I just had the privilege of attending the media event for Raging Waves water park - Names best of the midwest by Midwest living Magazine. It opened a few years ago and now boasts 18 water slides, a wave pool, and a very courteous staff! It’s located in the far western suburb of Yorkville - a good hour plus from the city, but an easy trip from such transferee destinations as Naperville, Aurora and the Fox Valley neighoborhood.
Finding something special to do with kids, especially during a relocation, is always important. This is an easy way for the kids to have a fantastic day while the parents relax in a friendly, safe, fantastic environment. Believe me, I’ve been to a lot of waterparks, and this one is tops.
The top endorsement came from my seven year old - “It’s really cool, thanks Dad.”
“Bairdwarner.com is an excellent site with extremely high usability” said one of the judges. “It is simple, direct, engaging and packed with useful information that is conveyed using succinct, web-friendly writing. Site is focused on what clients need.”
Jim Schiefelbein, VP/Chief Marketing Officer, accepted the award on behalf of the company and reminded how revolutionizing the real estate marketing has been in the past 15 years.
A recent report by TransUnion, the credit-scoring giant, has some stunning information that really helps crystalize the way many people look at their homes today. According to TU, since the recession really got going, the old concept of “mortgage payment first, credit and other payments second” has gone tipsy turvey - People are paying the credit card payment and THEN, if there is anything left over, they are paying their mortgage. A “hierarchy reversal” as they call it.
Does that mean that people no longer care if they lose their home; that their concern is more about keeping available credit open; or that they don’t see logic paying down an asset that is worth less than the balance? Whatever the reason, TU predicts that this is a temporary change, and the world will go back to normal as we come out of this economic climate. For the sake of Chicago real estate, we hope that happens soon!
….You’re stupid or broke! Strong words, but thank you Marc Roth for exposing the emporer’s new clothes on this one! Your humble author definitely has plans to buy at least some more investment property in 2010 and take advantage of these all time lows and historically low rates (although I’ve got a nagging vacancy in Chicago’s Tri Taylor neighborhood, if anyone is looking for a rental bargain!).
But back to Mr. Roth’s succinct appraisal - “Maybe you’re a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don’t act soon, you will regret it. Here’s why: historically low interest rates.” He goes on to address a number of other issues that can apply to buying real estate in Chicago or just about anywhere else in the country.
Yes the nay-sayers will remind you that it’s very hard to get the best mortgage rate without fantastic credit, or that nasty little extras like property taxes have not gone down, or that 10.3 of us seem to unemployed - but that’s not “big picture” thinking. If you have the means, this is an opportunity that won’t come again for many years. So for those on the sidelines - Carpe Diem!
Thinking of a move to Chicago? You’ll love this informative video about the great things to do in Chi-Town! Well…..Maybe your parents saw it at the theatre:
Here’s some fantastic insight on some of the changes coming to RESPA, by my Rubloff colleague Ross Nemzin. Ross can be reached at rnemzin@rubloff.com
Another of the new federal requirements that will impact every mortgage operation in the country is the Real Estate Settlement Procedures Act (RESPA). RESPA is an HUD consumer protection law that was created in 1974 to help consumers become better purchasers of settlement services and to decrease the puffed up costs of real estate transactions due to kickbacks between lenders, realtors, construction companies, and title insurance companies. It also requires that lenders provide borrowers with a good faith estimate (GFE) for all the costs of a loan. RESPA reform has been going on since 1992 and at last a final rule for the act was recently created with a compliance date of January 1, 2010.
The final rule promotes RESPA’s functions by requiring more timely and useful disclosures about mortgage settlement costs and protecting borrowers from paying inflated settlement costs. According to the Federal Register, RESPA will do this by - Improving and standardizing the GFE form; guaranteeing that the first page of the GFE is understandable; allowing borrowers to ID a particular loan and make comparisons easier; providing more accurate estimates of settlement costs on the GFE; helping to more accurately compare the GFE with the HUD-1.
It is important to note that the costs outlined on the GFE are only estimates. The HUD-1 Settlement Statement is a list of the actual fees charged to the borrower and can be reviewed by the borrower one day before settlement. The borrower should request to see the HUD-1 and should question any charge that is not understood.
After much consideration, the proposed changes to the definition of “required use” have been withdrawn from the final rule of RESPA. These changes would have eliminated incentives or discounts to borrowers that use affiliated settlement service providers.
It seems as though RESPA’s final rule is very beneficial to the homebuyer, yet only time will tell. However, anyone relocating into or out of Chicago should certainly take note….
Our Rubloff intern, Ross Nemzin (rnemzin@rubloff.com) recently sat down with the President of Relocation Management Resources (“RMR”), Bob Carbonell, to learn more about his company. Simply put, RMR acts as a custom management outsource for household goods moving services. These services are utilized by several categories of client:
• Homeowners
• “Lump Sum” corporate transferees
• Affinity program members
• Real Estate Company partners
• Full service relocation management companies
• Corporations
Whether the client is a corporate transferee or an individual wanting a luxury real estate focus toward their move , RMR can provide the expertise needed to make a seamless transition from one home to another. RMR has a network of many of the finest specialized domestic and international moving agents to ensure their clients receive the highest quality moving services.
Several key points were revealed in the discussion that differentiate RMR’s moving service from that received when working directly with movers and other management groups:
• RMR completely separates the move management from the mover. The company inserts itself between the client and the moving company as an expert management resource and advocate – taking over all forms of communication and move orchestration—neither the individual moving or, when applicable, the employer, realtor or management company ever speaks to the moving company.
