Check out this article from the Chicago REALTOR Magazine, regarding SCG’s award-winning Renaissance on Kimbark:

The Chicago Association of REALTORS recognized 29 innovative properties with 2011 Good Neighbor Awards on May 18, at an awards reception held at Lincoln Park Zoo’s historic Cafe Brauer.  Award-winners included new and renovated residential and commercial properties in the city and suburbs.  Each demonstrated a successful approach to serving a community need and increasing the vitality of our city.

“The Good Neighbor Awards are a great opportunity to thank developers and property owners who contribute to our region’s economic success and the appeal of its neighborhoods,” said C.A.R. President, Mabel Guzman.  “The Good Neighbor Awards celebrate property development at its highest calling.”

The 2011 Good Neighbor Awards top honoree — winner of the 2011 Bruce Abrams Award – was the fourth phase of the Renaissance on Kimbark condominium development, located at 6457 South Kimbark Avenue in Chicago’s Woodlawn neighborhood.  The Bruce Abrams Award was received by Hasani Steele, Steele Consulting Group, @properties, and Lewis Korompilas, Premium Builders. 

The concept for this award-winning multiple phase development dates to 2008 when Steele and Edmund Offokaja, of Stonemason Group, decided to deliver quality housing in Woodlawn with a sales model that would be sustainable into an uncertain economic future.  With the help of Hanna Architects, a building prototype was created and development goal set.

“Renaissance on Kimbark” buildings feature luxury 1,700-square-foot simplexes and 2,800-square-foot duplexes with rooftop decks.  Each phase pre-sold half its units prior to construction, despite the tough economy.

C.A.R. honored each of the development’s first three phases with a Good Neighbor Award for its contribution to community stabilization and helping neighboring properties secure refinancing.  The fourth phase received the 2011 Bruce Abrams Award for its standing as the highest-quality phase in the project yet - and for rising above economic challenges that threatened to derail completion though half the building’s units were pre-sold.

“We rallied the community for approval and pre-sold 50 percent of each phase prior to construction, with buyers coming from the community, surrounding neighborhoods and the suburbs,” Steele said.  “We are proud to receive this award as an endorsement of our efforts to give back to the city that supports us.”

Check out this article from the Chicago Tribune, regarding SCG’s Renaissance series:

By: Mary Ellen Podmolik, The Home Front

It’s only 32 units spread over four buildings, but a phased project in Chicago’s Woodlawn neighborhood has received “good neighbor” kudos from the Chicago Association of Realtors for three consecutive years.

Most recently, the fourth phase of Renaissance on Kimbark was awarded the group’s highest honor, the Bruce Abrams Award, named for the deceased founder and president of the former LR Development.

Hanna Architects, Stonemason Group and Hasani Steele, an @Properties realty agent and development consultant, teamed up to deliver the first three buildings. Those phases were previously honored for helping to stabilize the neighborhood and filling in several vacant lots.

The fourth phase, constructed by Premium Builders, got the nod not only for the extra design touches put into the building but also for doing what seems undoable in the current environment: succeeding, and that’s not just because only three of the 32 units remain for sale.

What also worked for the project, according to Steele, was what he labeled “pricing integrity.” Priced at $249,900 to $349,900, the development offered financial assistance with closing costs but the units themselves were not discounted. That’s a different strategy from most developers in the current environment, who either have slashed prices, thrown in free cars at closing or rented units to recoup some of their investment.

Owners already in those type of developments have had to trade the comfort of knowing there’s someone in the neighboring units for the sobering reality that their home equity, and possibly their ability to refinance, has been compromised.

Steele, who for a time worked at CarMax, which boasts a no-haggle price on each vehicle, didn’t want to go that route. Instead, he wanted to educate buyers on what they were purchasing and why they were paying the prices they were.

“It appeals to a certain type of buyer,” Steele said. “I’d sit down with people and I’d say ‘this is the price,’ I’d say what you’re buying is not just an individual condo. What you’re buying here is partially like a partnership with the other people in the building. You’re buying into the ward’s vision.”

