StartingPoint Realty

Awesome Customers - Bob and Gina

2011-12-27T12:41:00.000-08:00

"Tammy did a great job researching the area we were interested in, and traveled to see us often, even though we weren't in her normal selling area. We couldn't be happier with our first home buying experience and the help Tammy and StartingPoint Realty provided us with to make a comfortable home purchase."

"To acquire knowlege, one must study; but to acquire wisdom, one must observe." - Marilyn vos Savant

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Credit

2011-12-20T12:09:00.000-08:00

Trying to get your credit score up? Click here to view a good article on what you do with credit cards.

"What you do speaks so loud that I cannot hear what you say." - Ralph Waldo EmersonRyan Gable

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Condos - 22.1 Disclosure and Financials

2011-12-06T13:07:00.000-08:00

We haven’t touch upon this subject in quite a while. When buying a condo, we have a rule (the 50/50 rule) that will help you understand the importance of knowing the impact of a potential condo association. You must understand that it’s a 50/50 purchase: 50% is the condo itself, 50% is the condo association.

From a technical standpoint, this formula is wrong. You own 100% between your walls, and a proportional share of the common elements (roof, hallways, etc.). But from a real life aspect, we believe that you should remember the 50/50 rule when looking at purchasing a condo.

When you have a condo under contract, your attorney should ask the seller’s attorney for all the financials of the building: profit/loss, budget, meeting minutes, balance sheet, 22.1 disclosure.

You will then have five business days to negotiate any issues with the seller. So it’s VITAL that you tell your attorney and your real estate agent that you need to see these documents when they are received by your attorney. If you do not try to negotiate within these five business days after these documents are received, you can not cancel your contract due to any issues that you find within these documents.

It’s an oldie, but here’s a segment we did on NBC News explaining the importance of understanding this concept, click here to view.

Please click here for a sample disclosure.

"As one grows older, one becomes wiser and more foolish." - Francois de La Rochefoucauld

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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REALTOR.com

2011-11-29T12:31:00.000-08:00

We’ve been testing a number of sites as it relates to their home searching functionality, and we were actually pleasantly surprised with REALTOR.com’s functionality: www.REALTOR.com

The phone app is good, the iPad app is REALLY good.

"A goal without a plan is just a wish." - Antoine de Saint-Exuperv

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Walkability Score

2011-11-22T10:49:00.000-08:00

Many of you have seen this, some have not. For those looking in areas that they are not all too familiar, this is helpful: http://www.walkscore.com/

Just type in an address and this site shows you what’s around the home plus it gives a rating on the ‘walkability’ to restaurants, parks, etc.

"The most important work you and I will ever do will be within the walls of our own home." - Harold B. Lee

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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FAQ's

2011-11-15T10:54:00.000-08:00

When I actually get a loan for my actual home, am I obligated to use the lender that pre-approved me?

Not at all. The pre-approval will not cost a dime so you are not locked in to any lender that pre-approves you.

Why does Trulia and Zillow have so many listings that are inactive?
They do not receive a feed from the local MLS (Multiple Listing Service). The real estate agents themselves have to go in and add the listing to these sites. When the home sells and it's listed on these sites, same thing. Many agents do not update the status of the listing. These sites are great, but in order to get a truly accurate feed of listings, you'll need to go to a real estate agent's site, Realtor.com, or once you've started working with a buyer's agent, they will set you up on an automatic feed.

Do we need other professionals besides a home inspector to inspect a foreclosed home?

Sometimes yes, and this applies to all homes, not just foreclosures. Have your home inspection first, then progress from there. If there are electrical issues, have an electrician come out and give you estimates. Use those estimates when negotiating with the seller.

How long should we expect to wait for short sale approval?

On average, anywhere from 2 - 9 months.

Why is the square footage rarely listed on a listing sheet?
This is a good one; we don’t know. This is the only area in the country (Chicagoland) where agents are reluctant to list the approximate square footage. Our guess is that someone got in trouble a long time ago for listing inflated square footage figures. Nowadays, it states right on the listing sheet that all information is approximate, so we don’t know why it’s still an issue.

Speaking of square footage.....

Always know that when you do see square footage on a listing, it usually does not include the basement. MLS rules prohibit us from listing below grade square footage, however, if it’s a walkout basement, we’ve seen it added to the total. Ask your agent to clarify for you.

"Consistency is the last refuge of the unimaginative" - Oscar Wilde

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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First Time Home Buyers Taking Conservative Measures

2011-11-08T11:33:00.000-08:00

We sent out a press release that we feel you should all take a look at as it tells the tale of what’s happening in the first time homebuyer market right now. It was picked up by WBBM radio and an online publication on the East Coast.

We are starting to see more and more couples, and individuals, spend less of their income towards their monthly mortgage payment. They can qualify for more, but they are playing it safe. It's a movement that we advocate.

"An author is a fool who, not content with boring those he lives with, insists on boring future generations." - Charles de Montesquieu

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Zillow's Affordability Calculator

2011-11-01T11:04:00.000-07:00

It’s a common question at our seminars, “How much home can I afford?” At StartingPoint Realty, we believe there is a lot that goes into that answer. You must look at your lifestyle instead of what a bank will loan you. However, what a bank will loan you is a good starting point.

Zillow’s calculator is decent. Some of you might find it easier than others we’ve posted. You have to click on the advanced features to get the whole picture.

"Humor is everywhere, in that there's irony in just about anything a human does." - Bill Nye

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Awesome Customers - Rochelle & Terri

2011-10-25T10:37:00.000-07:00

"My sister and I had been renting and were approaching the end of our lease. We had to decide on continuing to rent or consider entering the world of ownership. We didn't know the first thing about buying a home and were terrified of the thought of the home buying process. We stumbled upon StartingPoint Realty through various internet searches and are so glad we did. Ryan took the time to meet with us to go over our options, answered all our questions and provided us with some very helpful information. When we decided the time was right, we knew we wanted an agent that would be patient, knowledgeable and understanding. That's exactly what we got in Ryan.

After looking at a few places and getting discouraged, he reassured us that we would find exactly what we were looking for. He introduced us to an area that we absolutely fell in love with. Before we knew it, we were homeowners and couldn't be happier! Ryan was there every step of the way, keeping us informed and at ease. He introduced us to some amazing people that helped make for a smooth process. His down-to-earth personality and cool, calm demeanor made us feel comfortable which was exactly what we needed. We could not have picked a more perfect agent! If we had to do this again, no doubt we would be using Ryan. We recommend him to anyone who is thinking of buying a home. He truly cares about his clients. Not only did we get a place that we love, we also gained a pretty awesome friend. He's the best!"

"Nobody realizes that some people expend tremendous energy merely to be normal." - Albert Camus

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Multiple Offers?? Over List Price?

2011-10-18T11:15:00.001-07:00

Recently we've seen two separate clients get into multiple bid situations where the final price sold above list price.

Des Plaines, list price $275,000. Client offered $270,000. Two other offers were made. Client went to $280,000 and got the home.

Glenview, list price $725,000. Client offered $730,000 as we knew there were three other offers. There ended up being five other offers. Client did not get the home.

We hate to lose. However, both clients understood VALUE over ASKING PRICE. We have several stories where the buyer came in low and negotiated a good price, but those would make sense to the first time home buyer. Going over asking price in this market doesn't seem right, but sometimes it is. In the Des Plaines home example, the bank appraisal came in at $300,000. He went over list price, but he's probably sitting on $20,000 in instant equity. Again, look at the value of the home. There are sellers out there that will price their home aggressively. Be prepared.

"The more I want to get something done, the less I call it work." - Richard Bach

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Interest Rates

2011-10-11T10:48:00.000-07:00

It’s rare when a potential home buyer comes to us and says, “I’m ready to buy because I’ve read the interest rates are so low." Usually, it’s more of a lifestyle decision (getting married, new job, having a child). But if you’re looking in the next few months, your cost to borrow money will be the cheapest it’s ever been, meaning your monthly payments will be lower because of it. Congrats, here's an average from some of the lenders we've spoken to (as of 9/30/11):

FHA 30 year fixed: 4.0%

Conventional 30 year fixed: 4.0% - 4.25%

Remember, when talking to lenders, it's all about the rate AND their fees. Do not look at these items independently.

Here's Wells Fargo's rate website.

"It is only possible to live hapily ever after on a day-to-day basis." - Margaret Bonnano

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Featured Listing - 960 W. Cuyler, Unit 1N, Chicago

2011-10-04T11:55:00.000-07:00

Welcome home to this sharp and spacious two bedroom, one bathroom condo! Upon entry, you will notice the gorgeous hardwood flooring and molding details, which enhance the living and dining areas. This beautiful unit features a cozy living room, making it the perfect place to entertain guests. Nearby you will find the separate dining area, which is surrounded by windows that provide amazing natural lighting. The stunning kitchen welcomes your culinary skills with its stylish cherry cabinetry, stainless steel appliances, and granite counter tops. In the updated, bright bathroom, you will find a dash of contemporary style with the vessel sink. With an in-unit washer and dryer, ample closet space, and plenty of common-area storage, this condo is the perfect blend of convenience and sophistication. Located in a well-kept courtyard building, this unit is only a few blocks from the Lake, the El, Wrigley Field, and only an Express ride away from Downtown. This is definitely the one you've been looking for!

Schedule your private showing today! Click here This e-mail address is being protected from spambots. You need JavaScript enabled to view it to email Ryan, or call 847-348-1154.

Additional Photos Printable Brochure Listing Information Sheet

"The reason why worry kills more people than work is that more people worry than work." - Robert Frost

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Awesome Customers

2011-08-23T11:15:00.000-07:00

Over the past few months, we’ve received a number of Yelp reviews, all five star ratings. It’s overwhelming as we want to be this little company that helps potential first time home buyers and to see the response from past / current clients is amazing. Thank You!!

Click here to link to our Yelp page.

Here’s a sentence or two from recent reviewers:

Ashley H.
Evanston, IL

"If you're looking to buy, you won't regret using Starting Point Realty to find your dream home. Our experience was extremely positive, and the process wouldn't have been as smooth with anyone else."

Brian A.
Glendale Heights, IL

"I had the greatest experience with Kelli as my agent from StartingPoint Realty. I am a first-time home-buyer, and she helped me every step of the way. She made us feel like more than a client. We honestly felt that we were members of her family, and that she genuinely wanted us to be happy with our first purchase."

Erin L.
Chicago, IL

"We do not even know where to begin. Ryan was awesome! That's really the understatement of the year, for someone who goes far above and beyond for his clients; listening, giving advice, being honest, and helping in every way possible."

Jenny K.
Arlington Heights, IL

"Ryan is great to work with for a number of reasons. He asks how much you want to spend on a house and doesn't pressure you to look at more expensive houses than you can afford. He was very responsive in getting us in to see the houses we wanted to see, when we wanted to see them. He really went above and beyond and even came out with his family on an evening when he was not well enough to drive because he had his wisdom teeth out (that morning) -incredible.
Ryan is down-to-earth and calm...you may wonder why I mention this. Well, our first real estate agent would yell at us and set fake deadlines to pressure us every step of the way. Ryan kept us informed and then made himself available when we were ready to act. Ryan does treat you like a friend and it makes you feel like you can trust him and that he is looking out for your best interests. He offers advice but will fight for what you choose to offer and negotiate. I feel like we got a great price on the house and a nice closing credit from the buyer to fix some major repairs."

"Get the facts, or the facts will get you. And when you get them, get them right, or they will get you wrong." - Dr. Thomas Fuller

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Radon

2011-08-09T11:38:00.000-07:00

We try to be as exciting as possible in The Elbowroom, but some subjects are a little stale. We'll try our best to flower this one up. Radon is a natural element that takes the form of a gas and resides in the ground. So what? Well, chances are high that radon will get into your home, but the issue that you need to be aware of is that too much radon is a bad thing. You need to make sure the radon level in your new home is minimal.

In Illinois, you’ll sign off on a Radon disclosure (sample) where the seller is going to state whether or not they have tested for Radon in their home. Most will state that they do not know of an elevated radon level in their home. So it's up to you to investigate.

Your options are:

1. After the contract is signed - Pay $180 (or so) for a test that will give you results within a week. If the results are high, negotiate with the seller for the cost of radon mitigation. That cost to mitigate radon in a typical single family home is on average $1200.
2. Don't do #1, close on the home - Go to Home Depot and pay $35 for a self test kit. You will have to mail this in and the results take 3-4 weeks. If the result is too high, it will be your expense to mitigate.
3. Do nothing - no test (not recommended)

If you’re buying a home from a bank, they probably won’t pay anything towards mitigation unless you’re willing to walk away. They might cave at the last minute, maybe not.

If you’re buying a condo or townhome, more discussion is needed, be sure to ask your agent and home inspector.

Here’s the website of a local radon tester in the area and they have a section where they’ll show you radon level stats from every city they’ve tested in.

"The trouble with an open mind, of course, is that people will insist on coming along and trying to put things in it." - Terry Pratchett

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Average Cost to Replace Major Household Items/Appliances

2011-08-02T13:57:00.000-07:00

We posted something like this a few years ago, many of you liked it, so we thought we’d put it up again. When looking around for a home, you'll find at least a few items you'll want to change. We're always asked the replacement costs of these items, so we thought we would lay it out for everyone:

Flooring:

Hardwood floors: $7.00 - $10.00 per square foot installed
Carpet (mid grade): $3.00 - $5.00 per square foot installed
Pergo: $5.00 - $7.00 per square foot installed

Kitchen:

Refrigerator (Side by Side): $800 - $1400
Refrigerator (Side by Side - Bottom Freezer): $1100 - $2700
Oven: $400 - $1300
Microwave (Over the Range): $300 - $600
Dishwasher: $400 - $1300
IKEA Cabinets (L Shaped, Basic Set Up): $1300 - $2500
Granite counter top: $50 - $70 per square foot installed
Laminate counter top: $15 - $18 per linear foot installed
Sink: $200 - $550

Bathroom:

Toilets: $50 - $150
Vanity: $350 - $1,000

Other Major Items:

Furnace (1100 - 1500 sq. foot home): $2200 - $3500
Central Air Conditioning Unit: $1700 - $2500
Hot water heater: $700 - $1100
Washer (Top Loader): $600 - $1100
Dryer: $500 - $1200

These items are estimates only. You can find cheaper and much more expensive models (fancy washer / dryers). We just wanted to give you an idea of what the average costs are so when you are looking around, you have a general idea.

"Outer space is no place for a person of breeding" - Lady Violet Bonham Carter

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Five Questions Potential Buyers Think are Stupid Questions - But They’re Not (We’re Biased, We Believe There Are NO Stupid Questions)

2011-07-26T12:05:00.000-07:00

As a first time buyer, you might be intimidated to ask a real estate agent a bunch of questions before working with that agent. Don't be. These people are going to be working for you and they should understand that you've never done this before. But to get you started, here are five questions potential buyers think are stupid - but they're not:

Q. Do the appliances come with the home?

A. If they are in the home, typically yes. However, make sure you get it in writing. Sometimes the seller might want to take their fancy washer and dryer, but that should be in the listing sheet. In some other states, it is NOT customary that the appliances stay. But here in Illinois, it is typical.

Q. On a short sale, should we do the home inspection right away or wait until the bank approves it?

A. This is actually a tough one. Our views on this subject has changed over the last three years. Our opinion is that if you're buying an older home or one where you believe there might be some major issues, we’d do the inspection right away. If it’s a condo or a home where the home inspection issues might be minimal, we might recommend waiting until the bank approves the sale.

Q. How many lenders should I talk to in order to get preapproved?

A. One. Talk to a few after your offer gets accepted, to do so beforehand is a waste of time.

Q. How much of a purchase price can I afford (that one is asked a lot)?

A. Once you talk to lender, you’ll know what the bank will lend you. This will depend on your income, debt, and credit score(s). They use a formula - basically they do not want your housing expenses (interest, principal, insurance, assessments) to be more that a certain percentage of your monthly income. Here’s a good link explaining the ratios: click here.

