Real tips

 

 

Q. What do I need to know about credit scoring?

A. What is it?
Credit is a determining factor to whether you can obtain financing and at what cost for the purchase of a new home. Lenders consider credit scoring when determining the risk associated with any loan application, especially for homebuyers.

The first step in improving your credit rating is to know where you currently stand. Your credit records have been reduced to three-digit scores commonly known as a FICO, or Fair Isaac & Co, score. Assigned to you by each of the three major credit bureaus (TransUnion, Experian and Equifax), your score shows how likely you are to pay back a loan on time – the higher the score, the lower your presumed risk of default. By law, you may obtain one free report annually from each bureau online at www.AnnualCreditReport.com. By accessing your credit information one agency at a time, you can get a free credit report three times yearly.

How is it calculated?
The U.S. average credit score is 678 according to Experian’s National Score Index. Credit scores can range from 400 to 900 and are based on the length of your credit history, the mix of credit you already have and your number of recent credit applications. Factors include a person’s length of residence at a designated location, length and type of employment, income history, total amount of available credit, financial obligations, amount of credit used, and history of payments.

Can scores improve?
Once you obtain your FICO score you can work toward improving it. When it comes to something as important as your credit score it can take some time. Here are some tips to get you started:

  • Pay your bills on time. Your payment history, including late payments and foreclosures, can count for one-third of your credit score. Accounts more than 60 days past due will be indicated on your credit report. As the length of your on-time payments increase, so too will your score.

  • Check your credit report for errors. Removing errors, especially those negatively reflecting late payments or unpaid credit, is one of the easiest ways to improve a credit score. Look for expired negative records and file a dispute if necessary.

  • Reduce your balances. One-third of your FICO score depends on the total amount of balances you owe versus your total credit limit. Try to keep your balances less than 80 percent of your credit limit to maximize your score benefit. Start with those credit cards that are closest to their limits.

  • Keep older credit lines open. Having a long history of active accounts shows that you are a good credit risk. It also accounts for 10 percent of your credit score. Try to use your oldest cards regularly for small purchases and pay balances each month.

  • Use credit – but use it responsibly. This includes having credit cards and installment loans with timely payments. Accounting for 15 percent of your score, a balanced account including a mortgage payment can help homeowners boost their score.

  • Avoid new credit. Opening new credit will lower your average account age. In addition, the number of new applications counts for 10 percent of your score. Under the Fair Credit Reporting Act, you may limit “prescreened” offers by removing your name from nationwide lists. Apply in moderation and take on new credit only when you need it.

  • Check regularly for identity theft. Agencies may only provide your information to those with a valid need, such as a creditor or insurer. In addition, you must give consent for this information to be seen by an employer.

For most, credit is a way of life. Installment payments and credit cards can be useful financial tools if they are kept under control, but many let credit control them.

Consumers are advised to obtain copies of their credit reports to make sure all information is correct before applying for a loan. Incorrect information should be reported to the agency as soon as possible.

The Illinois Association of REALTORS® has many financing resources for consumers and potential homebuyers available. Providing specialized loan programs and credit resources are just a few of the ways Illinois REALTORS® are working to help Illinois residents achieve the dream of homeownership.    

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Credit Reports - Where Can I Get a Copy

 

You need to be sure to list your full name, spouse's name, addresses for past two to five years, phone number, Social Security number, date of birth and current employer. Requests for couples must be signed by both husband and wife. 

 

Q. How can I prepare my home for winter weather?

A. Illinois experiences five severe winter storms each year, on average, according to the Illinois Emergency Management Agency. Although the glistening landscape may look serene, the hazards associated with severe winter storms and extremely cold temperatures can wreak havoc on your home. Fortunately, many winter-related disasters can be avoided by taking simple precautions to ready your home for the season.

The best way to keep your family and home safe during bad weather is to plan ahead and prepare for a winter storm before it hits.

Make your home less vulnerable to the frigid temperatures by making sure it is properly insulated. Adding extra insulation to your walls and attic will help you conserve electricity and avoid problems such as frozen pipes or a collapsed roof. You can also caulk and weather-strip doors and windows to keep drafts from reducing the temperature inside your home.

