Home Selling in 60649>Question Details

Wantstosell, Home Seller in 60649

How can we tell if we're underwater on our mortgage in Chicago (60649). We owe less than $100/SF and it's rehabbed. Want to move/upgrade.

Asked by Wantstosell, 60649 Thu Feb 3, 2011

Help the community by answering this question:


You have to figure out what the current value of your house is. You can do this with a CMA or an appraisal. A CMA is performed by a Realtor, where an appraisal is done by an appraiser. A CMA is typically free, while an appraisal will cost you $250 or more. Once you have a reasonable estimate of value, you should contact a real estate attorney to calculate your closing costs. Lots of people think they aren't underwater if they owe $100K and their home values out at $103K. That scenario is fine if you are trying to refinance though certain programs, but if you want to sell the property without bringing money to the table, you need to know what your "break even" point is.

The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
3 votes Thank Flag Link Fri Feb 4, 2011
Lots of good advice here.

A CMA would be a good indicator of what the market would pay today for your home. Make sure the agent is familiar with the South Shore Market. Ingrid raises a good point about the nuances of the South Shore. There are large discrepancies in how the market reacts to upgrades and rehabs, and how recent the rehab was completed. What might be customary finishes in one market, may be less desirable in another. Furthermore, South Shore has large discrepancies in value depending on specific location. A good example would be trying to compare a home in the Jackson Park Highlands to one at 78th and Exchange.

Also remember that there are additional cost to selling. You need to factor in things like transfer taxes, tax escrows, brokerage commissions, etc. This can easily add up to 8% of the sale price. Once again, a good, local agent can help you understand your specific circumstance.

Best regards,

Wayne Beals
Keller Williams
312 77BEALS
312 772-3257
Web Reference: http://WWW.WAYNEBEALS.COM
1 vote Thank Flag Link Fri Feb 4, 2011
The main question I always ask is, "When did you buy the property?" This is usually an indicator for me of what to expect. If the property was purchased within the last five years at market price, then you could be upside down in your mortgage.

Ultimately, you should ask a local realtor to do a CMA on your property. You should also find out what other rehabbed homes are going for in your neighborhood. Keep in mind that most of the rehabbed homes, especially in the South Shore/South Chicago area, are recent rehabs (less than a year). This type of variable will make a difference in how the CMA is analyzed.

Hope it works out for you,

Ingrid Ermon
Servicing South Lakefront Communities
Keller Williams Realty CCG
716 E. 47th Street
Chicago, IL 60653
Cell: 312-659-0611
Office: 773-536-8526
Web Reference: http://www.ingridermon.com
1 vote Thank Flag Link Fri Feb 4, 2011
- Get an agent to do a CMA, OR
- Do a house search for your neighborhood looking for similar houses (size type bedrooms, baths, etc) and see what they are listed for. That will give you some idea at least. Obviously you won't know for sure but its a starting point. You can look here or realtor.com
- Once you have some idea then maybe call an agent sot that you aren't completely in the dark
Web Reference: http://www.aic-chicago.com
1 vote Thank Flag Link Thu Feb 3, 2011

We need to have an appraisal done on your property. Consult with a professional realtor and ask them to perform A CMA or comparable market analysis to see where your estimated value stands.

Best of Luck to you
0 votes Thank Flag Link Mon Mar 7, 2011
Hi there!

In order to accurately determine the current market value of your home (to see if the market value is less than what you owe and find out if you are underwater), you should contact an experienced real estate agent to help you. A real estate agent with knowledge of the area and access to connectMLS will be able to research recent sales of properties similar to your home and assist you in assessing the current market value and in evaluating the practicality of making a move in this current market - and in formulating a plan to do so OR a plan to make yourselves more able to do so in the near future.
If you do not have a real estate agent to help you, please do check out our website - we have many wonderful agents who would be happy to assist you in evaluating your situation. Check us out here:
0 votes Thank Flag Link Mon Feb 7, 2011
As previously said in other posts, a CMA by an agent familiar with your area will help you determine the market value of your home. They can then also prepare a net sheet that will estimate the net proceeds after selling (net sheet will also factor in agent commission costs and other closing costs). However, in this market you will also want to get an idea of home prices in the neighborhood or community where you want to move to. In making the decision to sell your home or not, you want to make sure that financially it makes sense and that you are financially prepared. Speak with an agent but also a loan officer to make sure you qualify for a loan and how much home you can afford.

I would love to work with you. Feel free to contact me.

Millie C Lumpkin, SFR
Century 21 Pro-Team
Email: mlumpkin@c21proteam.com
Phone: (708) 213-6141
0 votes Thank Flag Link Fri Feb 4, 2011
That area got hit pretty hard, and depending on which area it is, will depend on how bad the market got for you. It also depends on when you bought your place. If you bought it in the late 90s you could be fine, if you bought it in '05, your probably not in good shape. The best things for you to do is to get a CMA from a few agents. This will give you the best idea of what your property is worth.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes Thank Flag Link Thu Feb 3, 2011
I would recommend you contact a couple of Realtors and get CMAs on your home. Appraisals are good, but they won't tell you how your can sell on the market compared with others. If you know how much you could potentially get for a home, you will know if you are underwater or how you can move on. Keep in mind, buying now, you will buy at the lowest level, which will give you faster equity and pay less for the next 30 years or so.
0 votes Thank Flag Link Thu Feb 3, 2011
Get an appraisal!! Then measure that with your mortgage. Most people are under water with the cost to sell.
0 votes Thank Flag Link Thu Feb 3, 2011
The 60649 zip code covers Roseland, South Chicago and some parts of South Shore. An agent would need the exact address. Room sizes. Layout. Is it a brick or frame? Would need to see what else is for sale in the immediate area. Are there many homes for sale in the area? Are there many surrounding foreclosures? There are so many factors that determine value and possible market time. I would say to locate a agent who is familiar with your location and have them give you an opinion of value. You can also have an appraisal done.
0 votes Thank Flag Link Thu Feb 3, 2011
Hey "Wantstosell",

The least expensive way is to have a couple of sellers agents put together a comparative market analysis.

This can be done in 2 ways: we can go to your place to consider the upgrades & make adjustments accordingly, or, we can simply compare by description, i.e. # of beds, # of baths, room, etc...the former being the preferred method.

Start with the agents that responded to your inquiry right here on Trulia, myself included. There is no charge to you for this service. This way if you decide you do want to move forward & sell you have already done your homework & have hopefully found the agent you want to work with. Make sense?

Good luck!
0 votes Thank Flag Link Thu Feb 3, 2011
You need to have an agent or two do a market analysis to see what the value might be. If you bought around 2005ish you may have a problem, but let me know if I can help.
0 votes Thank Flag Link Thu Feb 3, 2011
Home Seller,

The best way to tell is to have an appraisal done on the property. The appraiser will determine the fair market value based on recent closed comparables. You can also have a Realtor do a CMA on the property and provide you a Net Equity sheet with an estimate of closing costs minus the amount you owe to determine if you will walk away owing or with a profit. Based on your $ per sq footage you said, you may be in a good position to sell. If you have any other questions, feel free to call me.
Web Reference: http://www.LachelHomes.com
0 votes Thank Flag Link Thu Feb 3, 2011
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