Jeff Kropp, Author at The Home Buyer Agents of Chicagoland

How Much Money Does it Take to Buy a House?

February 27, 2019 By Jeff Kropp

The total out of pocket costs to purchase a home in Chicago is equal the down payment + closing costs + a few other factors that could have an impact depending on the situation.

coins stacked next to a cardboard house

Closing costs are separate and in addition to down payment. Closing costs are a combination of all of the fees charged by each vendor who is required to provide services to close your purchase. Even though each vendor sets their own fees, your lender is challenged with the task of giving you the initial estimate of what those fees are. The “lender fees” actually paid to the lender (such as points, underwriting, and processing fees) are usually just a small portion of the overall “closing costs” which are collected by other 3rd parties. [Read more…]

February 2019 Market Reports

February 21, 2019 By Jeff Kropp

Good News for Buyers as the Market Corrects

The real estate market data for all 77 Chicago neighborhoods shows the continued slowing of the market as predicted. The data varies from neighborhood to neighborhood, and even block to block, but in general we are seeing a more balanced market at the end of a 10-year real estate cycle.

The total deals closed are down 10%-20% from this same time last year. Inventory is increasing a little bit but mostly for higher end condos. There is a still a significant lack of inventory of single family homes in nicer North Side areas. Market times are way up and final sales prices are beginning to slag. The uncertainty of mayoral elections and the Illinois economy persists.

[Read more…]

The 2019 Housing Market: The Good, The Bad, and The Ugly

January 16, 2019 By Jeff Kropp

The Good:

Evidence is mounting that inventory will finally improve in 2019, and we have already seen that in a few areas (especially condos). This may apply some downward pressure on prices for beleaguered home buyers. Perhaps a buyer’s market is ahead or at least a more balanced market (where the inventory of homes is 4-6 months). Mortgage rates spooked some buyers in the fall as the 30-year mortgage rate was above 5% for the first time in years, but they have since fell back to around 4.25% for a single family home. Other bright mortgage news is Fannie/Freddie loans have a new loan limit of $484,000, up from $453,000. Most buyers want the best interest rates offered by Fannie/Freddie loans and so they try to keep their loan under these amounts. [Read more…]

December 2018 Market Report

December 18, 2018 By Jeff Kropp

This is a great time to buy or sell a home in some of Chicago’s most popular neighborhoods and Suburbs. Our December 2018 market reports will give you the edge you need to find the home of your dreams. These guides will help answer questions that are bound to come up in your real estate search such as:

How much are homes selling for?
How many homes are for sale?
How long do homes stay on the market before they sell?
How many homes have sold over the last month?
Are homes selling above, at, or below the asking price?

[Read more…]

What Are Property Taxes?

December 18, 2018 By Jeff Kropp

Property taxes are taxes paid to the county where you live to support local government. Some of the money will go to school districts for things like teacher salaries and pension, and some will go to your municipality for police and fire protection. Your tax bill will give you a breakdown of where the money is distributed generally.