Barry Schwartz, Mortgage Consultant and Top 200 Producer, discusses appraisals, their impact on the purchase and refinance transactions, and how the process of ordering appraisals has changed through new legislation.

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Beginning April 1, 2008, Chicago home buyers will be hit with a 40 percent increase in the city’s real estate transfer tax. Instead of paying $7.50 per $1,000 of sale price, they’ll pay $10.50. For example, on a $300,000 home, the city tax would jump from $2250 to $3150.

The increase was approved last week by both chambers of the Illinois General Assembly as part of a financial bailout for the Chicago Transit Authority. As a result, buyers will have to bring in more cash to close.