up 5.5% in the past five months.

In early April, a government program began called Home Affordable Foreclosures Alternative (HAFA) which was designed to simplify the short sale process. HAFA has assisted in shortening the short sale process. Since the program was introduced, one of the greatest benefits is that less damage is happening to the homes, which will help the home market survive the “Flood” of REO homes.

Flood Plain

Tim — Tue, 06 Oct 2009 15:08:51 +0000

How do you know if your in a flood plain? Simple answer is… if animals are lining up to your door 2 by 2…you are more than likely in a flood plain. Going to the FEMA website can give you general mapping of your area. One of the best places I’ve found is your county zoning department. (Counties vary, so if your zoning department can’t help, they can usually tell you who would.) They can usually tell you if you are in a 500 year or 100 year flood plain. Most people think that if a house is on a hill or above the bluff that it is free from being in a flood plain. While usually true, there are still some areas in Peoria that are still require flood plain insurance.

A 500 year flood plain means that the river will flood up to this level at least once every 500 years. Same is true for the 100 year flood plain.

Can the flood plain map change? Yes, FEMA is remapping our area. Why? First, some maps are old and new technology provides better mapping. Second, rivers are living creatures that change as silt deposits grow and new paths are cut. Third, Hurricane Katrina taught FEMA a lesson. What does a Hurricane have to do with Peoria? They learned that just because there is a levy does not mean that it will hold water back. Now FEMA is requiring that all levies be certified before they say property is protected from a flood. Fourth, because of changing weather patterns, FEMA believes that we can see more flooding in the future.

I’ve been told that Peoria “Flood Plain” will be raised by upto 4 feet. FEMA is currently upgrading Woodford County’s Flood map which should be out soon. Areas previously not considered in a flood zone may actually need flood insurance.

Historical Peoria Lake Crests
(1) 28.80 ft on 05/23/1943
(2) 28.70 ft on 03/23/1979
(3) 28.40 ft on 03/07/1985
(4) 27.94 ft on 03/14/2009
(5) 27.40 ft on 12/09/1982

Thanks
Tim Johnson, REALTOR
Homeward Group, RE/MAX Unlimited
www.TimJohnsonRealtor.com

Stick built, SIPs, Modular and Manufactured homes

Tim — Tue, 22 Sep 2009 15:00:11 +0000

What’s the difference between a stick built, SIP, modular and manufactured homes?

Stick built homes are your traditional home, build piece by piece…stick (2×4) by stick from the foundation up to the chimney tip. The other three of these homes begin in the factory.

Manufactured homes are basically a trailer/mobile home. It has a steel undercarriage that stay attached to the home for the life of the home. Modular homes can have a skirt or traditional crawl space foundation. Manufactured homes are under Federal housing building guidelines. Manufactured homes are made to be more “economical” and unlike the other forms, manufactured homes generally loose value over time.

Modular homes are sections of homes that are pre-built in the factory, trucked in and removed from a truck and joined together by contractors at your building site. They are built like a stick build home but made in the factory in transportable MODULES. Modular homes follow your state and local building codes. One of the benefits to modular is that they are built in the factory so they are less likely to suffer damage from rain during the building process. Once at the site, homes are assembled quickly, usually in a day or two. Modular homes are usually built stronger to withstand wind and vibrations during moving.

SIPs are Structurally Integrated Panels. These are engineered panels that usually come with an exterior walls that is ready to side and an interior walls that is ready to drywall. Panels are pre-engineered with conduit, and wiring chases pre-installed, ready to wire. Walls are pre-built in sections in the factory and nailed, glued and/or bolted together at the location. SIP homes follow state and local building codes. SIPs go together quickly and the home can be enclosed in as little as a week. Though not as fast as a modular home, the speedy assembly can lesson the amount of time the interior of your home is exposed to the weather. Manufactures of these products claim better insulation value due to their engineering and design.

Thanks
Tim Johnson, REALTOR
Homeward Group, RE/MAX Unlimited
www.TimJohnsonRealtor.com

Eastern Bypass

Tim — Wed, 16 Sep 2009 16:04:23 +0000

Have you heard of Peoria’s Eastern Bypass? It has been talked about since before our current Rt 6 was built. It is a bypass that continues Rt 6 east, crossing the river, passing by/through Springbay, Metamora/Germantown Hills, Washington, East Peoria and Morton back to 74. The picture shows some suggested corridors that Illinois Department of Transportation is looking into.

Rt 6 possible corridors to Rt 74

I realize that it is not “GREEN” to build a new road. Roads have big environmental impacts on their surroundings. Trees cut, hills leveled and farmland lost and being replaced with concrete. Then “put trees in a Tree Museum” and then charge people to look at them. So my enthusiasm for the bypass is “curbed” a bit by what the new road would do to our land scape.

On the other side, one of the biggest benefits to the NE corner of the Greater Peoria Area would be a new bridge that would cross the river. Although vast improvements to the bridge have been made, congestion on the McCluggage bridge can be terrible. Traffic will continue to get worse as the NE portion of our area grows. A Northern bridge is needed. For those who live in the Germantown Hills area and work in Northern Peoria, at least 20 minutes will be shaved from their commute (Score 1 for Green.) The road would be an essential route if there was ever an issue where Peoria needed to be evacuated. It will provide jobs for the area along with growth of the cities to the north.

Depending on how you draw lines, The Greater Peoria Area is the second largest metropolitan area in Illinois (Reaching towards a half million people.) A successful city is a city that grows. The landscape will change and we can’t change that. Building roads has become more environmentally sensitive. A matter of fact, environment is part of the focus of the current studies that IDOT is doing right now.

I guess in writing this, I would like to see the bypass built. While IDOT should work towards an eco-friendly road. I think that it will help our area in growth, traffic flow and would reduce traffic that is now heavy on some of our back roads.

Thanks
Tim Johnson, REALTOR
Homeward Group, RE/MAX Unlimited
www.TimJohnsonRealtor.com

Always love to hear your thoughts.

More Info at www.EastenBypass.com