Now remember, that’s what a bank will lend you. That doesn’t mean that’s what you should spend. You might be approved for $3000 monthly payment, but is that too high? Do you eat out a lot? Do you take a lot of vacations? Are you having children soon? Daycare? Is your career solid? Fortunately, we’ve seen a lot of people lately go the ultra conservative route, which is a great thing. Remember, you’re probably going to be in this home for 4-6 years, don’t stretch yourself too thin.

Q. Does the real estate agent make all the showing appointments?

A. Yes, they will also go with you when looking at properties. It is their job to point out the negatives and positives of each home. Most of the time you’ll be in the same car with your agent as long as you’re comfortable with that person.

"If we couldn't laugh, we would all go insane." - Jimmy Buffett

Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Area Stats - Chicago, Logan Square

2011-07-12T12:38:00.000-07:00

Logan Square is an area that has come up in conversation quite a bit with new buyers in the last couple of years. For awhile, Logan Square seemed to be hanging in there even during the crash times. But you can see that after the first time buyer credit expiration from last year, the area cooled off quite a bit. The data is derived from all condos and townhomes that have sold in the past 12 months under $500,000. The number of units sold is trending downward by almost 60%. Please understand that a lot this is due to the tax credit expiration. A bunch of people rushed in to buy in March and April of 2010 and closed through June 2010. The trend in supply has also trended downward at a rate of almost 40%. You can see the area has made a little bit of a rebound in the past couple of months.

Prices have slid 10% on the median and 16% on the average, since last year. This an area, however, that can shoot up just as quickly as it can fall. Keep an eye on this activity if this is an area you are interested in.

"Eagles may soar, but weasels don't get sucked into jet engines." - John Benfield

Written by Ryan Gable

Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
http://www.startingpointrealty.com/
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Answer to the Question - Should You Interview an Agent Before Working with Them...? YES!

2011-06-14T10:46:00.000-07:00

As a first time buyer, you might be intimidated to ask a real estate agent a bunch of questions before working with that agent. Don't be. These people are going to be working for you and they will be your 'quarterback' for the home buying process. So here is our list of the top eleven questions that every first time buyer should ask a real estate agent before working with them:

11. How do you get paid? Hint - You don't pay for your agent to work for you, let them explain.

10. What is your current work load right now? Hint - A busy agent is good, you don't want someone who is out of the loop, but someone with less than four actively searching current buyers.

9. How many deals have you closed in the last three years? Hint - There is no right or wrong answer here. A new agent is not a bad thing; they will be hungry and will work hard for you. If you're interviewing a newer agent, ask about the support system such as their broker's (manager) involvement with their work.

8. Can I have three references of past first time buyer clients that have closed in the past 6-9 months? Hint - Again, if newer agent, ask for their broker's references.

7. Are there days you take off that I need to be aware of? Hint - You want an agent that is available when you are available. If Sundays are your best days to look at homes but the agent doesn't work on Sundays, you're going to have a problem.

6. Do you like your job? Hint - This will shock them a bit. Get them talking, ask "Why?" a lot. You want to work with a passionate, knowledgeable agent, not someone just looking to make a commission. You're looking for how they answer this question, not so much as the answer they give you.

5. What percentage of your business is dealing with first time home buyers? Can you give me an example of a creative negotiating tactic you recently used?

4. What was the biggest mistake that you made in the past 6 months and how did you handle it?

3. How many of your buyers had an appraisal that came in lower than the purchase price in the past 12 months? Hint - This happens sometimes, even with the buyer and agent knowing it might, but see how they respond.

2. Would you use any of your home inspectors that you recommend to your buyers for your home purchase?

1. Why should we trust you? Hint - We like open ended questions. Again, focus on how they answer this one instead of what they say.

"It is not a bad idea to get in the habit of writing down one's thoughts. It saves one having to bother anyone else with them." - Isabel Colegate

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Vacation Review - Disney Cruise

2011-06-07T08:12:00.000-07:00

Next month, I'll be attending a show at Lincoln Hall featuring a lesser known Austin based rock band called The Black Angels. I'll be writing a review of that show in The Elbowroom next month, but this month I'm going to go the corny route and write about our Disney Cruise we took on Spring Break, 2011. We understand about 60% of our audience do not have kids yet, but over half of that group will be having kids in the next three years or so. If this review doesn't apply now, it might in the near future.

I'm happily married with a six year old daughter (Alix) and a five year old son (Noah). We are a 'smaller house, many adventures' kind of family. So this year, we chose the Disney 7-day Mexican Riviera cruise as our flagship vacation.

Some background - We have gone on two previous cruises before, both Carnival. When you cruise, or any kind of vacation for that matter, it's a HUGE bonus to have the option of supervised activities for your children so you and your significant other can chill out. A friend of mine posted on Facebook recently that 'vacationing with your younger kids is simply relocating them.' I knew instantly what she meant. Even though you're on vacation, you still have to make sure they're fed, they go to the bathroom, you wake up when they wake up, you need to watch over them, make sure they don't jam a fork in their eye, etc. In other words, vacationing with your kids will still require much of the work that's required at home, which is a lot. But here is where Disney excels.

First off, Disney Cruise Line is about twice as expensive as any other cruise line. But that whole 'relocation' thing I just wrote about, most of that work is relieved but then it has the added layer of your kids having the time of their lives. Here's the breakdown:

Characters and Princesses - Jack Sparrow, Cinderella, Belle, Jasmine, Sleeping Beauty, Donald Duck, Mickey and Minnie Mouse are just some of the fully dressed characters seen throughout the ship. My kids met almost everyone of them and we took about 300 pictures. They loved it.

Oceaneers Club and Lab - On a Disney Cruise, they have separate areas for children to hang out and play, supervised of course. On our previous Carnival Cruises, this was not a good feature. The kids area was boring, not much to do. On our Disney ship, total opposite. I wanted to hang out in there. Movies, computers, Wii, character visits, themed activities (Toy Story 3 Boot Camp), cooking classes, slides, climbing nets, etc. My kids didn't want to leave. They would spend 2-3 hours per afternoon when we were at sea and maybe an hour at night if they wanted to go. Perfect time for Mom and Dad to have a super foofy drink poolside. Note - if your kids are not in day care, preschool, kindergarten, or grade school, I can't guarantee success with this important aspect of this cruise. There are a lot of kids in these areas and a lot going on, if your kids are not used to this, they might not like it.

Stage Shows - There's a show each night, all geared towards kids, but great for the adults as well. Toy Story 3 and Disney Dreams were the highlights. Each show is not too long, not too short. The production is top notch.

Current Movies - Yes, we saw 'Mars Needs Moms' the day it came out in theaters, in 3-D as well. We also saw 'Gnomeo and Juliet' in 3-D. These movies are playing throughout the day and night. In the room movies are free and they play several old and new Disney movies 24 hours a day. Perfect for the early a.m. wake up call from your six year old.

Service - Unbelievable. As a business owner, truly inspiring. Never a "No," never attitude, always a smile, everyone goes the extra mile.

Food - This was the only average grade. We had better on Carnival, and the kids choices were typical (hot dog, fried chicken tenders, pancakes, waffles) but I understand that on a 7 day cruise, food supply diversity is tough on space. We started ordering adult entrees for the kids half way through, that was the better solution.

Adult Stuff - Fitness center was adequate, I also used the 1/3 mile jogging track they had. The spa was really nice, geared towards couples. They also had a Rainforest Room, it's co-ed with a two steam rooms, a sauna, and a couple of rain showers. I'm a spa junkie so I was in there everyday.

Getting on and off the boat - super simple, total opposite of the experience we had on Carnival.

I could go on about the excursions, but those will be the same no matter what cruise you choose. We went to Cabo San Lucas twice and Puerto Vallarta. Both were excellent.

So was Disney worth twice the cost of Carnival? Absolutely. I had a great time seeing my kids laugh and smile every 5 minutes. There was never an “OK, now what are we going to do?” moment on this ship. I'm hoping as my kids get older that we'll be doing more adventurous vacations (National Parks, skiing, etc.) so this might be it as far as cruises go for awhile, but what a great memory it is.

"For the most part, fear is nothing but an illusion. When you share it with someone else, it tends to disappear." - Marilyn C. Barrick

Awesome Customer Ann Chicago, Lincoln Park

2011-05-31T14:11:00.000-07:00

"When I found out my job was requiring me to relocate to Chicago from Los Angeles, I decided it was the right time to buy my first home. Moving to a new and unfamiliar city is stressful enough and many people were surprised I decided to buy and not rent. Ryan not only helped find me the perfect townhouse, but he also took the time to help me navigate the city and determine the right neighborhood to suit my personality and interests. Ryan cares immensely about his clients needs. He truly went above and beyond to not only make the purchase of my first home easy, but that I also had a smooth transition moving to Chicago.”

"To play it safe is not to play." - Robert Altman

Foreclosure Corner

2011-05-24T14:07:00.000-07:00

Here in the ‘Foreclose Corner’, we talk about recent client bids on foreclosures and how they fared. This is meant to prepare you for what’s out there in the bank owned property market:

Be prepared if you are looking at a well priced foreclosed home. As you can see, they can get scooped up rather quickly. This situation can be difficult for the first time buyer because if you read the newspapers, the price should always be lower, right? That is correct, it's just that these prices ARE low when they hit the market.

An example we use at our seminars: if you were outside your apartment with 25 friends and someone pulled up with a brand new BMX 7 series car and offered it to you for $100, would you say 'no, I'll give you $80 for it', or would you take the good deal that's right in front of you? Most say they'd grab it and happily pay $100, but a few say they would try to haggle the price. Then we ask of those few who would haggle if they would get upset if one of their friends happily paid the $100 and took it. The thought process then changes for most in the 'haggle' group, but for some, it doesn't. Just understand that most of the time, you can't have it both ways. It's more of an exercise so people realize what type of a negotiator they are and that they understand the pitfalls and rewards of each outcome.

Most of these properties are Fannie Mae owned homes. We are noticing that Fannie Mae is pricing their foreclosed properties aggressively. If you see anything that states ‘HomePath’ either in the listing info or in the home, that’s when you know it’s a Fannie Mae owned home. They are also running a promotion that they’ll give the buyer 3.5% towards closing costs. Be sure to ask for it.

"Never attribute to malice what can be adequately explained by stupidity." - Unknown

FHA Loans are Assumable

2011-05-17T19:05:00.000-07:00

We post this every now and then in the blog, but with rates remaining under 5%, we’d like to remind you that a hidden gem with FHA loans is that they are assumable. Here’s an example of how this would work:

Sue buys a home in 2011 for $200,000 and utilizes an FHA loan with a rate of 4.75%

Sue owns the home for five years and decides to sell. The current mortgage interest rate in 2016 is 7.75%.

Sue reads our blog and remembers about her FHA loan being assumable. So, she lists her home for $225,000 and she has a balance on her loan of $175,000. In her advertising of the home, she states that she has an FHA loan that is assumable with a 4.75% interest rate.

A potential buyer looks at her home and looks at a similar home down the street. The home down the street is the same price, but no FHA loan is attached.

Sue advertises the assumability feature of her loan because she figures out that if a potential buyer is considering either her home or the other home on the street and takes out a $175,000 mortgage, AND if that buyer were to ASSUME her FHA loan, the breakdown would be as follows:

Sue's home, assuming her FHA at $175,000 loan - principal and interest at 4.75% = $912.88 a month
Home down the street, obtaining new loan at $175,000 - principal and interest at 7.75% = $1253.72 a month

And, Sue's home would have 25 years left on the loan. The home down the street - 30 years. Of course, the buyer would have to qualify for an FHA loan (easier than a conventional) and the buyer would have to pay Sue the difference between the balance of the loan and whatever purchase price they agree to.

If you were the potential buyer and it came down to these two homes, which one would you choose if the homes themselves were relatively equal? Easy choice.

"Happiness comes of the capacity to feel deeply, to enjoy simply, to think freely, to risk life, to be needed." - Storm Jameson

New Web Search Tool

2011-05-10T18:20:00.000-07:00

StartingPoint Realty has invested in a new and improved property search tool, the feedback has been great. Please give it a spin: StartingPoint Realty Property Search

"I'd rather work with someone who's good at their job but doesn't like me, than someone who likes me but is a ninny." - Sam Donaldson

Wells Fargo Home Buyer Assistance Page

2011-05-03T12:08:00.000-07:00

Wells Fargo has a helpful page that shows all the first time homebuyer programs available in each state. View the page here.

Also, they just rolled out this program as well:

The Wells Fargo Community Development Mortgage Program Highlights:

Only a 2% down payment required
No PMI
Gift funds allowed for the down payment (Does not have to be from a relative)
No asset reserves required
Conventional loan product (You can use this on condos that are not FHA approved)
Can use a non-owner occupied co-borrower (Must be a parent. Parent's income does not count towards the income limit)
$60,100 income limit for 1-4 borrowers
Owner occupied condos, townhomes and single family homes
Sellers can contribute up to 3% to be applied to closing costs and prepaids
Very competitive 30 year fixed rates
42% debt to income ratio allowed
Do not have to be a first time homebuyer

The debt to income ratio will be the tough one at these income limits, but some of you will find this useful, especially condo buyers. If you need a contact at Wells Fargo, let us know please.

"Be contented when you have got all you want." - Holbrook Jackson

Answer to the Question - Should You Interview an Agent Before Working with Them...? YES!

2011-04-26T14:04:00.000-07:00

As a first time buyer, you might be intimidated to ask a real estate agent a bunch of questions before working with that agent. Don't be. These people are going to be working for you and they will be your 'quarterback' for the home buying process. So here is our list of the top eleven questions that every first time buyer should ask a real estate agent before working with them:

11. How do you get paid? Hint - You don't pay for your agent to work for you, let them explain.

10. What is your current work load right now? Hint - A busy agent is good, you don't want someone who is out of the loop, but someone with less than four actively searching current buyers.

9. How many deals have you closed in the last three years? Hint - There is no right or wrong answer here. A new agent is not a bad thing; they will be hungry and will work hard for you. If you're interviewing a newer agent, ask about the support system such as their broker's (manager) involvement with their work.

8. Can I have three references of past first time buyer clients that have closed in the past 6-9 months? Hint - Again, if newer agent, ask for their broker's references.

7. Are there days you take off that I need to be aware of? Hint - You want an agent that is available when you are available. If Sundays are your best days to look at homes but the agent doesn't work on Sundays, you're going to have a problem.

6. Do you like your job? Hint - This will shock them a bit. Get them talking, ask "Why?" a lot. You want to work with a passionate, knowledgeable agent, not someone just looking to make a commission. You're looking for how they answer this question, not so much as the answer they give you.

5. What percentage of your business is dealing with first time home buyers? Can you give me an example of a creative negotiating tactic you recently used?

4. What was the biggest mistake that you made in the past 6 months and how did you handle it?

3. How many of your buyers had an appraisal that came in lower than the purchase price in the past 12 months? Hint - This happens sometimes, even with the buyer and agent knowing it might, but see how they respond.

2. Would you use any of your home inspectors that you recommend to your buyers for your home purchase?

1. Why should we trust you? Hint - We like open ended questions. Again, focus on how they answer this one instead of what they say.

"It is not a bad idea to get in the habit of writing down one's thoughts. It saves one having to bother anyone else with them." - Isabel Colegate

Free First Time Home Buyer Seminars

2011-04-12T16:57:00.000-07:00

"I don't know if you remember me, but my husband and I went to a seminar you gave at Goose Island earlier in the summer. Not long after the training, we found out that I had received a job offer out in Phoenix, AZ. Anyways, long story short, we just closed on a house out there this week and a lot of the thanks goes to you and that seminar for making us aware of what we were getting ourselves into! I've enclosed a picture of the house." - Past Seminar Attendee

Some of the subjects covered:

- Where do I start in this process?
- Foreclosures / Short Sales
- Roles of the Lender/Mortgage Broker
- FHA / Conventional Loan Guidelines
- Credit
- Pre-Approval
- Roles of the Real Estate Agent
- Searching for Properties
- Contracts
- Negotiation
- Closing

Here are some questions that were asked during some recent home buyers seminars:

- Do I really need a home inspection?
- Can I fire my Realtor?
- How much can I GENERALLY expect my closing costs to be?
- Will the utilities be tranferred probably when I buy a bank owned home?
- How many lenders should I request quotes from?
- What is a 'table closing'?
- What does MLS stand for?
- My lease is up April 30th, when should I start looking for a home?
- What can I do to get my credit score higher?
- Can we still get a home if one of us has great credit and the other has not so great credit?
- Where do I start in the negotiation process?
- Does earnest money show the seller how serious the buyer is?