Here are some quick tips:

  • Install storm windows or cover windows with plastic from the inside.

  • Leave all water taps open so they drip continuously in extremely cold conditions.

  • Keep safe emergency heating equipment on hand.

  • Set your thermostat for at least 65 degrees to avoid frozen pipes.

With the frequency of winter storms in Illinois annually, it is useful to maintain a disaster supply kit with communication, food and safety supplies in preparation for the worst. A prepared emergency kit can ease stress in the event that you are isolated in your home for a period of time.

A sample emergency kit could include:

  • A battery-powered weather radio
  • Canned/no-cook food (bread, crackers, dried fruit); non-electric can opener
  • Bottled drinking water
  • Flashlights and extra batteries
  • First-aid kit
  • Extra medications and special items for babies, the disabled or the elderly
  • Rock-salt to melt ice on walkways
  • Battery-powered lamps or lanterns

 

Q. What should I Know About Fire Safety at Home?

A. Since residential fires increase during the winter storm season, the winter months are a good time to check the batteries in your carbon-monoxide and smoke detectors.      

REALTORS® throughout Illinois are working to educate consumers about the carbon monoxide law that requires Illinois residences to be equipped with at least one carbon monoxide alarm within 15 feet of every room used for sleeping purposes. 

In order to ensure your home is properly heated this winter, have a professional inspect your furnace and fireplace annually. Furnace filters need to be cleaned or replaced regularly. If you are using an alternative heating source, keep it in a well-ventilated area and have a fire extinguisher on hand.

Each year, heating devices cause an average of 800 residential fires, 6 deaths, 73 injuries and more than $7.82 million in property damage in Illinois, according to the National Fire Incident Reporting System.

The Office of the State Fire Marshal (OSFM) advocates increased fire safety during the winter months. Make sure heating units carry the label of a recognized testing laboratory. Follow the manufacturers’ installation, operation and maintenance instructions on all home heating devices. Check heating equipment and have it professionally cleaned each season. Make sure all heating equipment meets local fire codes. Space heaters should be at least 36 inches (3 feet) away from anything combustible, and never leave them unattended.

Do not use portable LP (propane) gas heaters with self-contained fuel supplies in your home. Burn only the proper fuels in any heating device. Don’t burn green wood, trash or paper in wood stoves or fireplaces. Use only clear Grade A K-1 kerosene in kerosene heaters, not yellow kerosene, gasoline or camp stove fuel. Wires and fuses should be frequently checked to guard against electrical fires. Make sure your home wiring is sufficient to support portable heaters. Be careful not to overload electrical outlets and use extension cords sparingly to reduce the risk of an electrical fire. Make sure your smoke alarms are working. Test them regularly and replace the batteries as needed. Finally, plan and practice fire escape plans.

Source: Office of the Illinois State Fire Marshall

Q. Why Should I List My Home This Winter?

A. You’ve decided to sell your home, but are hesitant to place it on the market as the hectic holiday season quickly approaches. Don’t be. A common misconception is that listing a home in Illinois during the winter months is a bad idea. Homes showcased during the holidays provide a warm, inviting listing environment that welcomes sellers and buyers alike.

Most Illinois markets do not hibernate in the winter. With fewer homes on the market and buyers who are motivated to buy, the holiday months provide an ideal time to list and get ahead of the spring influx.

People who are shopping for a home during the winter months tend to be more motivated, serious buyers. Generally, these buyers are moving out of necessity so they are more likely to “buy now.” Showings can be much more valuable during the winter because you can cater to the motivated buyer and avoid those only casually looking for homes.

Many of these motivated buyers are employees relocating to a new area because of a job transfer. Since corporations often transfer employees towards the beginning of the calendar year, these buyers use the holidays to house hunt due to time constraints.

With holiday commitments, a limited supply of inventory and the necessity to relocate in the first quarter, many buyers are motivated to move quickly in negotiating their new home purchase. In order to sell your home in a timely manner, let your REALTOR® help you adjust your listing price to meet the seasonal market. A properly listed home will sell quicker and allow sellers to focus on friends and family.

