Bidding wars in Elgin

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 Elgin area 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 3.49%, some with special programs like FHA that allow 3% downpayments.

What does this mean for appraisers?  Do they take into account the local comps and show an upswing in market value?  Or do they toe the line and stick to a safer, below market value average price?  A few neighborhoods in Elgin are showing their value now, as more desirable neighborhoods are making a come back in pricing.  What do you think?  The Washington Post says home sales are skewed:

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

Check in with your local Realtor who specializes in your neighborhood for details.  Or email me for more details anytime: Jennifer@ElginFoxValley.com

 

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