If you'd like answers to any of these questions, or any others that you might have on your own, please contact me. Thanks.

Movie Review - Eric Clapton Crossroads Guitar Festival 2010

2011-04-05T11:46:00.000-07:00

Concert films are becoming a dying breed. They were once a tour de force, one to be recognized. But in our instant gratification world of today, a two hour film with music and background stories just isn't making the cut. That's sad really, but for those of us that enjoy them, we must still appreciate that they are still made. I think back to the concert films ‘Woodstock’, ‘The Last Waltz’, ‘Rolling Stones Rock N Roll Circus’. These were great, but maybe more attention was given to the detail of these films because there wasn't ITunes or You Tube. That's not to say I don't agree with progress. I'll accept the compromise, because being able to download the latest Black Keys video or watch a vintage Buddy Guy / Junior Wells clip within seconds is now vital to my existence. But every once in awhile, a recent concert film is produced that deserves to be in the category of those earlier films. I've owned the Clapton Crossroads 2010 DVD now for three months and I watch at least some of it almost on a weekly basis. It's top notch, a must have for music fans.

Quick background: Eric Clapton went through more than a few years being hooked on alcohol and heroin. He cleaned himself up in the 80's, and in the 90's, he founded the Crossroads Centre in Antigua. The Crossroads Centre is rehab facility for drug and alcohol addicts. The Crossroads Festival is the benefit concert that supports Clapton's facility.

From the start of the DVD, you can see that effort went into having you feel the tone of the day. It was hot, 95 degrees - the intro segment did a great job showing Chicago on a typical late June day, set behind some slow blues in the background. Then, BAM! Right into a song with Sonny Landreth and Eric Clapton called 'The Promised Land', one of the day’s best performances. Turn this song up loud, furnace to 90, and have a beer in your hand, you'll then start to get a feel for the day. Sonny Landreth was the first performer of the day, and one of several that played that day that you probably never heard of. But these are all quality musicians, 25 in total.

In my opinion, the DVD didn't miss anything that should have been included. It's a four and a half hour DVD, cut from an eleven hour concert. Not an easy task, but they go it right. The sound and video quality are as good as it gets, near perfection. There are a lot of interviews and background talk by a lot of the artists and some will find this annoying, I did not. I love hearing these people talk about the guitar and what their influences are. It might be as close as you'll get to having a conversation with any of these follks. As for the performances, I was especially happy that they included Robert Cray, Jimmie Vaughn, and Hubert Sumlin's version of Howlin' Wolf's 'Killing Floor'. Sumlin was Howlin' Wolf's guitarist for many years. Other highlights include the Buddy Guy - Ron Wood - Johnny Lang set, Gary Clarke Jr. - Doyle Bramhall II set, Vince Gill - Keb Mo', and the Clapton - Winwood songs.

But it was the Derek Trucks / Susan Tedeschi performances that made it for me. Warren Haynes joined them for a few as well. They played with their newly formed band, and when you combine the best present day slide guitarist with the best female blues vocalist, who happen to be married to each other, you find magic. Pure bliss actually. If you don't get chills while you watch, I'm sorry. They even played one of my favorite Allman Brother's tunes, 'Don't Keep Me Wonderin' with Los Lobos. The Allman Brothers were supposed to perform that day, but Greg Allman had to have an emergency liver transplant the day before. For those that have not seen or heard of Derek Trucks, this is your ticket. He has become my favorite current guitarist, although I realize I'm a big slide guitar fan. He's not fancy, doesn't light his guitar on fire or anything, but he's one of the few that can make the guitar sing. It becomes a different instrument.

Was I at this concert? Yes. I actually was fortunate to be backstage for the whole day, even had the most casual and unforced conversation with Eric Clapton himself for about 13 minutes and 23 seconds. I’m not a religious man, but I was truly blessed that day. So am I biased? Seeing as how I got to meet most these people and discover a newfound appreciation for the music (Blues) that I've been attached to since I was 9 - I probably have a skewed perception of the day. And what I mean by 'new found appreciation' is that I was able to learn that these people are normal folks. The have kids, wives, ex-wives, problems, and they smile like most of us. It so happens that for most of them, their talent affords them celebrity and money. But a lot of them don’t act that way (Vince Gill, Derek Trucks) and to experience that is truly special.

Written by Ryan Gable

Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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"I'm sick of following my dreams. I'm just going to ask them where they're going and hook up with them later." - Mitch Hedberg

Awesome Customers through The Chicago Public School System Housing Program

2011-03-30T12:27:00.000-07:00

Nick is an absolute hero! We initially called him because we wanted a fresh start after experiencing a tough time in this supposed "buyer's market." (We had placed offers on 9 different places, but were outbid every time!) Our luck seemed to change once we started working with Nick. He was amazingly quick to respond to our e-mails, and made us feel comfortable contacting him whenever we had a question or a worry. After just a few outings, we found the house of our dreams, but we didn't think we had a chance since the sellers had it priced way above what we could pay. Nick jumped in and worked his negotiating magic, and somehow, miraculously, made our impossible dream come true! We LOVE our new home, and we are forever indebted to Nick for being such an excellent real estate agent, cheerleader, therapist, and friend. We are recommending him to everyone we know!

Natalie and Kip, Chicago, 1/11

Written by Ryan Gable

"Those who believe in telekinetics, raise my hand." - Kurt Vonnegut

It’s About the Monthly Payment 1st, Purchase Price 2nd

2011-03-22T17:13:00.000-07:00

We always hear, “I’m preapproved / comfortable to spend $225,000.” Our follow up questions always are, “how much are you putting down, and what payment are you comfortable with?” Why? Here’s a recent scenario:

Client has up to $40,000 to put down. They want to stay under a $2600 payment or less (we explained their tax benefit would actually lower the payment by at least $250 a month, but that’s a different topic). So we were searching for condos in Chicago for $325,000 and under, HOWEVER, a close eye is kept on the monthly payment. Here was the real life scenario:

Condo A
Purchase price - $325,000
10% Down Payment
Monthly Assessment - $325
Taxes - $5500

Condo B
Purchase price - $375,000
10% Down Payment
Monthly Assessment - $175
Taxes - $5100

To make it easy, we’re using 30 year fixed, interest rate 5.25%, and no mortgage insurance (there will be mortgage insurance since less than 20% down, but we're making this simple):

Condo A’s payment is - $2398.00
Condo B’s payment is - $2463.00

Very close payments for properties that have a $50,000 difference. However, condo B buyer just has to know that they need to have $5,000 more of a down payment.

Please pay more attention to the payment rather than just the purchase price. Your real estate agent should be doing the same.

Here's a link to our mortgage calculator, we've received a few compliments on it lately. If you're buying a condo, or a home with a home owner's association, just make sure to add in the assessments yourself. Another item to know if you are buying condo: your home owner's insurace (property insurance) is covered in the monthly assessment, but you'll still have to get insurance for your personal items and appliances ($30 - $40) a month.

**"What we think, or what we know, or what we believe is, in the end, of little consequence. The only consequence is what we do."** - John Ruskin

Written by Ryan Gable

3% Down Payment Program / Great Mortgage Info Blog

2011-03-15T07:21:00.000-07:00

We like to align ourselves with folks that eat, breathe, and study real estate and finance. Joe Burke from Guaranteed Rate is one of those people. Here's his blog which we know you'll find very informative plus if you scroll down to his January 26th entry, you'll see some info on their 3% down product:www.yourchicagomortgageguy.com

"Procrastination is the art of keeping up with yesterday." - Don Marquis

Condo VS. PUD and VA & FHA Condo Qualifications (A Little Long)

2011-03-08T16:33:00.000-08:00

We are going to avoid HOW a condo project can become FHA / VA approved, that’s a much longer explanation. Basically, if you’re going to be looking at townhomes and you are going to be getting an FHA / VA loan, you must understand the difference between a condo and a PUD (Planned Urban Development).

When you see a townhome, typically in the suburbs, you automatically think it’s just that - a townhome. However, most of those townhomes are actually condos. What? Yes, it’s true. When it comes to attached housing, the popular categories of ownership are either condo or Planned Urban Developments (PUDs). PUDs are also referred to as true townhomes. Who decides? The developer when they build the development. We’ve also seen some associations switch from one to another along the way, but that’s uncommon.

We can get into the legal language between the two, but know that condo ownership means you own 100% within the walls of your unit and a % of the common areas. You do not receive a survey when you buy a condo. With a PUD, it’s more like a single family home where you own a plat of land (maybe a small portion of the front and back of the home, and the land underneath the home) and the structure itself with a shared party wall next to the unit that’s your neighbor. If there are common areas, the association owns them.

All condos should have a homeowner’s association that governs the common areas. MOST PUD’s will have homeowner’s associations as well, some won’t. The associations for PUD’s can have some ‘architectural’ control over some or most of the exterior of the structure. The PUD subdivision of Brandywine in Villa Park is a good example. They are PUD’s. You own the plat of land with the structure, but if you put on a new roof, the association tells you what type of shingles you have to have. Replacing the front door or windows? It has to be a certain color. It just all depends on how the by laws of the association are written up and enforced.

How can you tell if it’s a PUD or condo if you can’t tell just by looking at it? Good question. This takes some research. In the legal description, it’s obvious, but that’s not always readily available. In the decs and bylaws, it will be obvious. The listing agent should have those, but if it’s a foreclosure, you’re not going to get too much cooperation. If you can snag the number of the management company, they might know. Then comes the listing agent. They don’t always know, so DO NOT depend on what their opinion is. A good buyer’s agent will be able to find out for you before you make an offer.

So what? Well, when you are obtaining an FHA or VA loan, you’ll need to know the difference. For either loan, if it’s a PUD, it’s no problem. Both VA and FHA treat PUD’s like single family homes. However, if it is a condo, the association or project has to be approved by FHA / VA. Here are the links to the two departments where they post the approved condos:

FHA: https://entp.hud.gov/idapp/html/condlook.cfm

VA: http://condopudbuilder.vba.va.gov/2.2/frames.html

Before December 2009, it used to be that if it was approved by one, it was automatically approved by the other. Not anymore, but with one exception. We emailed someone at HUD about this and this was the email:

If the condo association was approved by FHA prior to December 2009, then the VA can switch it to a VA approval. We would need a copy of the FHA approval and we would then assign it a VA number. This can be emailed tovaappraisal.stpaul@va.gov

If the property was not approved prior to Dec. 2009 by FHA; the association would have to come in for full VA approval. The documents required can be found in chapter 16 of the VA lender's handbook and can be mailed to the following address.

Construction and Valuation C/O Dave Campbell
1 Federal Dr.
St. Paul, MN 55111

Of the two, FHA is more popular. FHA is open to most people, while a VA is only open to veterans. So more condos are FHA approved than VA. If you find a condo that’s FHA approved, but not in the VA site, you might be able to switch it over if it was FHA approved before December 2009. To get a project FHA or VA approved is not impossible, it just takes time and there needs to be cooperation from the association.

One last thing: FHA is making several of the older FHA approved condo projects resubmit their info for re-approval by 5/31/2011. Many won’t renew because they don’t know this rule. But now you do, so if you are FHA or VA approved and you’re going to be buying a condo after 5/31/11, make sure the association is listed on the above link AFTER 5/31/11, because many will disappear.

"Experience is the name everyone gives to their mistakes." - Oscar Wilde

Answer to the Question - True / False

2011-03-01T13:34:00.000-08:00

The best deals out there are short sales and foreclosures - False.
There are still sellers out there with equity in their homes that need to sell. Also, some of the best deals we’ve seen in the past three years have been estate sales.

In Illinois, most of the appliances stay with the property when it sells - True, for the most part.
Just make sure you ask for them in your contract.

I have to have 20% down in order to buy a home these days - False.
As a matter of fact, maybe 5% of our past clients have put down 20%. FHA still allows 3.5% down, but we tell people that we like to see people have twice the amount of their down payment before they buy. Putting down $10,000? We like you to have $20,000 total before you buy so you have $10,000 in case of an emergency after you buy.

I can write off my mortgage interest and real estate taxes against my income - True.
Learn this scenario, it’s very important. Some of you are going to save a few hundred dollars a month.

If I’m going to get an FHA or VA loan, then I can’t buy a condo - False.
The association, building, or subdivision has to be FHA or VA approved.

I have to pay, out of my pocket, for my real estate agent and mortgage lender - False, with some exceptions.
The loan officer is paid by the bank; although you will pay some lender fees at closing (should be about $1,000, including your appraisal). If you utilize a buyer’s real estate agent and you purchase a home listed in the MLS, your real estate agent that represents you is paid by the listing agent’s real estate broker, which is paid to them by the seller. So again, as a first time buyer, the fee for your agent is included in the price of the home if you buy a home that is listed by another real estate agent and it’s listed in the MLS. SOME buyer’s agents have agreements with different terms. When you sell, it’s your turn to pay both agents’ fees if you utilize a real estate agent to sell your home.

And a question.....

If I put a contract in on a short sale, do I have to wait the whole 60 - 200 days or so for the bank to come back to me with their response?
Answer - What we tell people is to try and have your attorney write in to their ‘attorney review letter’ that the buyers will stay in the contract for 60 days, and at the end of those 60 days, the buyer will notify the seller, and the seller’s bank, if they will continue to wait for an answer. You basically want to see if there’s progress being made on the deal, or not. If there’s not, you can elect to cancel the contract and find something else. But again, you must have this clause in writing before the attorney review period ends.

"I always wanted to be somebody, but I should have been more specific." - Jane Wagner

Condo Ownership: What does it mean?

2011-02-01T05:43:00.000-08:00

It’s also come up recently as to what’s the difference between condo ownership and fee simple ownership. For an excellent blog that explains the difference, click here.

"If you believe everything you read, better not read." - Japanese Proverb

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter

Movie Review - The Town

2011-01-25T05:55:00.000-08:00

Michael Mann made a great movie, one of my top three favorites of all time, in the mid 1990’s called ‘Heat’. It was about the conflict a criminal (bank robber) has with himself and the outside world. He’s great at robbing banks, but he wants out. His instincts keep him in the game, but there's a part of him that yearns for a normal life with a wife, maybe kids. There’s tension, intelligent dialog, bank robbers wearing masks and carrying huge black duffel bags of cash, excellent acting (Deniro, Pacino, Kilmer, etc.), an epic shoot out scene in the streets of the city, a violent shooting towards the end for the sake of revenge, and an awesome ‘don’t come here, the cops are here scene’ where the main squeeze originally wanted to give up her man - but after seeing him, doesn’t go through with it. Why the in depth overview of ‘Heat’ for a review of ‘The Town’? Because everything you just read pretty much also happens in ‘The Town’.

But that’s not to say 'The Town' is a bad movie. It’s actually a very good movie. Ben Affleck directed this movie and it is better than his first, ‘Gone Baby Gone’. He’s getting better both as an actor and as a director. I never took him seriously until this movie. 'The Town' is about a band of criminals that were born, and still reside in Charlestown, MA. We're informed in the beginning of the movie that Charlestown is basically a breeding ground for folks that like to live outside the law. Sounds fake, but having met someone from Boston today who told me that it's not only accurate, but she shared a few stories that made me wonder why a movie wasn't made about this town earlier. But that's the magic of the movie, Affleck takes his time to let the characters set in, but yet he laces it with moments of intense tension. He doesn't go overboard with either one.

Affleck plays the lead of Doug MacCray. MacCray's dad (Chris Cooper) was a bank robber, now he's behind bars for life. His mother disappeared when he was a child. You understand that MacCray was doomed from the start. You learn that for awhile he latched on to anything that resembled family, no matter how dysfunctional, and he was a heavy drinker and drug user. But he's turned himself around, no more drinking or drugs, and although he's still a criminal, you sense right away that he has his doubts about staying in. He's intelligent, a quick thinker and talker. What's the spark for his slide towards exiting the bad boy life? Yes, a woman. Claire Keesey is her name, played by Rebecca Hall. The meeting and subsequent relationship between Keesey and Macray is unique. One where the audience knows the deep dark secret, but we don't know how it will unfold.