Homes decorated for the holidays can showcase the inviting atmosphere a buyer needs to close a deal. When looking at listings, homebuyers try to imagine their own celebrations in the home. They are also looking for something that is move-in-ready so seasonal decorations should accent the home’s features and not distract potential buyers.

Q. What is the benefit of using a REALTOR with a designation?

A. Most property transactions are complex procedures, requiring the knowledge and expertise of a real estate professional. There may come a time when you need the assistance of a real estate professional who is specially trained in a specific aspect of the business. The National Association of REALTORS established REALTOR Designations, which are certification programs that identify passing REALTORS as experts in a certain field.

Through membership in NAR’s affiliated institutes, societies and councils, members devote themselves to continuous study of the most recent trends in their respective fields. The affiliates award specialty designations that recognize a member’s advanced education and experiences in a particular discipline. Courses offered through the affiliates keep members abreast of developments in their specialized fields and better able to address industry issues.

With each designation, a REALTOR increases his or her skills, productivity and knowledge, therefore providing buyers and sellers with a higher level of service.

While agents without designations are certainly capable of meeting a customer’s real estate needs (all have completed minimum training and most have completed additional education and training to stay on top of the industry); certain situations may call for a REALTOR with a designation.

Some professional designations include:

  • Accredited Buyer Representative (ABR)
  • Accredited Land Consultant (ALC),
  • Accredited Residential Manager (ARM)
  • Certified Commercial Investment Member (CCIM)
  • Certified International Property Specialist (CIPS)
  • Certified Property Manager (CPM)
  • Certified Real Estate Brokerage Manager (CRB)
  • Counselor of Real Estate (CRE)
  • Certified Residential Specialist (CRS)
  • General Accredited Appraiser (GAA)
  • Graduate, REALTOR Institute (GRI) 
  • Leadership Training Graduate (LTG)
  • Referral and Relocation Certification (RRC)
  • Residential Accredited Appraiser (RAA)
  • Society of Industrial and Office REALTORS (SIOR)


For more information on REALTOR designations or to search for a REALTOR with a specific designation, visit Designations at the National Association of REALTORS.

 

Q: What are some tips for selling my home this fall?

A. If you are looking to sell your home this year, don’t let the negative press surrounding the housing market discourage you. With favorable interest rates and a large buyer pool, this fall season can be a great time to put your house up for sale. Maximize this opportunity by pricing accordingly and making simple improvements to ensure your home has the appeal buyers are looking for.

It’s impossible to time any market. REALTORS® have worked with buyers and sellers in all types of markets and know what changes or improvements can generate the quickest sale at the best price.

A common mistake for sellers as the market slows is to set an unrealistic price for their home. A house that is priced appropriately for the market will be taken more seriously and will sell more quickly than one that's overpriced.

One of the easiest ways to properly price your home is to request a comparative market analysis (CMA), or a report telling you how much your house is worth comparable to other homes sold in the area in the past year. A local REALTOR® not only has experience with these types of reports, but access to the sales records in your area and can complete this analysis upon request.

Once you have a proper price for your home, you can spend some time preparing it for sale.

The changing colors of the fall season can make for a beautiful landscape for a listing. Since most buyers tend to be more inclined to request a showing if a home’s exterior is visually appealing, focus some of your time on improvements to your curb appeal and add interior touches. Even small adjustments can make or break a sale.

Here are some quick tips:

  • Keep the lawn tidy. Rake up excess leaves that may distract buyers.
  • Add some seasonal accents to your home. Hang a fall wreath on the door or place pumpkins on your front porch.
  • Consider baking a pie before your open house. Or burn a candle to fill the home with the scent of cinnamon or apples.
  • Open blinds and turn on the lights to brighten the home.
  • Emphasize your fireplace if you have one. Light a fire if the weather is cool to create a sense of warmth.
  • Trim any bushes or trees that might obstruct the view of your home.
  • Move pets to another location before showings.


The value of your home does not depend on the season. Set a competitive price, familiarize yourself with the current market and be patient. Your sale will follow.

