property values

The Chicagoland Quarterly Housing Report, Buffalo Grove, Libertyville, Long Grove, Palatine, and Vernon Hills Market Update

We are fortunate to have a company that sends us quarterly PDF Appraisal Reports on the Chicago and Surrounding Suburbs comparing the current quarter sales statics this year to last year at the same time. 

This report is very comprehensive and will give you the same information that the lenders are using in making new loans today.  Please do take some time and look this over and call me if you have any questions.

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property values

Home Values in Lake and Cook County

I had an interesting conversation with a friend of mine who is a licensed appraiser for 24 years this past weekend regarding the appraisal process today, and how they are determining value when there usually are no  property comparables to justify our sales.  I could go into the long process of what she said however I would probably need to go school again. 

The long and short of all of this is that we are back to 2004 pricing and that is something that we all need to deal with.  Buyers are walking away from homes that they would like to buy as they are just not appraising and the sellers are not accepting our new reality. Is it a wonder that we are all confused today?  

Maybe if the lenders were more upfront as to how this is all working then the general public would move forward and the real estate market would start to stabilize.  Just think how helpful that would be to our economy.

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property values

Banking and Appraisals in My Opinion

I typically do not express my opinion on line however most of you are really not aware as to what is now going on in the banking industry and we need to speak out.  It is now a mandatory rule that  bank appraisers  can not  contact the listing  agent for information regarding the home and the features, or the sold properties in the area  so they are doing appraisals by just looking at the sheet from the MLS and tax records.

The worst of it is that due to the fact that there are so many foreclosures and shorts sales which is about 35% of our market today, those properties are now being used as home sale comparables in the appraisal process. 

The banks do not care that these homes can sometimes be sold at more then 40% under the fair market value so it now will reduce the value of all of our homes today.  I have already lost 2 transactions as the homes did not appraise out and one with a very well known Realtor in Libertyville. 

The buyers will not pay more then the appraised value and the appraisers came in on both of them $50,000.00 under the selling price. So the banks in this country gave the money away to non qualified buyers for years as they all got rich and richer and now today they are destroying what is left of a bad real estate market.  We need to do something and we can. 

We can all write letters to our government senators and congressmen with our thoughts.  I put my thoughts last night on the Nightline blog and will continue to do so on every blog that there is out there.  If we all just do something maybe we can make a difference and stop this nightmare.

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