The relationship is the focal point of the main characters, seeing as that's how we learn about not only them, but most of the people around them. Jeremy Renner (Hurt Locker) plays James Coughlin, a close friend of MacCray's and fellow gang member. He's the hot head of the group, and he adds an element of uncertainty to an already chaotic storyline. As MacCray begins to make it clear that he wants out of the group, it's Coughlin that pushes him back in. The action scenes are great and being a huge fan of 'tension' in movies, this one had a few memorable moments.

There is one aspect of 'Heat' that Affleck chose to ignore for his film. In 'Heat', the cop and the bad guy almost develop a relationship with one another. There's respect for each other, and if one has to take the other down, he won't like it. In 'The Town', cop and robber hate each other. The cop, actually FBI, played by the talented Jon Hamm, even breaks the rules to pursue MacCray and his gang. There's pure hate for one another, which only adds to the dark and gritty landscape of the whole movie.

Does MacCray find peace? Does the he get the girl? Does she ever find out his deep, dark secret (it's actually worse than what you might think)? And if she does, what's her reaction? You'll have to see the movie to find out, but I think Affleck at least did a great job of making you want to find out the answers to all those questions.

Written by Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
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"Are you going to come quietly, or do I have to use earplugs?" - Spike Milligan

Free First Time Home Buyer Seminars

2011-01-18T06:20:00.000-08:00

"I don't know if you remember me, but my husband and I went to a seminar you gave at Goose Island earlier in the summer. Not long after the training, we found out that I had received a job offer out in Phoenix, AZ. Anyways, long story short, we just closed on a house out there this week and a lot of the thanks goes to you and that seminar for making us aware of what we were getting ourselves into! I've enclosed a picture of the house." - Past Seminar Attendee

Some of the subjects covered:

- Where do I start in this process?
- Foreclosures / Short Sales
- Roles of the Lender/Mortgage Broker
- FHA / Conventional Loan Guidelines
- Credit
- Pre-Approval
- Roles of the Real Estate Agent
- Searching for Properties
- Contracts
- Negotiation
- Closing

Here are some questions that were asked during some recent home buyers seminars:

- Do I really need a home inspection?
- How are real estate taxes derived?
- How much can I GENERALLY expect my closing costs to be?
- Will the seller pay closing costs?
- How many lenders should I request quotes from?
- What is a 'table closing'?
- What does MLS stand for?
- My lease is up April 30th, when should I start looking for a home?
- What can I do to get my credit score higher?
- Can we still get a home if one of us has great credit and the other has not so great credit?
- Where do I start in the negotiation process?
- Does earnest money show the seller how serious the buyer is?

If you'd like answers to any of these questions, or any others that you might have on your own, please shoot me an e-mail or give me a call.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Market Stats - Lincoln Park

2011-01-11T06:21:00.000-08:00

The last two areas we researched had some wild swings in both inventory and price decreases (Oak Park, Elk Grove Village). Recently, we’ve been working with a client in Lincoln Park and although not immune to the housing bubble, you’ll see things are a little more stable in Lincoln Park.

First graph here shows the median sales price for condos and townhomes that have sold under $500,000 in the past 12 months vs. the median price for units that are / were for sale:

The next graph shows the average list price vs. sold price %:

What do the graphs tell us? Over the past 12 months, the median price for condos and townhomes in Lincoln Park have decreased 11%. If you look closely, you'll see that November 2009 was a strong month for home sale prices in Lincoln Park, mainly because that was the month the original $8,000 tax credit was supposed to expire. If you take that month out of the equation, prices are stronger. The numbers also show us that the average LAST list price vs. sales price ratio is 95%. Compared to other neighborhoods and outlying suburbs, Lincoln Park is doing O.K. Know the data of the area you'll be searching in. The more informed you are, the better buyer you'll be.

"You cannot shake hands with a clenched fist." - Indira Gandhi

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
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Answer to the Question

2011-01-04T05:32:00.000-08:00

A medley of questions from this past month - and, of course, our answers:

What is a Manor Home?
Often referred to as a coach home, it’s more of a condo / townhome hybrid. USUALLY, these units are in clusters of four. There are four garages in a row, one for each unit owner. The door of the garage enters into a common hallway that leads to a main foyer. At this main foyer (there's also a front door to enter the foyer), you'll see two entrances for the units on the main level and a staircase that leads to two units on the top level. If you've been in one, you now know what we're talking about. If you haven't, you'll need to see one to understand it more clearly.

Will I lose my earnest money on a short sale offer?
A wise man once told us, ‘Whenever you write a check and hand it over to someone, there’s no guarantee you’ll get it back.” That’s true, but if you follow the guidelines in the contract and your attorney review addendums and something occurs within the scope of the provisions that protect you as the buyer (home inspection, mortgage contingency, etc.) you could then be legally entitled to get it back.

Is buying a condo for under $50,000 a good idea? That depends. If you're looking in an area where the median value of a condo is much higher than $50,000, then you have to know that there is a reason why it's listed for under $50,000. Reason #1 - The homeowner's association is so poorly run or even bankrupt, thus the only buyer that can purchase in the building is a cash buyer because a bank won't lend to a buyer looking to buy a condo where the association is in trouble. Might not be bad for investors who can pay cash, weather the storm, and rent the unit out. But for first time buyers, your costs and frustration could reach high levels. Always ask yourself, 'Why is this condo so cheap?'. That's a good start to finding the answer.

What issues can an appraiser find in a prospective home that will prohibit me from getting a loan for that particular home? Remember, the home inspector and the appraiser are two different parties. The home inspector works for you - not the city, state, real estate agent, or bank. They provide you with all the information you need in order to decide if you think the home requires too much work to fix up or not. The appraiser works for the bank, not you. They determine if the home is in livable condition and they render an OPINION of the market value of the home. This question deals with the "livable" portion. Some appraisers are not thorough at all, some thorough enough, and some are too picky on the properties. Example: We once had an appraiser not let a property appraise for value because one room was missing baseboards. Does baseboards make a home livable or unlivable? Also, a conventional loan appraisal and FHA loan appraisal will be different. Quite often FHA appraisals will be pickier on the property. For both, mold or mold like substances will be an issue. Active leaks, no heating sources, no water heater, or material damage to the home will be issues. For FHA appraisals, they can be picky on handrails, electrical outlets, flooring in all rooms, the roof (most want 3 years or more left on the age), running water. As one appraiser said to us recently, "One or two things are fine, once we start getting into three or four more problems, then we'll make it an issue."

"Is sloppiness in speech caused by ignorance or apathy? I don't know and I don't care." - William Safire

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
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Awesome Customer

2010-12-28T05:57:00.000-08:00

"From the moment that we met Lucinda and Ryan we felt supported not only by professionals but by good people. Lucinda our Realtor and now our friend, made the whole process of buying a house a lot easier and provided unconditional help and answered our hundreds of questions that we had as first time home buyers. She did an excellent job finding and showing several houses that could interest us, until we found our current home. Lucinda is not only highly efficient but also the sweetest and kindest person. Thank you Lucinda and Ryan you are the best!"

Rodrigo and Cynthia

"You know that children are growing up when they start asking questions that have answers." - John J. Plomp

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
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Movie Review - Pirate Radio

2010-12-21T05:41:00.000-08:00

I haven’t seen a great movie in over two months. But I watched ‘Pirate Radio’ the other night and it was a pleasant surprise. It shouldn't have been a surprise, mainly because it stars one of my favorite actors, Philip Seymour Hoffman and is laden with Rock music from the mid to late 60’s. But when I saw the preview, I thought this movie was going to be a disaster. How can you make a two hour movie out of the storyline? After the movie, I realized there was only one way to do it right, and the movie did just that.

I’ll get back to that, first the storyline. I guess back in the 60's, Britain only allowed Rock and Roll music to be broadcast for one hour a day. So a band of music fans with a little bit of cash set out to sea and broadcast Rock and Roll music 24 hours a day, 365 days a year. It seems most, if not all of Great Britain picked up the signal. So yes, this movie is loosely based on actual happenings in the water, but from what I understand, there were more than a few pirate stations at the time. Director Richard Curtis was just using this ship as a base for the fun and antics that probably went on in all these 'stations'. So if you're looking for historical fact, it's not here.

The ship plays Rock and Roll, the British government doesn't like it and they want to shut it down. It's important to note that this is not an action / suspense thriller where the DJ's are fighting off the British Navy on the high seas. Actually the opposite. And this was the basis of my hesitation for seeing the movie. How can you make this plot interesting once you get past the good music? Simple. The movie weaves in and out of small comedic episodes that occur between the shipmates (most of which are the colorful DJ's). Most of these episodes are funny, but with the backdrop of a pirate radio boat and the strong performances of the ensemble cast, it's good fun.

'Pirate Radio' is easy to review because I don't have to write about the characters, although, that's what they are - characters. All of them. The movie has two Oscar winners, Philip Seymour Hoffman and Emma Thompson and another Academy Award nominee, Kenneth Branagh. Hoffman plays the American DJ, Thompson the mother of a crew mate and ex-lover of another, and Branagh plays the angry government official that looks to sink (literally) the ship. But, in my opinion, it was three other actors that stole the show. First being Rhys Darby, who you know if you watched 'Flight of the Concords'. I don't even remember if he was a DJ or not, but he was on the boat and he was hysterical. Second is Rhys Ifans (yes, there are two actors named Rhys in this movie). He plays the famous British DJ, Gavin, who has come back to the ship after making a drug tour of the US. Ifans is getting his due as he'll be the next villain in the Spiderman movie series. He's got a ton of charisma and a scene stealer for sure, and as a side note, reminds me of Liam Gallagher from Oasis. The last, but in my opinion the best, was Bill Nighy who played Quentin, the owner and boss of the ship, but as mad and goofy as the rest. Honestly, I think he should have been at least nominated for a Golden Globe for comedic actor. He was that good.

Watch it with a glass of wine or two with the volume turned up a bit on a Friday night - you can do much worse.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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"A diplomat... is a person who can tell you to go to hell in such a way that you actually look forward to the trip." - Caskie Stinnett

Video - Foreclosure Moratorium

2010-12-14T11:23:00.000-08:00

We recently made a video where we talked about the possible effect of the foreclosure moratorium on condominium home owner associations. Several banks have imposed a self inflicted 'halt' of their foreclosure process due to title issues. We had a few clients affected as their offers were negated and the homes were taken off the market.

"Everybody hates me because I'm so universally liked." - Peter de Vries

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Answer to the Question

2010-12-07T05:54:00.000-08:00

What's the most important thing I can do RIGHT NOW in preparation for me to purchase a home in 2011?

It’s a common theme in The StartingPoint Blog and in our first time home buyer seminars, but the single most important action you can do right now in order to prepare to buy a home in 2011 is to talk with a loan officer. We are not loan officers, we are real estate agents so we derive no benefit from you taking this action. It's purely the best advice we can give you. A loan officer is the person who works for a mortgage lender. They are the ones that will consult with you on how to obtain a loan. We tell everyone that contacts us to speak with a loan officer right away, but maybe 25% actually do it. The others will wait until the last minute. Why? The number one reason is the fear of the unknown.

We empathize with that idea. A lot of us don't like weighing ourselves on a scale. Many don't like going to a dentist. But if we want to lose weight, get on the scale and set goals. If we don't want to lose our teeth and avoid problems down the road, we have to go to the dentist. If you want to rent for a few years, you don't need to talk with lender. If you are buying a home next year, you need to make the call soon.

Most people think: What’s going to happen when I call a lender? If my credit is bad, can I not get a loan for the next several years? What are the questions they are going to ask me? All valid questions, but PLEASE understand that the initial conversation with a lender is truly informal. Yes, important items are discussed, but it is pure consultation. Very IMPORTANT - there's no cost to have a lender pull your credit and consult with you, nor are you obligated to use them in the future.

As with all things in the The StartingPoint Blog, we try to break it all down. Here’s an example of how the initial consultation might go:

Amy calls David May from ABC Bank -

Amy - “ Hi David, I received this crazy newsletter for first time buyers and they told me to call a lender if I’m thinking of purchasing in 2011. Well, I am considering it, can you help me?”

David - “Hi Amy, yes I can help you. What I’ll do is pull your credit report, talk with you about your income and debts, and we’ll go from there. Sound good?”

Amy - “Yes”

David - “Ok, what’s your social security number?”

Amy - “999-99-9999”

David - “Ok, just give me minute here and let me pull the report and see what we can do. Good, your mid score is 690 and your total monthly debt payments look like they total $400, a student loan and a car payment, is that correct?”

Amy - “WOW, I thought my score was going to be much worse, I remember I had a medical bill that went to collections and I thought that would completely mess me up. As for the monthly payments, that sounds about right.”

David - “Yes, the medical bill issue was so long ago that the impact to your credit report is now minimal. The three credit reporting bureaus - Experian, Equifax, and Transunion weigh your last 12 months of payment activity much heavier than prior to the last 12 months. Ok, almost there. What is your gross annual income?”

Amy - “$60,000”

David -”How much money do you have for a down payment?”

Amy - “Well I have $20,000 saved, but I really want to keep my down payment as close to $10,000 as possible. I don’t want to put all of my money into a home, I like to have a savings account with some cushion.”

David - “Excellent. Very intelligent line of thinking. Ok, so here we go. Your gross monthly income is $5,000 and your monthly debt is $400. The bank wants your total income to debt ratio to be under 43%, this includes housing payments. So in your case, the bank wants your TOTAL monthly debts to be under $2,150. You have $400 a month in debt payments so that would leave you with $1,750 left over for a monthly payment. Of course, you don’t have to go that high if you don’t want to, but that’s your maximum.”

Amy - ‘That's great news, I was thinking $1,400 would be my maximum, but I’ll have to run the numbers again”

David - “If you can find a place you're happy with at that payment, do it. No need to stretch yourself. So with $10,000 down, and with your credit score, you can obtain an FHA loan. If you finance $200,000 at today's interest rates, your monthly payment for principal and interest would be $1,050 a month. If you figure taxes at $4,000 a year, that’s roughly $350 a month plus your mortgage insurance and homeowner’s insurance at around $200 a month, that puts you right at $1600 a month. Obviously, the amount of your real estate taxes is the variable cost here so pay close attention to each home's yearly taxes when you’re looking around. So there you go, you’re preapproved for a purchase price of around $200,000. As you start looking around, call me with the homes you like and we'll run the numbers again. Where would you like me to email this preapproval letter?

Amy - “Wait a second, that’s it? You mean, I’m all ready to buy a home?"

David -”That’s it. If you're looking to buy, let's say, in the Spring or Summer of 2011, then we'll run your credit again around that time just to make sure everything is good. But you did the right thing by calling me early, if something needed to be fixed on your credit report, we would need time to accomplish that. Good luck!!”

"I had a monumental idea this morning, but I didn't like it." - Samuel Goldwyn

Average Life of Appliances

2010-11-30T05:39:00.000-08:00

We posted this link before and it was big hit, so we though we’d repost it for those that missed it. A big question that comes up regularly when we’re out with clients is how long a certain appliance can be expected to last. Here are some estimates derived from Consumer Reports.

Feel free to read the comments as well. You’ll see many complain that the list is too conservative, while some add comments about how their particular appliance failed way too early. Thanks to Denny McAuley from HomeCheck America for passing this along.