During the headier days of the housing market, when investors and homebuyers who thought of themselves as investors controlled the market, that sales approach might not have worked, he acknowledges.

“People didn’t care about the finishes because they thought they’d rent it out or they’d flip it,” Steele said. “We wanted to get people emotionally tied to the product, and they’d love it and they’d buy. People will go into debt for things if they genuinely love it.”

It’s a strategy that may get battle tested yet again. Another piece of land, this one 67 feet wide, may become a fifth phase of the development.

Source: “Pricing Integrity” Pays off for Developers Chicago Tribune (June 5, 2011) 

Source: “‘Pricing Integrity’ Strategy Gets Homes Sold,” Realtor Magazine (June 6, 2011)

Click here for more information about the remaining Renaissance units

Condo Project Enhances Woodlawn Neighborhood, Wins Chicago Association of REALTORS’ 2011 “Bruce Abrams Award”

Chicago, Ill. – The fourth phase of the “Renaissance on Kimbark” condominium development, located at 6457 South Kimbark Avenue in Chicago’s Woodlawn community, is the 2011 winner of the Chicago Association of REALTORS® Bruce Abrams Award. The highest honor within C.A.R.’s annual Good Neighbor Awards recognition, the Bruce Abrams Award recognizes quality and innovation in real estate development, and properties created with a passion for serving Chicago residents. The 2011 Bruce Abrams Award was received by Hasani Steele, Steele Consulting Group, @properties, and Lewis Korompolis, Premium Builders.

The concept for this award-winning multiple-phase development dates to 2008 when Steele and Edmund Offokaja, of Stonemason Group, decided to deliver quality housing in Woodlawn with a sales model that would be sustainable into an uncertain economic future. With the help of Hanna Architects, a building prototype was created and development goal set.

“Renaissance on Kimbark” buildings feature luxury 1,700-square-foot simplexes and 2,800-square-foot duplexes with rooftop decks. Each affordably-priced phase pre-sold half its units prior to construction,despite the tough economy.

C.A.R. honored each of the development’sfirst three phases with a Good Neighbor Award for its contribution to community stabilization and helping neighboring properties secure refinancing.

The fourth phase received the 2011 Bruce Abrams Award for its standing as the highest-quality phase in the project yet – and for rising above economic challenges that threatened to derail completion though half the building’s units were pre-sold.

“We rallied the community for approval and pre-sold 50 percent of each phase prior to construction, with buyers coming from the community, surrounding neighborhoods and the suburbs,” Steele said. “We are proud to receive this award as an endorsement of our efforts to give back to the city that supports us.”

C.A.R. presented the 2011 Bruce Abrams Award and 28 other 2011 Good Neighbor Awards at a recognition eventheld on May 18 at Lincoln Park Zoo’s historic Café Brauer.

“The Good Neighbor Awards event is a great opportunity to thank developers and property owners who contribute to the economic success of our city and the appeal of its neighborhoods to families and others who want comfortable and affordable homes,” said Mabel Guzman, President of C.A.R. and REALTOR® with ENVISION Real Estate. “The Good Neighbor Awards truly celebrate property development at its highest calling.”

Smart Move Mortgage Products offer affordable interest rates and down payment assistance for borrowers of low to moderate income.  The programs are ideal for borrowers who need extra flexibility on sources of income or who have limited funds for down payments and/or closing costs.

Features

• Offers up to $6,000 in down payment and closing cost assistance as a 10-year 0% forgivable loan
• Maximum LTVs from 96.5% to 100%
• Conventional/FHA/USDA insured products available
• Fixed rate with terms up to 30 years
• Reduced mortgage insurance requirements on conventional programs

Mortgage Insurance

Mortgage insurance requirements are approximately 1/3 less than other conventional products.

