Chitownproperty

Sale ain’t over till it’s closed — chicagotribune.com

You already knew that technically, your house wasn’t sold until you left the closing table and handed over the keys. But if you did sell your home in the past few years, you probably closed the deal mentally as soon as the buyer signed the contract.

Not so these days, as this article in the Tribune points out. The credit crisis means that buyers can have their formal mortgage application turned down at the last minute, even if they had already been pre-approved for that amount. Risks for the lender can shift based on the borrower’s income, credit, and the property’s location, and now that lenders are meticulously analyzing every mortgage, any one of those could unexpectedly derail a deal. Potential buyers would be wise to check with their mortgage broker or bank frequently throughout the purchasing process, and take action to shore up any weaknesses in their resume, like putting down a larger down payment.

It’s still buyer vs. seller — chicagotribune.com

The Trib’s feature real estate story this week points out something that’s painfully obvious to those of you trying to sell your homes right now: the buyers are in control, and not just by having a large selection. Buyers know that some sellers are desperate to move, and are demanding everything from simple inspection item repairs to furniture and new appliances with their offers.

Of course, this can get out of hand, and the example in the article of one buyer demanding that a flat screen TV and surround sound system be thrown in with the home is extreme. But as a seller, you can avoid some irritating requests by taking care of all those nagging repairs you’ve been living with at home–the bathroom door that doesn’t quite shut, the bathtub that needs more caulking, the furnace that runs a little hot, or the water heater that runs a little cold. These can be surprisingly simple to fix up front, but can become a major point of contention during a heated negotiation process.

Most housing markets are less overvalued – CNN/Money

Analysts from National City Corp bank say that the home valuations–the difference between what a home should cost and its actual price–are at their lowest in four years. That isn’t to say that home prices have stopped declining, but now, even in a market like Chicago that was never severely overvalued, is as good a time to buy as any.