"Silent gratitude isn't very much use to anyone." - Gertrude Stein

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Wells Fargo Low Down Payment Program

2010-11-22T12:53:00.001-08:00

For those of you obtaining an FHA loan and are looking to buy a condo, but are having trouble finding an FHA approved building, this might be the conventional option for you. Every once in awhile, banks will offer aggressive programs to show they're lending money for affordable homes. Harris does this quite often, and currently Wells Fargo has an aggressive loan for borrowers whose incomes qualify. Here are the details:

Mortgage loan guidelines
• Various down payment sources accepted
• Cash reserve requirements
• No Private Mortgage Insurance (PMI) required
• Seller contributions are allowed up to 3%

Property guidelines
• Properties within approved counties or census tracts
• Purchase transactions only
• Owner occupied primary residence only

Qualifying guidelines for applicant

• Borrower eligibility up to 80% of the median family income for the county or MSA1 for CDMP (No income limits for NCDMP)
• NCDMP qualifying debt-to-income 38% (42% allowed with credit score above 720 and 6 months principle, interest, taxes and insurance in reserve)
• Alternative credit history will be considered (NCDMP will require traditional credit only)
• Verified employment history
• Homebuyer education is required
• Landlord/mortgage reference required

The income limits can be the barrier for some of you, but it doesn't hurt to check it out. It really all depends on the county you're looking to purchase in. Please contact us if you need contact information for a Wells Fargo loan officer.

"Wit makes its own welcome, and levels all distinctions. No dignity, no learning, no force of character, can make any stand against good wit." - Ralph Waldo Emerson

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Pet Shelters

2010-11-16T05:07:00.000-08:00

We try not to be all about doors, windows, and roofs here. We always try to convey the message that it's what you put in the home, meaning your family and your experiences, that make a happy home. A pet is can be a vital part of that equation. There are many benefits to owning a pet, including health and physical benefits as well as emotional benefits. A pet gives unconditional love and is always excited to see you when you walk through the door!

Before you even start looking, be sure to do your research about the types of animals and breeds that you are interested in. You may fall in love with the looks of a certain breed, but then come to find out that their personality and temperament is not a good match for you and your lifestyle. There are many websites and books that provide this information. Most reputable adoption centers will interview you and everyone in your household to ensure that you are ready for this commitment and that it will be a good fit.

So, where do you start when looking for your new pet, specifically for this article a dog or cat? There are so many pet stores and shelters to choose from. Most pet stores that are in the area are supplied with puppies from puppy mills. You can ask the pet store to show you the documentation about the origins and breeder of the puppies, and if they refuse, you should be concerned. Puppy mills are defined as breeding kennels that put an emphasis on profits above the safety and wellness of the animals (both the adult dogs and puppies), and many times they have horrible conditions for the animals. Puppy mills lack proper food, water, medication and shelter for the animals. It is important to send a message to these puppy mills that these conditions are unacceptable by refusing to purchase animals from these places. It is heartbreaking to hear some of the stories about these puppy mills and there are many organizations trying to get them shut down.

The best place to find your new pet is through an animal shelter, a rescue group, or a reputable breeder that you have screened in person. Here is a great website that provides a central database of available shelter animals. Also, you can search for local shelters and rescue groups in your area. A personal favorite is the Animal House Shelter in Huntley, IL, which is a no-kill animal shelter. Many shelters are looking for volunteers, whether on a short term or long term basis. Also, many are in need of foster homes for their animals, and this can be a great way to ‘try’ a new pet out to see if it is something you are ready to commit to.

Guest Post Written by Tammy Hufford

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Market Stats - Elk Grove Village

2010-11-09T05:24:00.000-08:00

It took some effort, but StartingPoint Realty is now able utilize a new software program (Agent Metrics) that works with MLS data. We'll be using it quite a bit in the StartingPoint Blog. For a test drive, we decided to try it out on a popular suburb, Elk Grove Village.

We're using all single family homes that have sold under $500,000 and that have been on the market (sold and unsold) for the past 12 months. The first graph will show us the trend in the amount of homes for sale (red) and the trend for the amount of homes sold (green):

What are the numbers telling us? The amount of homes on the market under $500,000 in Elk Grove Village is trending upwards at 5.8%, but the amount sold is decreasing by 8.9%. Now let's see what effect this is having on prices:

As you can see, single family homes prices that have sold under $500,000 are trending downward at a rate of 20%. August, September, and October of '09 were strong, and then the prices starting to go down with a small surge at the end of the tax credit period, but not enough to keep home prices up. A big reason for this decline are the bank owned properties. According to the program, bank owned homes are selling at prices 6% lower than normal resale prices and bank owned properties accounted for about 35% of the homes sold in Elk Grove Village during this period.

If you're looking in a particular area, keep on top of these trends and know this information going into negotiations. The more information you have, the better the argument you can prepare.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Chicago Park Profile - Winnemac Park

2010-11-02T05:03:00.000-07:00

A StartingPoint Realty favorite, Winnemac Park is located in the Lincoln Square / Ravenswood neighborhood. With over 40 acres, Winnemac Park includes land owned by both The Chicago Public School system and the Chicago Park District. There are three softball fields, a playground, a nature walk , fitness center, and - well you'll just have to check the rest out for yourself. From what we hear, they have an unbelievable 4th of July fireworks display.

Here are some other details about Winnemac Park and the surrounding area:

The park is bounded by Damen, Foster, Leavitt and Argyle.
Here are some Yelp reviews of Winnemac Park and here's the link to the Chicago Park District page for Winnemac Park
On October 27th, they have a 'Cauldrons and Campfire' event which is free to everyone. For more info, click here.

Real Estate statistics within 3/4's of a mile from the center of Winnemac Park. Time frame is six months prior to September 30th, 2010:

Condos and Townhomes under $350,000 - 110 sold, 142 active, 23 under contract, median sales price = $211,255
Single Family Homes under $450,000 - 10 sold, 15 active, 4 under contract, median sales price $295,550
Two to Four Flats under $450,000 - 8 sold, 12 active, 6 under contract, median sales price $225,000

Please note that the prices drop off considerably once you get west of Damen and North of Foster. This is primarily due to the distance to CTA stops.

"I'm an idealist. I don't know where I'm going, but I'm on my way." - Carl Sandburg

Commercial Space vs. Residential

2010-10-26T07:18:00.000-07:00

This is more for city condo buyers. If you are obtaining a conventional loan, please understand that Fannie Mae and Freddie Mac are clamping down on buildings that have combined commercial / residential space.

Why? With so many businesses going out of business, commercial spaces can stay vacant for long periods of time, thus having a drain on the homeowner's association. Please understand that the lenders are very concerned about the current and future health of the homeowner's association (and you should be as well). If the association starts running out of money, it’s the residential owners that have to pay the difference.

How do you know if this might be an issue? Take the total square footage of all residential units (including roof top decks, parking spaces) and commercial space (including basements). If the commercial space is 25% or more of the total square footage, it will be an issue. Before you get your heart set on it, please check with your lender.

"The older I grow, the less important the comma becomes. Let the reader catch his own breath." - Elizabeth Clarkson Zwart

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Winterizing Your Home

2010-10-19T11:42:00.000-07:00

For those of you looking to purchase in the next six months, pay close attention to whether the house you’re considering to purchase (if it’s vacant) has been winterized. Why? It gets cold here in Chicago, real cold. Houses weren’t built to be empty for long periods of time. What can happen? If there’s no heat (furnace breaks down, gas is shut off), the main issue is water in pipes. As water freezes, it expands. This expansion can cause leaks and pipes to completely burst.

How can you tell if a home has been winterized? Look for 'Home Has Been Winterized' stickers on the exterior as well as the interior of the home. Look for antifreeze in the toilets and masking tape over sinks. We’ve seen homes that were winterized, then de-winterized for an inspection and never winterized again. So look for hard evidence that the home is winterized. Here’s a link on how to winterize a home and it'll give you clues to look for when trying to determine if a home has been winterized.

"I get up every morning determined to both change the world and have one hell of a good time. Sometimes this makes planning my day difficult." - E. B. White

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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What Does "As Is" Mean?

2010-10-12T05:35:00.000-07:00

The best way to frame this answer is to utilize the word 'expectation'. Most real estate contracts have a home inspection clause in them (if it doesn't, don't sign it). It basically states that the buyer has a right to a home inspection, to be performed by a licensed home inspector, and if there are issues discovered during the inspection concerning major items of the real estate, the expectation is that the repair of these issues can be negotiated with the seller. If an agreement isn't reached, the buyer can cancel the contract. This makes it obvious that the home inspection is a crucial step in the home buying process.

There are some homes that are put on the market with an 'as-is' notation in the description. What this means is that the buyer can have a home inspection, but the expectation is that the seller will not fix or give the buyer money for any repairs. Who are the types of sellers that commonly use 'as-is' in their listings? Banks (foreclosures), short sellers, estate sales, or people that haven't done a lot of updating and just want to sell it quickly.

Have we seen normal sellers, without using 'as-is' in their listing, refuse to fix items found from a home inspection, or refuse to give money for repairs? Yes. Have we seen banks that have used 'as-is' in their listings agree to fix items or give money for repairs found from a home inspection? Yes. Both are not common occurrences, but they do happen.

So please remember, ALWAYS have a home inspection done - 'as is' or not. But even if it's 'as-is', still ask for the repairs to be made. The worst you're going to hear is 'no', but in this environment, you might get the other side to work with you.

"There are two motives for reading a book: one, that you enjoy it; the other, that you can boast about it." - Bertrand Russell

Bike Your Home Search

2010-10-05T05:29:00.000-07:00

Get out of the car and Bike Your Home Search. As promised, here’s more information on our new ‘Bike Your Home Search’ program. View the video below!

Here's the official press release:

Local Chicago Real Estate Agency Promotes 'Bike Your Home Search'

House hunting in Chicago usually requires somewhat of a tough skin to bear through the stop-and-go traffic and parking spot battles. But StartingPoint Realty, a real estate agency located just outside Chicago, IL that focuses on first time home buyers, is looking to take a different approach. They are encouraging home buyers to bike ride their way through the home search.

“Absolutely nothing good comes from sitting in traffic and burning through gas. I thought if we promoted bike riding between homes, it’s a win - win - win. We can get around faster, get a better feel for neighborhoods and local parks, and enjoy a workout without contributing to gas emissions," says StartingPoint Realty owner Ryan Gable.

Another incentive? “If a client spends at least two days with us, on a bike instead of in a car, we’ll give them a $250 gift card to their new local bike shop,” Gable says. “The response has been great among clients and local Chicago bike shops.”

This novel approach to house hunting makes perfect sense for the city-minded buyer. The city of Chicago has a national reputation as one of the best large cities in the United States for bicycle riding. They were even recently named as number 10 of the top 50 bicycle-riding cities by Bicycle magazine (Source: http://www.bicycling.com/news/advocacy/10-chicago-il). Chicago continues to embrace this title with the city plan named "Bike 2015 Plan" which recommends projects, programs and policies to encourage more Chicago residents to take advantage of this green-friendly mode of transportation.

StartingPoint Realty has devised a system where all the client needs is their bike, helmet, and water. Because most city homebuyers are focused on a specific area of the city when house and condo hunting, a leisurely bike ride from home to home is not a difficult task and proves much more convenient than driving. It also grants them the added benefit of a ground level look at the neighborhood.

“If there’s a park nearby, we can ride through instead of zooming by it. We provide the locks and we carry all the listing sheets, camera, and note pads in a backpack. The idea is to make it fun, not burdensome on the client,” says Gable.

Because StartingPoint Realty specializes in the first time homebuyer, they are continually looking for ways to speak to their customer base. Often working with a younger clientele, they understand how important it is to make the home buying process as simple and enjoyable as possible. “Seeing as we are the only agency in the Chicagoland area that focuses solely on the first time home buyer market, it’s easy for us to listen and implement new programs relating to our audience. With the environment being such a hot topic right now, this idea was a natural fit,” Gable says.

Founded in 2004, StartingPoint Realty is a Chicagoland real estate team dedicated to assisting and educating the first time homebuyer. StartingPoint Realty's passion is to share their knowledge of the steps that each first time buyer must take; therefore their team hosts first time home buying seminars throughout Chicago and the surrounding suburbs. For more information please call 847-348-1154, email at RyanGable@StartingPointRealty.com , or visit their website at www.StartingPointRealty.com.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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How To Avoid Moving Scams

2010-09-28T06:04:00.000-07:00

There are moving companies out there looking to rip you off. But there are many out there that do it right. Here’s a great link on how to protect yourself from a moving company scam.

"And remember, no matter where you go, there you are." - Earl Mac Rauch

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Harris Going FHA

2010-09-21T06:52:00.000-07:00

Harris Bank has officially announced that they are now handling FHA loans. We’ve been in contact with several Harris loan officers and all of them are very excited to offer this loan program. Here’s a link to the portion of their site that talks about FHA loans.

"Science is organized knowledge. Wisdom is organized life." - Immanuel Kant

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Answer to the Question

2010-09-14T05:34:00.000-07:00

What is a short sale? What is involved with buying a short sale?

Four years ago, short sales were a rarity. Today, in some neighborhoods, they make up the majority of what is on the market. What has changed in four years? There's been a huge learning curve, but at the very least, we've learned what questions to ask and which answers we need to hear. There is one constant - 95% of short sales are difficult, but you should know what short sales are and what's involved. You can then decide whether they are good or bad for your particular situation. There are strong positives for the short sale buyer, but often, the negatives outweigh those upsides. So in defining short sales, let’s start with these bullet points:

The home owner owes more to the bank than what the home is worth.
Instead of letting the bank take over the home (foreclosure), the home owner will try and sell it as a ‘short sale’, the ‘short’ meaning the bank (if the bank agrees) will be receiving less than what is owed.
The homeowner still owns the home during the short sale process, but the bank makes the final decision on the sale terms.

Ok, so now you know the basics. Here’s the ‘why’:

Usually a seller attempts a short sale because the home owner has fallen on bad times, usually the loss of a job.
If the homeowner lets the home go into foreclosure (bank takes over home from the seller), the hit against their credit report is much worse than if they sold it as a short sale.
Banks don’t want to take over the property, it's very expensive for a bank to take possession of a home.

Sounds like it could be a good deal for a home buyer, doesn't it? Quite often, the answer is 'yes', but there are several black holes that can happen along the way. In order to explain, we'll tell you a story. Debra Homeowner owns 123 First Home Dr. and 1st National Bank is the lender who still has a claim (lien) on 123 First Home Dr. because Debra used 1st National Bank as her lender to buy the home and she still owes a balance to 1st National Bank. Debra needs to sell the home and her and her real estate agent believe the home is worth $200,000 if it was a normal sale, $150,000 as a short sale. The problem is Debra owes $250,000 to 1st National and she just got laid off. She decides to sell it as a short sale and they list the house at $160,000. Jake Homebuyer comes along and offers $150,000. Debra and her agent thinks the offer is solid enough for the bank to accept it, so Debra signs the contract at $150,000. The contract goes to the bank and now they wait for 1st National to (a) accept the offer, (b) reject the offer, (c) come back with a counter offer. The wait time for this can be anywhere from 2 - 9 months, that's not a typo.

The above paragraph is about as simple as it gets. Remember, the bank doesn't want to take over the property - too expensive. After a contract is submitted, most banks pay a real estate broker (called a BPO, Broker Priced Opinion) to appraise the home and if it's close, they usually take it. But not always, and again, beware of the length of time. Here are SOME blackholes you might find during the short sale process (all of which have happened in the past 12 months):

Too many liens on the property, can't get everyone to agree - needs to go into foreclosure. Waited 6 months for this answer.
Person handling the file at the bank quits her job, now the file is with someone who now has 2X the amount of short sale files that they had before and they have to train the new person when that person is hired.
BPO is bad, broker is out of area. Bank wants too much money for the house. Waited 5 months for this information.
Condo associations. How much is owed and what are they willing to accept? Buyer paid out of pocket for past due assessments (they didn't have to, they could have walked away, but the deal was still good enough).
Everything goes smooth and the day of the closing during the walk-through all the appliances are gone - the sellers stole them out of the house.

