Elgin Enters Bidding War

Elgin is not showing up on the national scene, but local investors are snapping up below bargain rates on homes across the Fox Valley area this summer.

Local Realtors have seen a big uptick in multiple offers on investment properties, sometimes just cash only purchases, but with financed deals as well.  First time home buyers are seeking to enter a new and improved housing market, buying at the end of a significant downturn at mortgage rates not seen in decades.  Remember when 5.65% was a great rate 7 years ago?  New home buyers can scoff at it and get as low as 3.79%, some with special programs like FHA that allow 3% downpayments.

First time home buyers might not yet be feeling the crunch of having multiple buyers on a home purchase, but they soon might.  Putting together an offer on a property only to find out 5 others have the same idea can be disappointing.  But the flip side to this is that more bidders mean a better housing market.

The Washington Post also has found that neighborhood marktes are coming back stronger than the whole.  Once again, real estate proves that it is location that matters.  If you are selling in a desirable subdivision, you may see 2 or 3 offers come in on your property, raising the price above the asking price.  Do appraisers take this into account?  See the story link below:

http://www.washingtonpost.com/realestate/house-sales-hampered-by-appraisers-who-fail-to-recognize-appreciation/2012/06/21/gJQALhMetV_story.html

Real estate has never been more local.  Find a local Realtor who knows not only your city, but your subdivision and get the facts today!

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