Behind the Buzz: We all know that interest rates are at historic lows, and that everyone’s touting “now” as the time to buy or sell a home. But what’s the real deal behind all the hype – and where can the real deals be found in the Chicagoland market? Ken Dooley, real estate agent with Conlon: A Real Estate Company, joins Ken Perlmutter, founder of PERL Mortgage to discuss buzzworthy “trends” — fact vs. fiction — in today’s market.

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Condos for College Students: With rising rates of tuition, housing, and student fees, parents in today’s economy are looking for alternative ways to make ends meet when their children head off to college. Judy Pettas, Principal at Premier Properties and Ken Perlmutter, PERL Founder, discuss investment homes for college students.

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If you’re a first-time homebuyer gearing-up to cash-in on the $8,000 tax credit, you already know that the clock is ticking. And in the middle of the buying frenzy, it’s easy to overlook what’s most important when buying a condo, townhouse or single family home.

The following list of questions can be leveraged as a touchstone to ask the on-site seller’s real estate agent:

The Roof

How old is the roof and what condition is it in? Have there been any leaks? In what condition are the eaves and gutters? When does the roof need to be replaced? If it has been replaced recently, was it a “tear-off”?

The Structure

What kind of foundation does the home have? When was it laid? What condition is it in? Has the basement taken any water? When was the frame itself built? What type of rehab was done here? A full gut down to the studs? Just a kitchen update? Bath update? Finished attic or basement? How old is the siding? Is it under warranty?

Knowing detailed information about the structure is key before buying a home.

The Guts

What kind of insulation is in the walls? How old are the windows? How many amps in the electrical service? Is the house wired for security? For cable? For surround sound? How are the pipes and water service? Can we check the water pressure? What kind of heating/air conditioning system does the unit have? Gas-forced air? Radiant heat? Is it zoned?

The Location

What are the association dues or assessments? Is the building self-managed? Is there indoor parking? Are the spaces deeded? Does street parking require a permit? How close is public transportation? Are there shops and restaurants nearby? What about parks and playgrounds? What is foot and auto traffic like in the neighborhood? What are the closest public and private schools and where are they located?

Keep in mind that real estate agents won’t comment on the quality of the schools in the area; that’s research you’ll need to do yourself.

Questions to ask The Buyer (That’s You!)

What are my space requirements? How many bedrooms and bathrooms do I need or want? Do I want a master suite? Would I be comfortable living in a multi-level home? In a multi-unit building? Would I be okay sharing walls and common areas with my neighbors? What is the floor and ceiling of my budget? What is my threshold for having rehab or update work done? What’s most important: The space itself, location, or size? Do I want a contemporary home or a classic?

And here are a few open house tidbits that are often overlooked:

Consider time.

A city corner on a Tuesday afternoon in the dead of winter is a bit quieter than it is on a Friday night in the middle of the summer.

Consider the essentials.

When looking at a new construction home or condominium, have a list of the bare essentials you need to live in a safe, comfortable and secure environment. Remember that once you close on a property, it can be more difficult to get some of the things you want or need from the seller.

Consider staging.

Pay close attention to how the property is staged. It should give you a good sense of how the space can be utilized. A cramped and cluttered staging may be an indication that a home doesn’t have enough space, or that the seller is unprepared.

And if you have questions regarding financing, don’t hesitate to call a PERL Mortgage adviser for a free consultation!

Congress recently passed a bill extending the first-time homebuyer tax credit to mid-2010. Bob Bowman, Mortgage Consultant with PERL Mortgage, discusses the components of this extension — as well as economic indicators he uses to monitor daily interest rates.

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Market Comment
Mortgage bond prices rose last week, pushing mortgage interest rates lower. The Fed spent another $45 billion buying mortgage bonds between November 5th and the 11th. For all the criticism the Fed receives for the handling of the economy, they deserve credit for keeping mortgage interest rates low throughout the year. However, the long term outcome is uncertain. The record Treasury auctions continued to be absorbed in trading without any major problems.

For the week, interest rates improved by about 7/8ths of a discount point.

This Wednesday’s consumer price index data will be the most important release this week. Producer price index data along with retail sales data will set the tone for the start of the week. While inflation indications could hurt mortgage interest rates, signs of tame inflation could help rates improve.

Tax Credit Extension
The housing market received some good news when Congress recently acted on the pleas of housing sector professionals and extended the $8000 first time home buyer tax credit. In addition, the program was expanded to include move-up buyers with a $6500 tax credit. The program now runs through April of next year. Prior to the extension the program was set to eclipse at the end of November. Additional details about the extension can be found here.

Even with the positive measure, the program is criticized for doing nothing to address the foreclosure problems that continue to plague the housing market. Unfortunately, the cost to extend the credit is around $1 billion per month. This has politicians from both sides of the aisle concerned.

The new and move-up buyer incentives coupled with historically low interest rates make now a great time to purchase a home. Low rates also make it favorable for many current homeowners to refinance.