 

Preparing Your Home for the Virtual Tour

With more buyers starting their home search on the Web, sellers in today’s market are relying on virtual tours for that oh-so-important first impression. If you are selling your home this spring, take some time to get it virtual tour and open house ready. Your extra spring cleaning will pay off with more interested buyers and a faster sale.

REALTORS® have experience in staging virtual tours and can offer you tips to attract buyers. By following a few simple guidelines, you can make the changes necessary to help your home shine above the rest.

Virtual tours not only show buyers a 360-degree view of the interior of a home but they allow them to narrow their home search conveniently from their personal computer. Since potential buyers will be sorting through hundreds of photos and virtual tours throughout this process, it is important to understand your home looks different through the lens of a camera than in person.

Just as you would prepare for an open house, start by removing the clutter. Move personal belongings out of sight or use this as an opportunity to donate or throw away items that you no longer use. The goal is to maximize the space of your home and depersonalize it enough to allow potential buyers to picture themselves living there.

Here are some tips to cut down the clutter:

  • Remove excess furniture to make rooms look larger.
  • Clear off the kitchen counter and hide everyday items such as kitchen utensils, toasters, hand soap and magnets on the fridge.
  • Store children’s toys, bicycles, gardening tools and other clutter out of sight.
  • Place toiletries and cleaning products in cabinets or closets. Most virtual tours will only photograph the major rooms in your home.
  • Take family photos off of walls and shelves while the home is being shown.
  • Recycle old magazines and newspapers that take up extra space throughout the home.

 

REALTORS® have photographed numerous virtual tours and can act as sort of a producer for the shoot. For example, think about the elements of your home that attracted you to it in the first place. Maybe it was the high ceilings or historic features? Work with your REALTOR® to ensure that the virtual tour really embodies the spirit of your home.

The next step is to give the home a good cleaning. Since cameras often capture more than the eye can see it is important to spend some time cleaning your home from top to bottom. Areas that are often overlooked during the cleaning process include windows and stainless steel appliances. Be sure to keep them streak free and clean to ensure the best photo.

Another cheap way to prepare your home for buyers is to brighten it up by replacing old or dim light bulbs. Consider using a higher wattage light bulb in rooms or areas that don’t get direct sunlight. You can also add a brightly-colored throw or vase if your furniture or flooring is dark to lighten up the space.     

Some other tips to consider for the virtual tour include:

  • Take your own digital photographs to see how each room looks on camera.
  • Get layout and style ideas from home and design magazines.
  • Don’t forget about ceilings and floors. Most virtual tours today show all angles.
  • Limit seasonal decorations.
  • If exterior photos are included, park vehicles elsewhere and make sure your lawn is freshly mowed and garbage cans are out of sight.

 

Q. What is Tax Deductible When Buying or Selling a Home?

A. Most closing costs are either tax deductible or should be capitalized and added to the purchase price of your home when you are ready to sell.

Deductible costs for buyers include:

  • Points (interest collected in advance by the lender),
  • Interest paid from the closing date to the first payment, and
  • Property taxes.

Deductible costs for sellers include:

  • Credits to the buyer for taxes already paid, and
  • Mortgage interest for the selling year.

Capitalized fees include:

  • Recording fees,
  • Title fees,
  • Attorney fees,
  • Notary fees, and
  • Termite inspection fees.

State and federal tax forms are available at the post office, banks, libraries, and local taxpayer assistance offices or check out the web sites below for forms, information and assistance. Don’t forget -- as a homeowner, your property taxes and the interest on your mortgage is deductible!

Federal Tax forms

  • http://www.irs.gov/formspubs/index.html;
  • 703/368-9694: 24-hour fax service (call from the phone connected to the fax machine);
  • 800/TAX-FORM (800/829-3676): to order forms by phone;
  • 800/829-4477: to listen to pre-recorded messages on 150 tax topics; or
  • write to: Central Area Distribution Center, P.O. Box 8903 Bloomington, IL 6172-8903.
  • Illinois State Tax forms:
  • www.revenue.state.il.us/taxforms;
  • 217/785-3400: Illinois Tax Fax, fax-on-demand service for forms and publications;
  • 800/356-6302: 24-hour Forms Order Line; or
  • write to: Illinois Department of Revenue, P.O. Box 19010, Springfield, IL 62794-9010.