These are just our stories from the past year, you'll get several more stories from others. Some go without any issues, most do not. Some of those problems can be avoided if your agent knows what to look for, but most problems arise where it's out of anyone's control or foresight. In the end, if you do get one, you can get a great deal. Just be prepared to wait and be frustrated.
"Reason has always existed, but not always in a reasonable form." - Herbert Rappaport

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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StartingPoint Realty on House Hunters

2010-09-07T05:43:00.000-07:00

Filmed in 2009 and broadcast in February 2010, our national TV debut. The clients, Michelle and Josh, were as cool as it gets so it made the whole experience fun, sometimes too much fun (we heard 'cut' quite a bit from all the laughing). We had to split the video into two parts as it was too long for YouTube. Michelle and Josh were looking in Chicago, within the neighborhoods of Lakeview and Roscoe Village. For those thinking about single family vs. a 2-4 flat, it actually contains useful information and shows the positives and negatives to each scenario.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Current Interest Rates

2010-08-31T14:12:00.001-07:00

From Wells Fargo ,as of 8/19/10:

* 30 Year FHA - 4.25%
* 30 Year Conventional - 4.25% (must meet top rated guidelines)
* 5/1 ARM FHA - 3.125%
* 5/1 ARM Conventional - 3.125%

As alsways these rates change on a daily, almost hourly basis. Are these rates the lowest in US history? Yes.

"He attacked everything in life with a mix of extraordinary genius and naive incompetence, and it was often difficult to tell which was which." - Douglas Adams

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Affordability Calculator - CNN Money

2010-08-24T13:49:00.000-07:00

The question does come up quite a bit, 'How much of a housing payment can I afford?' Our answer is one that centers around your particular lifestyle. Do you eat steak every night for dinner? Do you take several vacations a year? Are you having a child soon and expecting to utilize a day care center? There are several other factors to consider, but we found this great calculator on CNN Money's website as a way to at least see how the banks interpret what it is you can afford: click here.

We've seen people with housing payments at 20% of their gross income and we've seen people push that upper limit. Take an honest look at what it is you like to do and how you spend your money. This is your first home, don't go broke - find the right investment.

"It's a rare person who wants to hear what he doesn't want to hear." - Dick Cavett

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Movie Review - Crazy Heart

2010-08-17T11:36:00.000-07:00

I wrote a review of the movie 'Black Snake Moan' a couple years back and I remember being so nervous about publishing the review. It was a movie about the blues, but not a documentary or anything like that. Rather it was a film that dealt with heartache, personal conflict, and healing - but a had a slight comic twist to it. Blues music was the theme of the movie and it was everywhere. It was also a tad raunchy, that's why I was a little hesitant to post it on this blog. But I really liked the movie and rarely does a film tell a story that stays true to the music it portrays. In my opinion, 'Crazy Heart' is also about the blues. It's more country music than blues, but with T. Bone Burnett doing the music on this film, you're getting true country music which to me, always carries a hint of the blues in it. There's even a scene where Jean Craddock (Maggie Gyllenhall), a reporter for the local paper who is enamored with the main character, Bad Blake (Jeff Bridges), asks Blake who his influences are. Son House is one of the names mentioned, and that name is not a casual one. Son House was the blues. But since Black Snake Moan, I haven't seen a good movie portray the genre of the music it's trying to reflect. Most fail, terribly. 'Crazy Heart' gets it right, on all levels.

The movie revolves around Bad Blake. A once famous country star who now plays in bowling alleys and small bars. He's in his upper 50's, he's been married a few times, he has a son but doesn't know him, and he's a drunk. He's floundering around the country playing gigs that basically fund his alcohol addiction. He sings about emotion, but you sense he only has one - frustration. However, Jeff Bridges portraying this frustration is different than how any other actor would have shown it. Bridges, who won the Academy Award for Best Actor in this film, cracks a genuine smile when getting hit on at a bar by a local lady, or at certain moments on the small stage - but it's more of a subtle (and at times, more blatant) showing that he's not happy with what's going on. Another actor might have choked it too hard, making it too depressing to watch - but overacting is not something that Bridges does, and thankfully he handles Blake as naturally as someone possible can.

The spark in the movie is Craddock. She's a fan, and although 20 years younger than Blake, she knows everything about him. A relationship begins and this is where Blake starts to face his issues. But with his attempts at change come some casualties - one would look back though and say it was necessary. Another key to the movie, in my opinion, was Wayne - played by Robert Duvall. Wayne does not have a lot of time on the screen, but he's Blake's only true friend. If there's a supporting actor to have, Robert Duvall is it. He's is so good, he makes everyone in the scene better. There's a scene where Wayne and Blake go fishing. It's an important scene, it lasted about four minutes, but everyone I've talked to that's seen this movie agrees - that scene needed to be about two hours longer. Actors of that caliber alone an a fishing boat talking about life, doesn't get much better than that.

At first I was reluctant to see it because I'm not into movies where the lead character is throwing up all the time from being drunk or strung out because he's on cocaine. It's not like that, especially because of Bridges performance. He does dumb things, but don't we all? It's the willingness to change and face our issues that some of us don't do - and if Bad Blake can do it, why can't we? Some have complained about the ending, but not me. Pay attention to what he gets, and what he doesn't - and think about which he'd rather have. After all, it's the blues. Just watch the first minute of Black Snake Moan where there's a clip of Son House talking about what the blues truly is. Crazy Heart - Four out of four stars
Written by Ryan Gable

"If we don't change direction soon, we'll end up where we're going." - Professor Irwin Corey

Ryan Gable
Broker/CEO Starting Point Realty
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Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Chicago First Time Home Buyer News - Possible Appraisal Issues Due To Slow Market

2010-08-10T06:00:00.000-07:00

As more first time home buyers enter the market after the $8,000 tax credit 'hangover', buyers need to be aware of possible appraisal issues that can arise due to the slow market. Remember, residential real estate appraisals are highly subjective, there is no exact science to them. Take one property and give it to three appraisers (or real estate agents) and you'll get three different results.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Featured Listing - 2229 N Kimball, Chicago

2010-08-03T08:17:00.000-07:00

2229 N. Kimball Street Unit 1E
Chicago, IL 60647

Set back from Kimball, this freshly painted two bedroom condo features exposed brick, boasts plenty of sunlight and offers an in-unit washer dryer. An open floor plan from kitchen to living room is ideal for kitchen conversation and entertaining guests. There is plenty of cabinet space to keep you organized and a new stove to inspire home cooked meals. Added bonuses include lots of common storage in the basement and easy rental parking across the alley. This intimate, well run building is just what you are looking for. Come see today!

Printable Brochure | Property Website
Listing Information Sheet | Additional Features

$195,900
MLS# 07514615
Bedrooms: 2
Bathrooms: 1

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Free First Home Buyer Seminars

2010-07-29T07:41:00.000-07:00

We are always joined by a qualified mortgage professional. If you would like to attend one of our free home buyer seminars, please click on the location nearest you to view our schedule and RSVP.

"I don't know if you remember me, but my husband and I went to a seminar you gave at Goose Island earlier in the summer. Not long after the training, we found out that I had received a job offer out in Phoenix, AZ. Anyways, long story short, we just closed on a house out there this week and a lot of the thanks goes to you and that seminar for making us aware of what we were getting ourselves into! I've enclosed a picture of the house." - Past Seminar Attendee, 2009

Some of the subjects covered:

- Where do I start in this process?
- Foreclosures / Short Sales
- Roles of the Lender/Mortgage Broker
- FHA / Conventional Loan Guidelines
- Credit
- Pre-Approval
- Roles of the Real Estate Agent
- Searching for Properties
- Contracts
- Negotiation
- Closing

Here are some questions that were asked during a home buyers seminar last month:

- Why would I NOT go with an FHA loan?
- What does a discount agent do exactly?
- Will the seller pay closing costs?
- Can I get a loan without is being sold in the secondary market?
- After closing, when can I move in?
- What does MLS stand for?
- Can I fire my Realtor?
- What can I do to get my credit score higher?
- Can we still get a home if one of us has great credit and the other has not so great credit?
- Where do I start in the negotiation process?
- Does earnest money show the seller how serious the buyer is?

If you'd like answers to any of these questions, or any others that you might have on your own, please reply to this newsletter. Thanks!

"You don't stop laughing because you grow old. You grow old because you stop laughing." - Michael Pritchard

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Awesome Customer

2010-07-27T13:26:00.000-07:00

"We began our relationship with StartingPoint Realty last year when we attended one of their first time homebuyer seminars. My fiance and I had absolutely no clue where to begin when it came to buying a home. The seminar was very informative and we learned SO much about the process. At the seminar we had mentioned then that we were looking to buy the following spring (2010). Tammy remembered this and at the beginning of the year she contacted us and voluntarily offered to begin searches for us so that we could start. From that point on, Tammy was always there for us, answering all our questions, taking us all over (we had a wide home search in the geographical sense), and guiding us through each and every step. This was so helpful because we had never done anything like it before, so naturally, we had a lot of questions and needed things explained, and Tammy was great at that. We closed on our house last week, and we couldn't be happier! We've already recommended StartingPoint Realty to our friends, and have no qualms about it. You guys are great and I know you would take care of them like you took care of us."

- Lindsay and Jeff

"Sanity is a madness put to good use." - George Santayana

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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FHA Loans Are Assumable

2010-07-22T14:29:00.000-07:00

When interest rates hit an all-time low, we always bring up the lesser known fact about FHA loans that they are assumable. What does this mean?

You buy a home today with an FHA loan carrying an interest rate of 4.5%. Six years from now, let's assume the economy is humming along and interest rates are around 7%. You want to sell your home and you find a smart real estate agent. They will market your home to show that the buyer, if they qualify, can assume your loan with the current balance and 4.5% interest rate. Of course, they'd have to pay you the difference between your balance and the market value of your home (cash, 2nd loan), but that's their problem. From the section above, you see the difference between .75% in an interest rate. The difference in 3.5% in an interest rate becomes several hundred dollars a month. You will have a marketing advantage because the FHA rate and loan is assumable. Just something to consider.

"Opportunity is missed by most people because it is dressed in overalls and looks like work." - Thomas A. Edison

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Lowest Interest Rates in History - So What?

2010-07-20T09:34:00.000-07:00

Interest rates rarely play into the first time home buyer's decision to make the leap into purchasing a home. Usually they decide to do it, and the interest rate is really just a factor into how much of a home they can buy. But with rates hitting an all time low recently, this needs to be looked at more closely. Before the credit, interest rates were right around 5.25%. As of July 1st, 2010, the FHA rate on a 30 year fixed is at 4.5%. Some were quoting as low as 4.25%.

What is the effect of a .75% interest rate decrease? Using a mortgage calculator, you can find out.

On a $300,000 loan at 5.25%, your monthly payment for principal and interest only equals $1,656.00 a month. At 4.5%, the payment is $1,520.00 a month. Over the course of five years, that's $8,160. So for those of you upset about missing the tax credit and if you're buying soon, you're could be getting the next best thing.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Market Stats

2010-07-15T11:45:00.000-07:00

The market is slow right now, especially considering it's summer time. This mainly has to do with the $8,000 tax credit 'hangover' effect. So we wanted to pull some numbers and see what's really going on. In the city and suburbs, we pulled all single family and condo / townhomes that are available for sale (under $500,000 in the city, under $400,000 in the suburbs) that have an accepted contract on it (A/I) and that are pending (Pend), which means that all the contingencies of the contract have been met, it’s just waiting to close. So both 'A/I' and 'Pend' mean that the home has an accepted offer and it's off the market. We wanted to see the activity AFTER the $8,000 tax credit effect, so we used a cutoff date of 5/7/10 in our analysis (it sometimes takes up to a week for agents to change status in the MLS).

Lincoln Square is one of the more popular areas in the city. Out of 255 available homes, 37 have gone under contract since the tax credit. That’s 14.5%, which is not bad. But when you look at Hyde Park, you have 220 total homes with only 18 going under contract since the credit. That’s 8.2%.

Carol Stream has 311 total homes for sale, only 26 of which have gone under contract since the credit, 8.4%. Naperville, always known as a popular suburb has a total of 827 homes for sale under $400,000 and 72 are under contract, 8.7%. 12 of which are short sales.

528 homes for sale in Crystal Lake, 63 of which went under contract since the credit BUT 23 of those are short sales. In Hoffman Estates, 285 homes are for sale under $400,000 and 48 have gone under contract since May 7th, 2010. 11 of those 48 homes are short sales.

What do the numbers tell us? For one thing, the question would be 'in a normal market, what should the numbers be?' The answer? Probably closer to double these numbers. Would we expect Carol Stream, for instance, to have around 15% under contract this time of year - yes. The exception would be Lincoln Square. Getting into a 30% range would be excessive, but getting into the lower 20%'s wouldn't be too far off. Remember that in the city, especially the popular neighborhoods, you have a higher number of investors that you don't have in the suburbs, so the demand is always a little higher.

Basically, The numbers are telling us it's slow out there. However, signs show people are starting to back out there, and just like any other hangover, it doesn't last too long. If you're looking soon, use these figures to your advantage when negotiating.

"Nostalgia isn't what it used to be." - Pierre Beaumarchais

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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$8,000 Tax Credit Extended Through September 30th, 2010

2010-07-14T06:59:00.000-07:00

Great news for those of you that have a signed contract accepted prior to April 30th, 2010, but have not yet closed. You now have until September 30th, 2010 to close on your home and if you qualify, you can get your $8,000 check from the government. For more info, please click here.

"Reading is to the mind what exercise is to the body." - Sir Richard Steele

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Is homeownership for me?

2010-07-08T17:01:00.000-07:00

Many would expect our answer to this question to be a resounding ‘YES’, given that we are real estate agents and we only get paid when folks buy homes. However, those of you that know us, know that we are in business for those that want to buy a home AND should buy a home.

The answer is going to be followed up with several other questions (there could be others, but let's keep it simple):

What is your job situation?
What is your lifestyle?
What is your alternative to buying? Living at home or renting?

Recent example: We had a recent college grad wanting to buy a condo in order to get the tax credit. There was much discussion about whether the young man, 22 years old, should bear the responsibility of owning a condo. Where was his new job going to take him? Would he even like it at his new job? Regarding his lifestyle, he didn’t even have one yet. Look at yourself and your personality - Are you someone on the move? Someone who doesn’t like to be tied down? Are you at a stable point in your life?

The alternative to buying is the big one. You have to live somewhere, and usually there's a cost associated with that scenario, but not always. However, living with your parents can have it's limits as well. As for our college grad, he decided to rent for a year, and that was the right decision. Living with parents and paying rent has it's place in life. However, paying $1800 a month in rent for more than a year gets old as well. There are stages in our life where ‘growing up’ and ‘figuring it out’ are more important than buying a home, even when it makes financial sense to buy a place.

We were reading an article the other day about how a couple in New Hampshire was having buyer’s remorse after their home purchase last year. Their home? A five bedroom, four bath, 3,000 square foot home with a finished basement. We discussed this situation at StartingPoint. Do they really need all that space? As Americans, why do we constantly push for ‘bigger and better’. If we don’t make $500,000 a year, why can’t we buy a car or a home that fits the basic needs? We wanted to ask the family if it was the ACT of the purchase (which was the intent of the article) or the AMOUNT of the purchase that had them 2nd guessing themselves. Our money was on the latter and this is why we have in depth budgetary discussions with everyone that talks to us. When you decide to buy your home, stay within your limits. Be smart and plan it out.

"Reason has always existed, but not always in a reasonable form." - Karl Marx

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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2010-07-06T06:55:00.000-07:00

We’re giving away two three-day passes to Lollapoolza this year. What do you need to do to enter? Easy - If you are not already a fan of the StartingPoint Realty’s Facebook page, become a fan. Then, all you need to do is post on our wall the band or artist you're most excited to see at Lollapalooza, and you're entered. It's that simple, so be cool and get in the game. The winner will be selected in a drawing to be held on July 8th. We will announce the winner on our fan page that day!

"Delusions of grandeur make me feel a lot better about myself." - Jane Wagner

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Music Ideas For Your Summer

2010-06-29T10:48:00.000-07:00

Dead Weather (Sea of Cowards), Black Keys (Brothers), Black Crowes (Before the Frost), Heartless Bastards

Black Crowes (Before The Frost) - Yes, this CD did come out last year, but I just picked it up. I compare this CD and The Black Crowes to the current Chicago Blackhawks team. You fell out of love with them for awhile, confused by what they were doing and their lack of quality material. But now, they’ve come back in full force. I was a huge Black Crowes fan, I’ve seen them several times and to this day I stand behind my statement that 'Southern Harmony and Music Companion' is one of the best CD’s of the 1990’s. But after 'Amorica', each CD lost me. 15 years later, they release what I think is one of their best, ‘Before The Frost’. Songs like 'Good Morning Captain', 'Been A Long Time', and 'I Ain't Hiding' are among the best. The CD was recorded live over five days in front of a live audience in Levon Helm's studio in Woodstock, NY. There's also a downloadable set of tracks titled 'After The Freeze', which is next on my 'to listen to' list. Check it out, this is quality music.

