If you are buying or selling real estate, you may have heard the term “appraisal contingency“ thrown about by your real estate agent. But do you really understand what it means? Do you know how it affects you? Whether you are buying or selling real estate, if the transaction is being financed, the appraisal contingency is very important. Let’s back up a second. What is an appraisal? Well, when you engage a lender to finance your transaction, they will typically order an appraisal to determine the value of the property you are purchasing. The actual appraisal is handled by a third-party company. Neither your loan officer nor your bank is personally handling the appraisal. What does the appraisal entail? Well, once the appraisal is ordered, an appraiser will be sent out to look at your property. Usually the appraiser will not only go inside and look around, but also… read more →
If you are selling your home, you want everything to be smooth. You could be selling for any number of reasons — upsizing, downsizing, moving out of state, moving to senior living, or even because you are just ready for a change. After all, you went to all the trouble of putting your house on the market, procuring a buyer, dealing with the buyer’s inspection items, waiting for the buyer‘s mortgage to be finalized, and meeting with your attorney to sign a stack of papers. And now finally, finally, finally, you have a closing date on your calendar. Just a few more days, and you will be on to the next chapter of your life. Or so you thought. . .Everything was fine. . . And then your survey came in. In a typical residential real estate transaction, the survey is usually one of the last things the parties actually… read more →
Much has been made in the news recently about the proposed “Mansion Tax” referendum that will be on the primary ballot for Chicago voters in March of 2024. But for the average person to understand what this proposed tax actually is, it is important to understand how Chicago properties are currently taxed. First of all, the proposed “Mansion Tax” does not refer to real estate taxes or income taxes. The “Mansion Tax” is all about transfer taxes. Unlike income tax, which is due every year, or real estate taxes, which are due twice a year, we don’t hear a lot about transfer taxes in the news. Why is that? It’s because transfer taxes are only due when real estate is bought or sold. If you bought your house 10 years ago, you paid the tax then. You won’t be paying anything again until you sell. Unless the property is exempt… read more →
At least once a week, quite literally every week, I talk to a client who says to me, “I need to put my house in a living trust.” I had this conversation with someone just yesterday, and it was not even the first time this week. Over the years, I have learned that there is a one-word follow-up to this statement: “Why?” And really, whether or not the house needs to go into the living trust is dependent on the answer to that question. Many people have heard from their friends, their family members, and, of course, the internet, that they should have a living trust. A living trust is a wonderful estate planning tool. It can simplify the process of transferring assets to family and other heirs after a death. That is why I ask people why they want to put their house into a living trust. If they… read more →
Dual agency is when one real estate agent represents both the buyer and the seller in a real estate transaction. While it is not an uncommon practice, it can sometimes create conflicts and leave the parties feeling like their own interests are not being protected. The parties may feel as though one side is being favored over the other despite (1) any written disclosure or agreement between the parties and the dual agent, and (2) any rules of conduct prescribed for dual agents. Despite that, there are quite a few advantages of having a dual agent. For example, communication between the parties could be faster. The dual agent will have more knowledge of the property and the situation, which can help streamline the process. Having less people involved in the transaction makes it smoother when it comes to obtaining responses from the other party. The agent may already know the… read more →