• For individual transferees, RMR provides custom service constraints and performance parameters such as those experienced by a corporate executive under a company umbrella . On their own, individuals do not have as much clout as corporations do to influence the system in order to receive the most cost effective moving plan with the highest level of quality. If they use RMR, however, they now have the built-in luxury of a corporate-level managed service.
• The sole focus of RMR’s business is to satisfy the client’s needs at the best possible cost. RMR presents its clients with multiple moving plans in an easily understood manner which allows the client to clearly see all of their options.
• A written documentation of all steps of the move is kept and then processed through a very complex audit to ensure that the client is billed correctly.
• RMR assures that clients will receive top quality moving, accurate billing, and fantastic customer service at a market competitive price.
This unique service that RMR provides is something that no other move management company in the country does and distinguishes RMR from its competition. Whether your need is Chicago Relocation or worldwide relocation, for more information, visit RMR.
As told by our intern Ross Nemzin - The Ritz-Carlton Residences recently began its ascent to the pinnacle of Chicago’s luxury homes with its ceremonial ground breaking at 664 N. Michigan Avenue.
While other developments have struggled in a weak economy, demand and interest in The Ritz-Carlton Residences have been tremendous. With construction financing ready to go, over 40% of homes sold and just 49 units remaining, the creation of Chicago’s newest standard in luxury homes is in high gear. The Residences, designed by French architect Lucien Lagrange, contain 88 units in an elegant 40-story building. The Parisian-style tower will incorporate the 1930s modern art look with an exterior featuring flying buttresses, carved panels, and a crown of lighted art glass.
The Residences’ interior, gracefully designed by Darcy Bonner and Associates, features “The Landmark Club”, a private club on the 10th floor. With its beautiful architectural features and extravagant amenities, the club will redefine standards of luxury and service. The club, staffed and managed by The Ritz-Carlton Hotel Company, will feature a grand salon, dining room, spa, billiards room, wine cellar, screening room, and fitness center.
My colleague here at Rubloff, Ross Nemzin, has shared his thoughts on the upcoming HVCC - One of four major changes coming to the relocation financing world in the next few months. Ross, who is earning a degree in real estate while working at Rubloff, can be reached at rnemzin@rubloff.com
As described in an earlier post, a number of new federal requirements in the housing industry will be enacted within the next few months. One of those requirements, the Home Valuation Code of Conduct, has already been formally implemented. In a broad sense, the HVCC is designed to ensure and improve the independence and accuracy of appraisals and provide increased protections for homebuyers, investors, and the housing market. The HVCC has nine sections that each deal with a specific part of the new act.
The first section of the HVCC establishes controls and safeguards to ensure appraiser independence. The main point is that all appraisers must be licensed or certified by the state in which the property to be appraised is located. The other major aspect of section one is that nobody shall influence any part of the appraisal process in any way. Section two requires lenders to provide customers with a copy of their appraisal or property valuation report no less than three days prior to the closing of the loan. The customer does have the right to waive this requirement.
The third section of the HVCC involves appraiser engagement and selection. Specifically, the lender must select, retain, and provide for payment of all compensation to the appraiser. The third section forbids any influence in the selection of an appraiser for a particular assignment, including any communication that may have an impact on valuation. Finally, any employee in charge of selecting appraisers must be trained, qualified, and completely independent of the loan production staff and process.
The next two sections focus further on the independence of appraisers. The fourth section prevents improper influences on appraisers by describing specific instances in which an appraisal report cannot be used due to its impartiality. Section five creates the Independent Valuation Protection Institute (as approved by the parties) which compels the lender to provide information to appraisers and borrowers regarding the availability of the Institute’s services, including a telephone hotline and email address and the publication and promotion of the best practices for independent valuation.
The sixth section requires lenders to test the quality of appraisals and provide Fannie Mae or Freddie Mac with any irregular results. In section seven, a lender is required to alert the applicable State office to any known violation of laws or unethical conduct by an appraiser or appraisal company. Section eight forces a lender to certify that the appraisal report was acquired in compliance with the HVCC and lays out punishments for violations. The ninth and final section deals with the scope of the HVCC and its affect on property valuation prior to its enactment.
So, what does all this legal jargon actually mean? Well, first of all, Freddie and Fannie will only purchase loans that were appraised in compliance with the new Code. In addition, many lenders are up in arms about the independent selection of appraisers, citing the fact that the HVCC has resulted in appraisers performing appraisals in areas they are not familiar with, the forced use of appraisers with less experience, and much lower appraisals. Appraisers unfamiliar with an area are more likely to undervalue a home, which can destroy a deal if a seller is unwilling to list the home for that low of a price. Further, there is an increased cost for the appraisal because the appraisal fee is now split between the appraiser and the appraisal management company. The HVCC has greatly altered many aspects of a real estate transaction, often with overwhelming effects.
One of the best sources of hard data on the overall economy for Chicago and Chicago Real Estate in the government site http://www.bls.gov/eag/ and the specific Illinois information found at http://www.bls.gov/eag/eag.il.htm .
A quick perusal will give a snapshot of the last 5 months (with archived data available) of economic data, including Labor Force Data (including the key unemployment rate, which should be of great concern if you’re buying real estate in Chicago or selling real estate in Chicago . The January statewide unemployment rate, by the way, was 7.9%, up from 6.7% in September. Layoff rates are noted as well.
Construction starts, manufacturing info, trade and transportation information, plus statistics on finance and professional and business services are also available. Just think, it could be worse, you could own luxury real estate in Scotland (see www.guidemehome2chicagoluxury for more info)!
Whenever you consider relocation or selling in Chicago, take all the facts into account so you can make an informed decision!
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photographic images courtesy of the Chicago History Museum and the Evanston History Center. Images may have been altered in cropping, tinting or detailing.