Black Keys (Brothers) - Good enough? Yes. Great? No. I’m not going to lie, I’ve listened to this one three times hoping for a breakthrough, and I just can’t find it. Everyone seems to really to like it, but I guess I was looking for the raw grind of the pre - ‘Rubber Factory’ CD’s. Just like Kings of Leon, where the first two CD’s were pure rock and roll with their last making it on the radio, Grammy’s, and even a B-96 remix - I feel this CD, although not as poppy as the Kings of Leon’s latest, might be sending the Black Keys in the same direction. Great for them, awesome for the large listening audience as a whole, not so good for me. However, songs like ‘Sinister Kid’ and ‘She’s Long Gone’ still compel me to give it a thumbs up, I just wish there was more of it.

The Dead Weather (Sea of Cowards) - True story, I’m driving with the third song of the CD playing (The Difference Between Us), and I started to laugh. I then turned the volume way up. I laughed because this music is as twisted and as dark as it gets. Most of you will laugh then turn it off, not even making it out of the first song, rightfully called ‘Blue Blood Blues’. Some of you will absolutely love it - there will be very few in between. For those that don’t know, Jack White is the drummer of this band and his influence is all over it. His interpretation of the blues takes a left turn at Spookyville on this one, but I think it’s top notch. Much like Prince’s albums, some of the songs are throwaways, but you know they had to be explored to get to the great stuff. Listen first to the song ‘No Horse’ and if that one doesn’t do it for you, don’t buy it. This is not your sit on the porch and drink a beer music like the first two CD’s I reviewed are. This is a ‘I need to get pumped up for a massive mountain bike ride’ - or ‘I need to psych myself up to break up with my boyfriend’ - or ‘I’m need to prepare to enter the gates of HELL’ - CD.

The Heartless Bastards - And if you want a sure thing, buy anything from The Heartless Bastards. I'm addicted to this band and they cover a wide range from fast garage rock to mid tempo hooks to slow but compelling songs. There's something there for everyone. The band centers around their lead singer woman, Erika Wennerstrom, who can rock out while making you cry at the same time. She reminds me a lot of Chrissie Hynde from The Pretenders, and I'm positive I'm not the first to make that comparison. I do recommend starting with their first CD, 'Stairs and Elevators'. There are only two more after that, but this one will get it started for you. Be careful, they are addictive.

Hope to see some of you at the Clapton Crossroads Festival in June!! If you're going, let me know. I'm buying cocktails for The Elbowroom readers.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Featured Listing - 2229 N Kimball, Chicago

2010-06-24T13:52:00.000-07:00

2229 N. Kimball Street Unit 1E
Chicago, IL 60647

Printable Brochure | Property Website
Listing Information Sheet | Additional Features

$195,900
MLS# 07514615
Bedrooms: 2
Bathrooms: 1

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Free First Home Buyer Seminars

2010-06-22T14:53:00.000-07:00

We are always joined by a qualified mortgage professional. If you would like to attend one of our free home buyer seminars, please click on the location nearest you to view our schedule and RSVP.

"I don't know if you remember me, but my husband and I went to a seminar you gave at Goose Island earlier in the summer. Not long after the training, we found out that I had received a job offer out in Phoenix, AZ. Anyways, long story short, we just closed on a house out there this week and a lot of the thanks goes to you and that seminar for making us aware of what we were getting ourselves into! I've enclosed a picture of the house." - Past Seminar Attendee, 2009

Some of the subjects covered:

- Where do I start in this process?
- Foreclosures / Short Sales
- Roles of the Lender/Mortgage Broker
- FHA / Conventional Loan Guidelines
- Credit
- Pre-Approval
- Roles of the Real Estate Agent
- Searching for Properties
- Contracts
- Negotiation
- Closing

Here are some questions that were asked during a home buyers seminar last month:

- Why would I NOT go with an FHA loan?
- What does the attorney do for me?
- Will the seller pay closing costs?
- Who makes the decisions in a condo association?
- Can I close without an attorney?
- What does MLS stand for?
- Can I fire my Realtor?
- What can I do to get my credit score higher?
- Can we still get a home if one of us has great credit and the other has not so great credit?
- Where do I start in the negotiation process?
- Does earnest money show the seller how serious the buyer is?

If you'd like answers to any of these questions, or any others that you might have on your own, please reply to this newsletter. Thanks!

"Traditions are group efforts to keep the unexpected from happening." - Barbara Tober

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Awesome Customer - Our 100th!!

2010-06-17T07:07:00.000-07:00

Here's our press release we just sent out the other day about Hannah's and StartingPoint's important day:

StartingPoint Realty Helps Their 100th Client Achieve Home Ownership

Firm That Focuses on Helping First-Time Homebuyers Reaches Important Milestone

In mid May of 2010, Hannah McMinn closed on a condo in the Lakeview neighborhood of Chicago, IL. It was a special occasion not only for McMinn, but for StartingPoint Realty, Inc., the real estate agency that helped her find her first home. Hannah was the firm’s 100th client. Of those 100 clients, 95 were first-time home buyers.

“I don’t think any one firm in the country is as dedicated as we are to first-time home buyers,“ says Ryan Gable, owner of StartingPoint Realty, Inc.

Believe it or not, StartingPoint is Ryan’s first experience with real estate. His previous career was in logistics. “I just had this idea of how cool it would be to head a company that focused on such a monumental event in people’s lives. It instantly became my passion.”

With a little inspiration and drive, Gable got his broker’s license, developed a business plan and a system for shepherding buyers through the process. “I leaned on a lot of people for help those first couple of years. It was on the job training and that’s why I couldn’t hire any agents at first - I needed to learn the ins and outs myself.”

What did McMinn think of her experience with StartingPoint Realty? “They were more concerned about me feeling comfortable and being educated on the process than just running out and finding a place. Ryan and his team actually made the process enjoyable and stress free.”

Today, StartingPoint Realty has a total of four agents and expects to hire two more by the end of 2010. Unlike other real estate firms, it’s quality, not quantity when it comes to hiring agents. Gable is adamant about waiting as long as it takes to build the right team.

For the current tightly-knit staff, there’s a consistent theme to everything they do. For instance, they believe in a complete immersion into the buying process for all potential buyers. From an informative website to weekly First Time Home Buying Seminars, the company is all about educating those new to buying a home, whether or not potential buyers choose to work with StartingPoint.

Wells Fargo loan officer James Madejczyk often jokes with Ryan, telling him that they operate like a non-profit agency. “It’s not about the commission for Ryan and his agents - it’s about the client, and that’s refreshing,” says Madejczyk.

What’s the statistic that Gable is most proud of? "To our knowledge not one of StartingPoint’s past buyer clients has gone into foreclosure or had to sell short. We have a reputation of talking more people out of buying rather than talking them into it, especially when we know they aren’t ready just yet,” says Gable.

"Love is the difficult realization that something other than oneself is real." - Iris Murdoch

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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HO-6 Insurance - Otherwise Known as Condo Insurance

2010-06-15T06:18:00.000-07:00

If you’re buying a condo, the condo association will have an insurance policy covering damage to the building and this cost will be included in your monthly assessments. If you’re purchasing a single family home or PUD (true townhome ownership), you’ll have to buy homeowner’s insurance that will cover the structure of the home. However, when you purchase a condo, please understand that you are responsible for what is inside your walls. You need insurance for the those fancy cabinets, toilets, flooring, as well as your personal items. Your lender will require this type of insurance and it’s called an HO-6 policy. It’s not terribly expensive, unless you're covering extraordinary personal items ($100,000 stereo, for instance). One of our recent clients is paying $15 a month for hers. For those of you renting, you might already have renters insurance, this policy is similar to that.

This is a great link explaining what exactly what an HO-6 policy is: click here.

The special assessment coverage is new to us and it’s something we are investigating ourselves.

"The trouble with jogging is that, by the time you realize you're not in shape for it, it's too far to walk back." - Franklin P. Jones

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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How Much Does New Carpeting Cost?

2010-06-10T07:59:00.000-07:00

We see it all the time - a client finds the perfect place but the countertops are from 1964. "How much would it cost to put in granite countertops?"

Here's a site that we found that gives you ESTIMATIONS on how much it is to replace a water heater, furnace, flooring, windows, etc.: click here.

We really like that they include comments from those that actual replaced the categorized items.

"I am always doing that which I can not do, in order that I may learn how to do it." - Pablo Picasso

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Wells Fargo Rates

2010-06-08T13:06:00.000-07:00

Not many lenders post their real time rates that include FHA rates, but Wells Fargo does: click here.

Bookmark this link for those of you looking down the road a bit. As your time to buy becomes closer, this is a good reference page for you to know what the current interest rate will be and it’ll be helpful when you’re negotiating with other lenders. By the way, mortgage rates are at an all-time low at the moment.

"Comedy is simply a funny way of being serious." - Peter Ustinov

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Costs Needed Before Your Closing

2010-06-03T13:32:00.000-07:00

Another topic covered before in The StartingPoint Blog, buy since we’re talking about closings and because fees do change, we thought we’d talk about it again.

The money you’ll need before your closing date will consist of:

Earnest Money (Varies, budget $1,000 - $5,000, could be higher depending on price range and situation)
Home Inspection ($300 - $600)
Deposit to Lender - Often used for your appraisal ($300 - $500)
Prepayment of your HomeOwner’s Insurance / HO-6 Insurance ($200 - $900)
Survey (only if you’re buying a foreclosed single family home or true townhome) ($400 - $600)

For definition of earnest money, click here and here (you'll have to scroll down and find the section). Just remember that the earnest money is credited back to you at closing so it's not a fee like the other ones are. The cost of the home inspection varies depending on the size of the home and whether it's a single family home or condo. The appraisal is always required if you're obtaining financing. Homeowner's / HO-6 insurance is all dependent on whether you're buying a single family home (more expensive) or a condo (HO-6 insurance, much cheaper). If you're buying a foreclosed home and if it's a single family or true townhome, the bank will not provide you with a survey of the property. Your lender might or might not require one. Nevertheless, we always recommend you purchase one before closing and have your attorney look at it before closing. The last thing you want is to purchase a home with encroachments on your property or the several other negative factors that a survey can discover.

"It is not necessary to understand things in order to argue about them." - Pierre Beaumarchais

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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What happens at the 'Closing'? What is it?

2010-06-01T06:19:00.000-07:00

We answered this one a few years ago in The Elbowroom, but it’s always a popular subject. In Illinois, real estate transactions finalize at what’s called a ‘table closing’. This means that everything (money, deed, required paperwork, signatures, etc.) is literally brought to an agreed location (title company) and possession of the property is transferred from seller to buyer. Don’t worry, your lawyer, your Realtor, and your loan officer (not always, but the good loan officers go to the closings) will be there to make sure everything goes smoothly. More than likely, the seller will not be there, but their attorney will be. The other player will be the ‘closer’, the individual who works for the title company and makes sure everything is signed and the money goes where it should. So what is required of you, the buyer? Let’s talk about the concept of the title company first.

A title company performs a couple of different functions. Number one, they run a title search of your home and insure that there are no liens (other than the seller's mortgage) against the property. Let’s say you buy property that the previous owner upgraded (granite countertops, flooring, patio, etc.). If the contractor that performed this work never received full payment for the work that was done, they can put a mechanic’s lien on that property. If there is such a lien, it’s the title company’s responsibility to find it and make sure the issue is resolved prior to closing. If for some reason the title company does not find the lien prior to the closing and the counter top installer knocks on your door, you would call the title company where you closed and file a claim. This is not free; you of course pay a portion of this ‘title insurance’ at closing.

The second main function that the title company performs is the utilization of their physical location for the closing and to act as a financial ‘middle man’. It is easier to understand if you think of a title company as a bank. The majority of the time spent at the closing will be your attorney describing the mortgage documents to you and you signing those documents. This should take about 45 - 60 minutes. You’ll be signing a lot of papers. After that is done, the title company will receive money from your lender and the money you brought it in and disburse those funds to all involved in the transaction (seller, seller’s bank, attorneys, State of Illinois, county, city, etc.). This could take awhile, or as little as 15 minutes. Most closings are done in about an hour and a half, but some take a lot longer so we always recommend to people to take the day off. After the checks are cut, you are handed the keys and the home is yours!! So remember, the day you close, unless negotiated differently, is the day you take possession.

For more information on title companies, you can check out Chicago Title and First American Title's websites.

"A man's silence is wonderful to listen to." - Thomas Hardy

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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StartingPoint Realty and Chicago Public School System

2010-05-27T08:33:00.000-07:00

We are very happy to announce that the Chicago Public School system has selected StartingPoint Realty as one of their referral partners. We were recently added to their website for all CPS teachers and CPS employees to utilize. Click here to check it out.

"I'm an idealist. I don't know where I'm going, but I'm on my way." - Carl Sandburg

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Movie Review - Brothers

2010-05-25T15:20:00.000-07:00

Let me first point out that I understand I might not be the best movie reviewer. I picked 'Avatar' to win best picture, and that didn’t happen. Instead it was ‘The Hurt Locker’. I didn’t get that movie. It was good, but I could name ten movies in 2009 that I thought were better, and given the similar subject matter - 'Brothers' was a much better movie.

'Brothers' is about a military family dealing with the effects of modern day war. Tobey Maguire plays the main character, Sam Cahill. Natalie Portman plays Sam's wife, Grace, and Jake Gyllenhaal plays the role of Tommy, Sam's troublemaker brother. Sam is the Marine, a captain, being sent back to Afghanistan. Sam and Grace have two children and live in a modest home, but you quickly realize that this is a modest family. Their values lie in each other and their country, and you see before Sam is sent to war that he's a great father and attentive husband. Tommy on the other hand just got out of jail. It becomes clear that Grace doesn't like Tommy, nor does his father Hank Cahill, an ex-Marine himself played brilliantly by Sam Shepard. Hank loves Sam, he's the model son. While Tommy seems like the son that defied his father, probably expressing himself obnoxiously or with violence. I was reminded of the movie 'Stand By Me', how John Cusack's character was so blatantly favored over the younger brother. As I write this, I suddenly realize that there are many similarities between 'Brothers' and 'Stand By Me', not so much in plot, but in how both movies move from dark sides to lighter spots and you feel like you're sometimes watching two different films.

I think most people know that Sam is believed to have died in Afghanistan. Grace is devastated, but she carries on almost like she knew it was always a possibility. I think most wives with two children and whom are in love with their husbands would fall into a depression upon learning their husband suddenly died. But this movie, and Portman's performance, made me realize that a war time Marine's wife thinks about this scenario everyday and maybe subconsciously prepares for it, because she has to. Here's where we see Tommy enter the picture, at least as a human being and not a troubled loaner. He takes the kids skating, helps around the house, he brings some normalcy back to the home. This is where the movie goes from one extreme to the other. We see what's really happening to Sam, which is mental and physical degradation. Then you see his family start making steps to repair and moving on without Sam. Where does Tommy end up in all of this once Sam comes back? That you'll have to see for yourself. It becomes sad and tense, but I didn't feel the need to commit suicide afterwards. I can say I have new found respect for all the actors involved.

There's a great scene that involves Hank, Sam's father, as he tries to help (as best he can) his son deal with home life after the tragic events witnessed, or performed during war. Hank's been there, he was a Marine in Vietnam. In this particular scene, Hank tells his son that if he ever wants to talk about what happened, he'd be glad to discuss it. But when you see how Sam Shepard delivers those lines, you see a father that wants to help his son, and makes the offer, but really doesn't want to talk about it. And maybe it's more that he can't talk about it. He's had his own battles with life after Vietnam. It's amazing how in two or three lines, we suddenly discover a character's pain and what he's been fighting most of his life. But when it's done in such a subtle way, that's masterful.