              LTV Ratio                    Coverage

              80.01-85%                          6%

              85.01-90%                         12%

              90.01%-95%                     16%

              95.01%-97%                      18%

Qualifications

• Minimum credit score requirement: 620 (FHA and USDA loans); 660 (conventional loans)
• Maximum total debt (back end) ratio of 45%
• Buyer must contribute 1% or $1000 of the purchase price, whichever is greater
• First-time homebuyer or qualified exemption
• Household income and purchase price limits apply
• Homeownership counseling is required

For more information, call Hasani Steele at 877.734.0070 ext. 7, or email steele@atproperties.com.

Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.

The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.

PRICES

The National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:

The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.

A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.

INTEREST RATES

The Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:

“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”

So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?

The price is the same. It just costs more.

Let’s show you what the news means:

By sitting on the sidelines for the last 90 days a purchaser lost:

• $89.44 a month
• $1,073.28 a year
• $32,198.40 over the thirty year life of the mortgage

If you buy a $340,000 home, double all these numbers.

Bottom Line

Even if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.

It May Already Be Gone.

Homebuyers trying to time the real estate market today may think they have it down to a science. They watch the news, read the papers, hear that prices are dropping, and assume the bottom hasn’t arrived. So they wait.

There’s just one problem. The bottom – at least the bottom for interest rates – appears to be gone. And it just so happens that interest rates are a very powerful determinant of how much home you can afford and what you’ll pay each month – even more powerful, in some instances, than price.

Conforming 30-year mortgage rates are already a half-point above their October lows, clocking in at 4.625% heading into the second week of December. This is consistent with the Mortgage Bankers Association’s (MBA) prediction that the average rate on the 30-year loan will increase to 4.7 percent in the first quarter of 2011, and could reach 5.1 percent by the end of next year. Meanwhile, a recent forecast by the University of Chicago Booth School of Business predicts that Chicago home prices will remain near their current levels, while the U.S. economy will enjoy stronger than expected growth in 2011.

In Illinois, the economy is fighting its way back. State unemployment has gone down for seven consecutive months, and a great start to holiday shopping indicates consumer confidence is on the rise. While the Fed has stated its intention to purchase an additional $600 billion in Treasury securities, the MBA says this move is priced into current rates.

It may be hard to believe, but in the long run it makes more financial sense to buy a home at a higher price with a lower interest rate than vice versa. So instead of trying to time the bottom for prices, get the best interest rate you can on a mortgage and home that’s right for you.

For more information on how interest rates affect purchasing power, please feel free to contact me. And please remember that I’m never too busy for your referrals.

Interest rates can impact your payments and purchasing power more than the price of a home.

Monthly principal & interest per $100,000 borrowed
4.25%    $492
5.25%    $552

Loan amount with $2,000 monthly principal & interest
4.25%    $406,000
5.25%    $362,120

Current market conditions suggest that real estate’s traditional “off season” – the months of November, December and January – could actually represent the best opportunity during the next 12 to 18 months to make a deal. For buyers and sellers who are forging ahead in the next 60 to 90 days, here are some keys to success in today’s market.

SELLERS
Price Correctly – The discussion on selling your home starts and ends with price. Remember, the right asking price for your home is not determined by what you paid or the balance on your mortgage. Rather, it has everything to do with the market right here, right now. Price according to the market and you have a good shot at selling.

Be Flexible – Consummating a deal today requires flexibility beyond negotiating price. Sellers might be asked to close quickly, “hold paper” (provide seller financing) or satisfy some other unorthodox request. Don’t turn your back on an offer just because it requires extra effort. If that effort allows you to sell, it can be well worth it.

Market Like It’s Hot – In the winter months, a lot of brokerage firms cut back on advertising and marketing. Bad for them. Good for you. The less marketing they do, the more @properties’ print, online and grassroots marketing stands out…giving your home even more exposure relative to the competition.

BUYERS
Be Strong – Most sellers today are willing to give up a little on price in exchange for the assurance of dealing with a financially sound buyer. Take the necessary steps to demonstrate your viability as a purchaser. The more solid the ground beneath your feet, the more leverage you will have in the negotiation.

