What would Flash Gordon Do?

Part of the Real Estate business is networking and talking about real estate. As just about everyone in my immediate family holds a real estate license, we talk about real estate like Bubba in the movie Forest Gump talked about all the ways you can cook shrimp.


One of the recurring themes we all hear is “I want to move, but I lost too much value in my home to afford it”

Let’s look at this simple example: You Mr. and Mrs. Big Bucks own a home free and clear that use to be worth $100k and is now worth on $90k due to the drop in market prices.

The home you want was worth $200k and is now worth only $180k due to the same drop in market prices.

Look at this simple example to see why it is to your advantage to sell your existing home and move to the larger home that you want and need.

                                          Sold & Bought Before        Sell and Buy Now
Sell Existing home @ Market          + $100,000                    + $ 90,000
Buy new home @ Market                - $200,000                    - $180,000
Amount of New Mortgage            - $100,000                    - $ 90,000

This example shows that by selling your current home for less money and buying your new home at a lower price, the mortgage on your new home will be less than if you made the move a few years ago.

Now take a deep breath, look at your significant other and ask yourself if you have the courage of Flash Gordon to move forward in the face of uncertainly.

If you would like help reviewing your specific situation, give me a call at 708-274-3830. Together we can complete your analysis in about 15 minutes.

Wayne O'Day

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Frankfort IL - Builders have a 30% off SALE

Recently I showed some brand new homes in Frankfort IL and I could not believe the Builders’ prices. By my calculations, these homes are priced 30% below replacement cost.


THESE ARE NICE HOMES; 4+ bedrooms, 3+ baths, master suite with tricked out showers & walk-in closets, large kitchens with upscale appliances, fireplace, 3 car garages and landscaped. WOW! – That’s a lot of house to get for $450 - $550k.

So why are these homes so Cheap????  I spoke with some of the builders and they have been carrying these homes for 2 years. The answer is obvious; they can no longer afford the carrying costs. If a builder borrowed $500k from a bank at 7% interest amortized over 30 years, their monthly payment would be $3,327. Add to that taxes, utilities, landscaping and cleaning, the monthly bill could easily reach $5,000; that’s $60,000 per year for a home that you don’t live in.

THESE HOMES, AT THESE PRICES, ARE INCREDIBLE VALUES.

I rubbed my crystal ball to see what the future market would look like for homes like these. What I see are fewer builders, being very reluctant to build spec homes in this price range. Homes will be built only after large non-refundable deposits have been received and the ultimate home price will need to increase substantially to cover construction costs and provide a profit for the builder.

These low prices and the low mortgage rates make these homes extreemly attractive.

The Cherry on the top of this ice cream sundae is the $6,500 buyer credit the government just announced for existing home owners who have lived in their homes 3 out of the last 5 years.

If you are interested in seeing any of these beauties, or similar new homes in other areas, just give me a call at 708-274-3830.

Happy House Hunting

Wayne O'Day

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BUSINESS WEEK's 2009 BEST Place to Raise Kids - TINLEY PARK IL

Business week announced yesterday its 2009 pick for the Best Place in America to Raise Kids. This years choice:

TINLEY PARK ILLINOIS

Click to view the Business Week Video

If you are interested in finding out what homes are availalbe in Tinley Park IL give me a call and I can set you up to search for homes as if you were a member of my Team.  Give me a call at 708-274-3830

Happy House Hunting

Wayne O'Day


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Are YOUR Expectations Reasonable?

I was in McDonalds this morning waiting to get a cup of coffee when a guy walked in, walked up to the counter and placed a McDonalds coffee cup down and requested a refill. The McWorker behind the counter advised the guy that the free refill offer ends the moment you leave McDonalds and by the way, the fall color of the coffee cups is now red and the color of your cup, Mr. McGuy is tan.  McGuy’s response was priceless; “You got to be kidding!”


What was McGuy’s expectation? Did he expect McDonalds to give him Free Coffee for life as long as he had his McCup which he paid $1 for and originally came filled with a pretty good cup of coffee?

Yesterday afternoon I was pulling out of my subdivision. Pulling out of the subdivision across from me was a dark haired girl that was multi-talented. She was able to race up to the intersection, assess the traffic, and driving like a bank robber, made a very fast left turn onto the main street all while lighting her cigarette. I turned out behind her and my route requited that I follow her for a few miles. About a mile into the journey, the cigarette smoking, fast driving dark haired girl, with people to see and places to go, jettisoned a fast food restaurant napkin from the driver's window and continued driving like a bad chase scene from Cops.

What was Ms Speedy’s expectation? How did she rationalize tossing a napkin from her window was the right thing to do? Who did she expect would pick-up her discarded napkin?

Last week our Congressmen and Senators extended the first time buyer credit for another 4 months until April 30, 2010 which puts up to $8.000 cash into the pockets of first time buyers. With home prices and mortgage rates at historically low prices, homes will never be this affordable in out lifetime, but why are so many first time buyers afraid to go into the water?

Are they expecting home prices to go significantly lower and mortgage rates will substantially decline, making the existing Great Deals Incredible Deals?

This brings us to where we started, are these expectations reasonable?  I welcome your comments and perspective.

Wayne O'Day

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1st Time Home Buyer Credit Extended and EXPANDED

GREAT NEWS for Orland Park, Tinley Park Region Home Buyers, Congress Extends 1st Time Home Buyer Credit!  Credit is extended to EXISTING HOMEOWNERs who have lived in their home for the past 5 years.  This is an initiative that was support by our own 13th Congressional District Representative, Judy Biggert.  Thanks Judy.

Wayne O'Day

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