Keep an eye on one of the daughters, a young actress named Bailee Madison. You will see her name down the road, she was that good. I hope that prediction works out better than the 'Avatar' one.

Written by - RG
"Don't worry about people stealing an idea. If it's original, you will have to ram it down their throats." - Howard Aiken

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Featured Listing

2010-05-20T15:14:00.000-07:00

1506 Seville Court C2
Wheeling, IL 60090

$218,000
MLS# 07425906
Bedrooms: 2
Bathrooms: 2

Welcome home to Arlington Club Community. Everything has been done for you, just move in! This alluring two bedroom two bathroom coach home has much to offer, and is FHA approved. Spend chilly nights under a vaulted ceiling and in front of the newly titled fireplace located in the living room. Entertain your guests in the dining room while cooking in the newly updated kitchen; new cabinetry and countertops have been installed and are sure to please. There are new light fixtures throughout, and the home has been freshly painted. For your enjoyment and convenience, the bathrooms have been newly remodeled with silestone countertops. Doing laundry will never feel the same again, at least not with this spacious full size in-unit washer and dryer. Take a walk outside onto the refurbished balcony and enjoy the view. Don’t forget for extra convenience the pool and clubhouse are within walking distance.

Printable Brochure | Property Website
Listing Information Sheet | Additional Features

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Awesome Customers

2010-05-18T09:13:00.000-07:00

"I was referred to StartingPoint Realty after dealing with a string of unresponsive agents. As a first time buyer I had a lot of questions and nobody seemed to have the patience or time to deal with my inquiries. From my initial meeting with Ryan & Lucinda I felt very comfortable and at ease. Lucinda answered all my emails, phone calls & questions promptly without making me feel like I was bothersome. Even the attorney Lucinda recommended (Chris Aiello) was great! I'm so glad I was able to work with a team who genuinely had my family's best interest at heart. Kudos to Lucinda for helping me get through buying a foreclosed home.... your 6 months of hard work did not go un-noticed & I never would have made it through this process without you!" - Tara T.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Make Up Your Mind Before You Make Up Your Mind

2010-05-13T06:40:00.000-07:00

An unexpected phenomenon occurred this last month of the $8,000 take credit. We saw several people jump in, get pre-approved, and recently decide they don’t want to buy a home. Why? Because they weren’t ready to do so.

A major bank told us the other day the amount of mortgage applications they took in the month of April might be the most they've had in one month in the past 15 years. Our response to that statement is that we’ll be curious to see how many of those applications actually close.

People drop out of the buying process throughout the year, it just got amplified recently. But most of the time, the reason is the same - some people feel like they should buy a place because their parents tell them to do it, or the $8,000 tax credit, or because their friends are doing it. But in the end, they’re just not ready.

Our advice is to get yourself educated on the process BEFORE you start looking at homes. Take in all the information given to you, ask questions, talk it over with your partner or an intelligent third party that won’t be a part of the transaction. Then ask yourself - am I really committed to doing this? There are two correct answers: Yes and No. An answer of ‘Maybe’ almost always (95% of the time) leads to a frustrated house hunter that wasted several hours taxing themselves only to come to the same spot - not buying.

We don’t want people to buy a home that aren’t ready to buy. To our knowledge, not one of our buyers in our company’s history have gone into foreclosure or had to sell short. So we embrace those people that say, ‘I’m not ready’ because they wait until they are ready. Make the decision that you’re going to buy before you get the ball rolling. It will be one more hurdle you’ll be avoiding throughout the process.

"The pursuit of happiness is a most ridiculous phrase; if you pursue happiness you'll never find it." - C. P. Snow

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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FHA Condos

2010-05-11T09:46:00.000-07:00

Yes, again (this is about the fifth consecutive month we've discussed this subject in this blog). Those of you that will be looking for a condo or townhome, bookmark this page. As discussed in the past, if you're getting an FHA loan and you're buying a condo ownership home (most townhomes are actually condo ownership), the whole building or subdivision (or the phase of the subdivision) must be FHA approved. If it's in the above link, it's good to go. If it's not, your agent will have some work to do, and the condo association will have to play ball and get a good amount of paperwork over to the Department of Housing and Urban Development.

Translation: If it is in FHA's condo database, it's easy. If it's not, it might be more difficult - but not impossible.

"The universe is a big place, perhaps the biggest." - Kilgore Trout

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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HUD Homes

2010-05-06T14:20:00.000-07:00

HUD homes are 1 to 4 unit residential properties acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. StartingPoint Realty was recently approved to handle these transactions for our first time home buyer clients. These homes are priced competitively with the current market and some we’ve seen sell far below market price. Many of these homes do need repairs, but some do not. With these homes, if there is less than $5,000 of work that needs to be done to satisfy FHA’s requirements, you can purchase the home with a standard FHA loan. If the repairs are greater than $5,000, the property may be eligible for an FHA 203(k) (rehab) loan.

There are some risks that could be associated with purchasing a HUD home that you should carefully review with your real estate agent before bidding. Also, you should check with your lender that they are able to finance these types of homes. Currently, HUD is offering a $100 down payment option in Illinois for HUD homes that are financed by an FHA product and are owner occupied, and they do allow for up to a 3% closing cost credit. While these homes will show up in an MLS search, you can also view current HUD home listings online here.

"Correct me if I'm wrong, but hasn't the fine line between sanity and madness gotten finer?" - George Price

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Sample HUD

2010-05-04T14:28:00.000-07:00

It’s one of the most important documents in the home purchasing experience that you don’t know about, until now. This is an advanced subject, even one that we shy away from at our seminars because it can cause one’s head to spin, but we found a good sample and we found it necessary to share it. Click here to view.

The government requires that this sheet must be completed and accurate for the deal to close. Here is where you can see all the charges (and credits) that the buyer and seller has to pay (or receive if it’s a credit). The right column is the seller’s side and shows what they have to pay. For example, if you notice in section 700, the real estate agents for both the seller and buyer are paid for by the seller. The left column consists of the charges the buyer must pay, and that’s the column you should be focusing on. It's these costs that are often referred to as your 'closing costs'.

If we were to explain line by line, this blog would get very long. Some of you that might be closing soon will have this explained to you at your closing by your attorney. But it’s never a bad idea to become comfortable with this form before the big day.

The three main sections for the buyer are: Lender fees (section 800), prepaid items (sections 900 and 1000), title charges (section 1100), government and transfer charges (section 1200), and additional settlement charges (section 1300).

The one thing we do want to point out is that on line 803, ‘Your adjusted origination charges’ of $8,000 is an unusual charge and most of you will elect not to pay this fee. This person was probably buying down their interest rate (you can pay money up front to afford yourself a lower interest rate - thus called a ‘buy down’).

The line items will be similar, but your amounts will all be different. For example, in this sample statement, the buyer is paying a transfer tax stamp of $3,000 (line 1203). If you’re buying in Chicago, your charge for this transfer tax stamp is $7.50 per $1,000 of the purchase price ($200,000 home will cost you $1,500 in transfer tax stamps). If you buy in most of the surrounding suburbs, you won’t pay anything, the city (Arlington Heights for example) doesn’t charge the buyer a transfer tax stamp.

Again, as you can see, this can get long. Please reply to this blog with any questions, we’ll be happy to answer them for you.

"Parents were invented to make children happy by giving them something to ignore." - Ogden Nash

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Comparison Worksheet

2010-04-29T06:25:00.000-07:00

Once you’re out looking around, most of you will become attached to two or three homes. Side note: we ALWAYS recommend keeping a running tally of your top three at all times. Making comparisons as you go along helps simplify the house hunting process. We’ve had a few people ask throughout the years if we have a worksheet or guide to help people make their decision. We recently came up with this worksheet to help out: here is a blank version and a sample version.

This is meant to be a guide and we recommend everyone to add, subtract, or weigh certain factors heavier (or lighter) than we did. What’s important to one, is not important to the other. For instance, it’s a safe assumption that layout and location would be top features, but we’ve had some say they wanted a home with newer appliances or double sinks, or a gas stove, and those were more important to them than the layout and location. It’s your agent’s job to tell you what most people look for, but your preferences and decision are your own. Everyone is different.

If you utilize this sheet, have your agent help you if you’re stuck on a few of these.

"An undefined problem has an infinite number of solutions." - Robert A. Humphrey

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Answer to the Question

2010-04-27T14:48:00.001-07:00

I'm thinking of buying a place later this year or in 2011. What should I do now?

We're assuming most of you reading this right now are probably asking this question, or it's at least relevant to you. With the expiration of the $8,000 tax credit, most people looking to jump into the market this spring or early summer have already done so.

The best advice we can give to you right now, and those that have attended one of our seminars know the answer - speak with a lender right away. Yes, even if you’re twelve months away, do it now. Who can you call? Find a good loan officer - ask your friends or family. We can vouch for these lenders, click here to get their info.

It's simple. It will only take 15-20 minutes and this can all happen over the phone. They'll pull your credit, talk to you about your income / debt, then let you know where you stand. The reason we instruct people to call early is so:

1. You can begin to save / budget for the purchase.
2. If something pops up on your credit report, you have time to fix it.
3. A good loan officer will make you feel comfortable, you'll be given valuable input that will help you in the months leading up to your actual search.

Most of you will find this to make sense. Most of you will think it's a good idea. Most of you won't make the call and wait until you're ready to search around for your home. Don't be in the majority here. Call a good loan officer and listen to what they have to say. We often draw similarities of the phone call to a loan officer like going to the dentist. We dread it, put off the call - but once we get our teeth cleaned, we feel great about it and always say to ourselves, 'it wasn’t that bad.' If you're going to buy a home, you're going to have to talk to a lender sooner or later. Do it now, before you get cavities.

You must also get yourself educated on the process before you jump into the process. For those looking for a more comprehensive education, attend a first time home buyer seminar in your area. Most will be taught by a Realtor and Mortgage Professional. Most people do not want to be bothered or sold anything during these sessions, so find a local seminar where the instructors are dedicated to just that - teaching the seminar.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Free First Time Homebuyer Seminars

2010-04-08T11:30:00.000-07:00

We are always joined by a qualified mortgage professional. If you would like to attend one of our free home buyer seminars, please RSVP by clicking on one of the dates above.

"I don't know if you remember me, but my husband and I went to a seminar you gave at Goose Island earlier in the summer. Not long after the training, we found out that I had received a job offer out in Phoenix, AZ. Anyways, long story short, we just closed on a house out there this week and a lot of the thanks goes to you and that seminar for making us aware of what we were getting ourselves into! I've enclosed a picture of the house." - Past Seminar Attendee, 2009

Some of the subjects covered:

- $8,000 First Time Home Buyer Credit
- Foreclosures / Short Sales
- Roles of the Lender/Mortgage Broker
- FHA / Conventional Loan Guidelines
- Credit
- Pre-Approval
- Roles of the Real Estate Agent
- Searching for Properties
- Contracts
- Negotiation
- Closing

Here are some questions that were asked during a home buyers seminar last month:

- How much should I estimate for closing costs?
- What does the attorney do for me?
- Can I get a loan to cover rehab costs?
- Do I really need 20% to put down on a home?
- What is an FHA Loan?
- How does the loan officer get paid?
- How do I get the $8,000 tax credit? How long does it take?
- Can I fire my Realtor?
- What can I do to get my credit score higher?
- Can we still get a home if one of us has great credit and the other has not so great credit?
- Where do I start in the negotiation process?
- Does earnest money show the seller how serious the buyer is?

If you'd like answers to any of these questions, or any others that you might have on your own, please reply to this newsletter. Thanks!

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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"I don't really trust a sane person." - Lyle Alzado

Movie Review - It Might Get Loud

2010-04-06T11:16:00.000-07:00

Have you ever watched a movie and wondered if the director had only you in mind as the audience? A bit narcissistic, but that’s how I felt about ‘It Might Get Loud’. It’s a documentary about the guitar and music as seen through the eyes of Jimmy Page (Led Zeppelin), The Edge (U2), and Jack White (The White Stripes). They all come together on a soundstage and discuss the guitar, how they play and came up with certain songs, and, of course, they jam. The music is great (one of the jams is the Led Zepplin song ‘In My Time of Dying’), but the way director Davis Guggenheim handled the project is what made the movie.

Guggenheim had no idea which direction he was going to go when he was set to direct the film, so he interviewed each of the artists for three hours in their own surroundings. Guggenheim knew only then where to take the movie. He wanted to find out what made these artists tick. What makes them the best. For White, it’s authenticity and getting back to the blues. For the Edge, it’s getting the sound that’s in his head to get through the guitar (these are not simple sounds by the way). For Jimmy Page, it’s a bit more complicated - I found it almost a mix of the other two, although he preceded them. Page was the guitarist around town, the session guitarist for most of England. He rebelled against that type cast, and it all evolved into Led Zeppelin: the bow, the black magic, the long arrangements - all of it being the anti-session guitarist. He’s the icon in the room. The Edge and White treat it that way but without going over board. But watch The Edge and White’s faces when Jimmy Page picks up his guitar and starts playing ‘Whole Lotta of Love’. Truly the look of two teenage kids watching their superhero fly over a skyscraper.

Personally, I love Led Zeppelin. My favorite band of all time. I always respected U2 and have always considered The Edge as tremendously underrated. But for me, it was Jack White. I’m a blues music addict. When my friends come over, most complain about the Muddy Waters or Elmore James songs that are constantly played in the background. The find out where White gets his inspiration, Guggenheim digs deep. There’s a scene where White plays a record in what looks to be like an old upstairs attic. The song that comes through the speaker is Son House singing ‘Grinnin in Your Face’. He listens intently, the music stops, and White goes on about how that's the song he's always trying to replicate. Son House is an acquired taste for most people, but when I first heard him, I pretty much had the same response. Not in the artist sense, but more in the way that it turned blues upside down for me. It became all emotion, an out pour of feeling - no other music or art form comes close. That's my opinion, maybe Jack White's as well. I'm sure some of you might feel the same connection with The Edge or Jimmy Page. Most will just like the music and enjoy the journey of learning more about these great artists.

Maybe 'Avatar' was the biggest grossing film of all time, but I'll watch 'It Might Get Loud' at least 50 more times throughout my life. A movie like 'Avatar' may have been the movie of the year, but 'It Might Get Loud' will long outlast 2009.

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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"We are all apt to believe what the world believes about us." - George Eliot

Average Life Span of Appliances, Furnaces, etc.

2010-04-01T12:40:00.000-07:00

Yes, as a homeowner, you own all your appliances plus the water heater, furnace, garbage disposal, etc. The question comes up as to how long a certain appliance can be expected to last. Here are some estimates derived from Consumer Reports.

Feel free to read the comments as well. You’ll see many complain that the list is too conservative, while some add comments about how their particular appliance failed way too early. Thanks to Denny McAuley from HomeCheck America for passing this along.

"We are the people our parents warned us about." - Jimmy Buffett

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Featured Listing

2010-03-30T08:42:00.000-07:00

1506 Seville Court C2
Wheeling, IL 60090

$224,900
MLS# 07425906
Bedrooms: 2
Bathrooms: 2

Printable Brochure | Property Website
Listing Information Sheet | Additional Features

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Awesome Customers

2010-03-25T06:23:00.000-07:00

"I was very pleased with StartingPoint Realty. When things got messy with the whole loan process Ryan was there for me and I greatly appreciate it. I would recommend him to any of my friends & family. Thanks again Ryan." - Michael Rice

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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Foreclosures - HomePath Through Fannie Mae

2010-03-23T06:23:00.000-07:00

If you’re in the market and looking at foreclosures, read the fine print or ask your agent to investigate whether it’s a Fannie Mae owned property. If it is, read this to learn more.

Fannie Mae will give you up to 3.5% of the purchase price back to you for closing costs, or they’ll give you brand new Whirlpool appliances, or a mixture of both. Not bad, but you need to know to ask for it.

"Humor is also a way of saying something serious." - T. S. Eliot

Ryan Gable
Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@StartingPointRealty.com
www.startingpointrealty.com
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