Know When To Stop Looking – It’s not uncommon for buyers today to view three times as many listings as buyers a few years ago. While this is certainly a function of available inventory, it’s also an indication of the paralysis by analysis that is dogging the market today. If you’re serious about buying in the next 60 to 90 days, focus your search on a specific price, location and features, and when you find the right home, put your energy into negotiating the best deal – not looking for alternatives.

Take a Long Term View – A great price doesn’t always equal a great deal. The next home you buy has to be one you can live in, enjoy and re-sell when you’re ready. So look ahead five or ten years down the road and ask yourself if you’ll be happy living there. If the answer is “Yes”, you’re home.

If you’re ready to buy or sell this winter, or if you’re simply looking for answers or advice, feel free to contact me anytime. And remember, I always appreciate your referrals.

Bank of America offers many programs aimed at helping first-time buyers purchase a home. They also work with other programs such as HPA and IHDA to help more buyers. These programs are meant to help low to moderate income buyers who lack the necessities to purchase a home.

America’s Home Grant

Offers closing cost assistance to qualified borrowers. This grant gives $2,500 towards closing costs for first time home buyers who are at 50% or below median income or if they are purchasing in a low to moderate income census tract. Also helps cover non-recurring closing costs.

Bond Loan Program

Under Bank of America’s bond loan program FHA first time home buyers can receive 3% of the required 3 ½% down payment. Borrowers do not have to purchase in a low to moderate area.

Bond Loan Advantages:

• Flexible qualifying requirements
• Competitive interest rates

203(K) Program

A 203(k) is ideal for prospective buyers that are interested in purchasing a home in need of repair and updating. Under the FHA Streamline 203(k), buyers can spend up to $35,000 of the loan proceeds towards repair. The FHA Streamline 203(k) is meant for properties that need little repair or updates.

203(K) Advanatages:

• As little as 3.5% down
• Loan based on the as-improved value
• Cash needed for repair is included in the loan amount

Home Purchase Assistance (HPA)

Bank of America works with the City of Chicago HPA program which offers down payment and closing cost assistance for buyers. This program gives qualified first-time buyers up to $40,000 toward home purchases depending on household income. Buyers do not have to repay the assistance if buyer lives in the house for the entire time the program requires.

Types of Housing:

• Single Family
• Condominiums
• Town home
• Small Apartment Building

Requirements for Applying:

• Pre-approval for a fixed-rate mortgage with a lender
• City of Chicago application
• Attend and complete pre-purchase homeownership counseling at a HUD-certified agency approved by the city.

Illinois Housing Development Authority (IHDA)

Bank of America also works with IHDA bond program which gives 3% of down payment to qualified buyers on conventional loans. This bond program issues tax-exempt and taxable bonds financing for multifamily rental developments.

In an effort to expand access to FHA mortgages and allow for the rapid resale of foreclosed properties, HUD has announced a temporary waiver of the 90-day flipping rule. The waiver takes effect February 1, 2010, and lasts for one year, unless otherwise extended or withdrawn by HUD.

The waiver is limited to those sales that meet the following conditions:

1. All transactions must be arms-length, with no identity of interest between the buyer and seller or any other parties participating in the sales transaction, including:

• Seller must hold title
• LLCs, Corporations and Trusts must be established in accordance with state and federal law
• No evidence of previous flipping within 12 months
• Evidence that property was marketed openly, such as via MLS, auction, FSBO
• The waiver is limited to forward mortgages and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program

2. If the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will apply only if the lender meets the following conditions:

• Significant work has been done to the home (documented by a second appraisal verifying that legitimate repairs and rehabilitation have been done to substantiate an increase of more than 20%); or,
• In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer; and,
• A property inspection must be provided to the buyer prior to closing. (The lender may charge the borrower for the inspection.) The inspector does not need to be FHA approved, but must have no interest in the property, must not receive compensation other than from the lender and may not be involved with the repairs recommended from inspection.

The complete text of the waiver — including what the inspection must include — click: Waivpropflip2010