 

Q. Is Your Home Located in a Flood-Prone Area?

A. Flooding is a concern for many Illinois homeowners. When buying a home, check with your REALTOR® to find out if the home you are considering is located in a flood plain. If it is, your lender may require flood insurance.

If you are not sure if your current home is located in a flood plain, contact your local Emergency Services and Disaster Agency or ESDA to find out if you live in a flood-prone area. If you do, you may want to purchase flood insurance and take steps to prepare your home.

Here are a few tips from the Illinois Emergency Management Agency on preparing your home and family for a flood:

  • Learn the local flood warning signals.
  • Purchase a weather radio with battery backup and tone alert.
  • Learn community flood evacuation routes and where to go in an emergency.
  • Assemble a disaster kit, including a battery-operated radio, flashlight, extra batteries, first-aid kit, sleeping supplies, warm clothing, food and extra drinking water.
  • Know how to shut off electricity, gas and water in your home.
  • Install check valves in sewer traps to prevent flood waters from backing up in sewer drains.
  • Make sure your insurance covers all personal belongings in cases of flooding.
  • Make a list of all of your belongings, along with photos and videotape if possible and keep it in a safe, dry place.
  • Keep important records and documents in a safe deposit box or off-site location.
  • Have a flood disaster plan and make sure all family members know where to meet in an emergency.
  • Have a plan ready to help any family members, friends or neighbors who may need assistance in a flood situation.

 

Q. I'm considering a move to Illinois. What do I need to know?

A. Relocation can be a challenge, especially for anyone moving to an area they know little about. Using a REALTOR can help make your relocation experience a positive one.

Even before you’ve started packing, a REALTOR at your future destination can find out what's available in your price range and make suggestions about housing options to fit your needs.

REALTORS can become certified relocation specialists, or those that specialize in the relocation process, guiding you through the process with helpful hints about everything including current real estate values, taxes, utility costs, municipal services and facilities. He or she can also alert you to local changes that may affect your decision.

There are also a variety of relocation Web sites designed to help you find Illinois-specific information from population and market statistics to education and school options.

REALTORS take additional steps to ensure professionalism and integrity. Strict enforcement of the REALTOR Code of Ethics by member peers means that all REALTORS conduct their day-to-day business with foremost concern for you, their client.

Find a REALTOR in the area of Illinois you're moving to.

Search for a property in Illinois.

Learn about the local market.

 

Tips for getting your home ready for market

It’s the height of the summer home selling season and low interest rates and tax incentives are driving more first-time homebuyers into the market. If you are looking to sell your home, there are things you can do to attract buyers and ensure the process of selling your home goes smoothly.

Boost your home’s curb appeal by keeping the lawn and shrubs trimmed and adding some flowers or other landscaping. Store clutter out of sight, give the front door a fresh coat of paint and power wash the home’s exterior. Once inside, take care of those maintenance issues – leaky faucets, squeaky hinges – that you’ve been putting off. Clear out the clutter, clean the carpets, get rid of pet odors and consider new paint in high traffic areas.

Another important step in getting your house ready for sale, is working with a REALTOR® to assist you in the process. Selling a home is a full-time job and REALTORS® have the experience and the market expertise to get it done.

There are a number of ways a REALTOR® can help with the selling process:

  • Provide up-to-date information on the market, financing terms and competing properties.
  • Establish the full market value of your home or property via a current market analysis.
  • Offer suggestions to prepare your house for sale and make it as appealing as possible to potential buyers.
  • List your home or property with the Multiple Listing Service (MLS).
  • Market your property aggressively through advertising and promotion, and a network of other real estate agents and the public, assuring the widest range of qualified buyers.
  • Handle all selling details, from listing your home to placing ads, handling inquiries and arranging appointments for showing.
  • Help negotiate the best deal with your best interest in mind.
  • Navigate all the paperwork and take care of the details to get an accepted offer to closing.

 

 

 

  

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