The median sales price for Bourbonnais is $251,500. This has decreased 0.4% since June 2022, which was $252,500.  The average market time is 36 days. The median price per square foot is $144 compared to last year's figure of $134. This is an increase of 7.5%. At the end of June, there were only 31 homes actively on the market with only a 1.1 months supply of inventory. The list to sales price ratio is 99%. If you would like to discuss your home value, please contact me at 815.790.1646. 

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Bourbonnais Market Report for June 2023

There’s not much you can do about the location of your home, but that may be one of the reasons why your home’s value isn’t as high as you wish it were. What you can do is make sure other aspects of your property are desirable. When you’re selling your home, you want to meet as many homebuyer preferences as possible and keep them in mind as you search for your next home.

Noise – Traffic noise, basketball-bouncing teenagers, loud music, and construction are just a few things homebuyers don’t want to hear. Add more insulation in the walls, and replace single pane windows with sound-muffling double pane or storm windows.

Danger – A home built too close to a busy street, homes with scary guard dogs, and bars on the windows make homebuyers wary. Take Cujo to a pet sitter during showings.

High Maintenance Costs – You love your swimming pool and spa, but your homebuyer may not. Don’t make improvements that won’t resell well unless you really want them and they make sense for your home and area.

Luxury features in a starter home – If you’re selling a starter or mid-range home, luxury appliances and finishes are appealing, but homebuyers won’t pay extra for them.

Tacky neighbors – Yes, your neighbors can bring your home’s value down as well as up. Junk in the yard, peeling paint and obvious deferred maintenance can be off-putting to homebuyers. Get the other neighbors together and offer to help the homeowner, especially seniors on fixed incomes.

Among the criteria that lenders use to determine your eligibility for a mortgage loan is your debt-to-credit (DTC) ratio. According to Equifax, one of three major credit reporting entities used by lenders, landlords, credit card companies, employers, and others, debt-to-credit is the amount you owe across all revolving accounts compared to the amount of revolving credit available to you. This is one component that comprises 30% of your total credit score, and it includes your payment history, how many credit accounts you’ve got and what types of credit they are.

You can calculate your DTC ratio by gathering all your credit statements and dividing the total amount of credit available by the total amount of debt. This will give you your credit utilization ratio or DTC. ExplainsSmartAsset.com, credit card issuers look at your income, credit score, bankruptcy risk, and debt-to-income ratio to determine how much credit to give you.

Credit scoring companies also look at how much money you’re paying on your debt each month relative to your income. They don’t like to see DTCs any higher than 30%. The higher your balances are, the lower your credit score will be. You’ll also pay higher interest rates, making it more difficult to pay off debt.

Look at your credit cards and determine the DTC on each one. Pay down the cards with the largest balances to credit limits first. The lower your DTC, the better it is for your credit score, with the ideal being close to zero.

They make it look so easy on TV. Buy a house, fix it up, and resell it for a big profit. But that’s easier said than done. Here’s what you’ll really need to be a successful home flipper:

Cash – Most flippers pay cash for properties. You can get a loan, but you’ll need good credit to qualify for enough to cover the costs of both the purchase and resale transactions, renovations, utilities, homeowner’s insurance, and to cover unexpected expenses. You should have cash to cover your carrying costs throughout the timeline of the project and a tax plan to pay or defer capital gains.

Experience – Successful flippers follow a formula—an undervalued, distressed, or unimproved and dated property that can be purchased using the 70% rule. If you plan to sell the property for $500,000 after renovations, you should pay no more than $350,000 to acquire it, plus the costs to make repairs and updates, allowing you to make a typical profit of $67,000. If the property looks as though it will cost you too much to make it sellable at $500K and still make a profit, it’s not a good candidate for flipping.

Labor and Materials – Most flippers do the work themselves, but you may need skilled labor such as electricians and plumbers. Working without a license can expose you to fines and lawsuits for faulty construction. You must be savvy about the costs of materials needed, supply chains, and have the correct equipment and insurance to work safely.