Realty Executives Midwest

Serving Darien, IL

Realty Executives Midwest

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Understanding Your Home’s Equity

(Published on - 10/12/2016 3:23:36 PM)

The dream of home ownership is about more than just a stable place to live, exempt from the whims and decisions of landlords. For many, home ownership is a piece of the wealth building picture, essential to a future retirement or financial independence. The idea is pretty basic: You purchase a home and pay it down while hoping the value of the home increases over time. Generally speaking, this is what happens over a long enough period of time. As you go, you build what’s called “equity.”

Equity is defined as “the market value of a homeowner's unencumbered interest in their real property—that is, the sum of the home's fair market value and the outstanding balance of all liens on the property.” If you were to sell your home and pay off the balance of the mortgage (and any other debts, such as home equity credit lines or liens), the cash you would have leftover is your equity. Your “equity position” changes over time due to a variety of factors.

As you’ve probably noted, the biggest variable in your home equity position is the home’s true market value. A variety of factors can influence your home’s value, including: Market demand for homes in your area, local amenities, schools, your home’s particular features, upgrades you’ve made, condition issues, and quite a bit more. So how can you tell your equity position?

First, you need to know what you owe on your home. This is as simple as checking your mortgage statement to see what your principle balance is on the loan. This number can differ slightly from your actual payoff amount due to closing dates, interest, and other issues determined during the sale, but generally speaking your principle balance is the number you need to know. If you have any other debt on the home, you need to add the value of this debt to the principle balance. This might include credit lines, liens, or second mortgages, for example.

Next, you need to know the value of your home. While there are sites such as Zillow and Trulia out there which will tell you what your home’s value is, these “automated valuation models” are generally not very accurate when it comes to your home’s value, as they exclude many crucial factors. Often they come in quite a bit higher. They can, however, give you an idea of general changing trends in your market over time.

Hiring an appraiser is one way to determine your home’s value from a more bank-like perspective. While an actual sale may be above the appraisal, this thorough, conservative option is a good way to go. The downside? You may have to pay up to $500 for the appraisal.

Of course, we are happy to help you get a handle on your home’s current value with a comparative market analysis (CMA). Just get in touch today.

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


Promises of a Great Agent

(Published on - 10/12/2016 3:22:26 PM)

There are thousands of licensed real estate agents, but of those licensed, how many are dedicated professionals? Many can make a good first impression, but to truly represent your needs, they’ll need to be able to make good on the promises only pros can make. One way to separate the pros from the merely qualified is to ask them if they’re willing to make some promises about how they conduct their business. Here’s what any great agent should be able to say from day one:

  1. “I promise to keep you in the loop and the lines of communication open.” Communication is fundamental to a working relationship, and a great agent knows that a buyer or seller may have questions and concerns which need addressing as soon as possible. You should never feel your agent is missing in action.

  2. “I promise you this is my full-time career.” Those with experience in real estate have graduated from the part-timer’s realm to the ability to support themselves with their income in real estate. People are pros when they go full-time.

  3. “I promise to be open to work with the people you want to work with.” A true professional is open to working with the lenders, insurance brokers, inspectors, and other companies you feel most comfortable with. Pros may recommend those who they know and trust, but a great agent will never confine you to their personal network of cronies. They’ll also let you know if someone you recommend may not meet their professional standards.

  4. “I promise to give you honest advice.” A professional real estate agent is engaged, concerned, and will tell give you the best counsel when it comes to serving your needs. Sometimes, this advice may not be easy to hear, especially when it comes to pricing, budget, or repairs. An agent who doesn’t give advice may well be checked-out and giving you less-than-ideal representation.

  5. “I promise a professional attitude across the board.” Honesty from your agent doesn’t mean abuse, neglect, name calling, or undue pressure to see things their way. In every interaction you should feel your agent walks, talks, and projects the image of a competent professional. Stress is part of real estate. The stakes are high and emotions are always just beneath the surface. A pro agent will have the fortitude and discipline to maintain a professional demeanor under fire. 

If agents you meet can make you these promises, are you sure they’re right for you? We can certainly make these promises and would welcome a conversation about your real estate goals this year. Should we talk soon?

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com


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