So, you think that you know what your perfect home looks like?

I have learned that it is critically important for a Realtor to listen to the client describe the "perfect" home, but listen with "understanding."

What is heard from the buyer or rental condo client is "I want a newer building with up to the minute appliances and finishes." The first property that I recently visited with such a client resulted in conversation that went something like this:

"I know this is a brand new building, but eeeeeeew, I didn't like the unit! The closets are very small, and there is no dining room for me to arrange my pretty dining room furniture. It's all so OPEN in the design! And that kitchen/living room is rather small as well!"

"Well," I said, "this is the design trend of today's builders; the separated traditional dining room is out of fashion, and you are not likely to find it in a newer building."

The client nodded in understanding. What the client perhaps is really asking for is any age building that offers updated units, units that were designed with a separate dining room area.

No, this is not a case of "Buyers are Liars." More accurately stated, what the client THINKS he/she wants and is asking for is NOT what that desire translates into. The wise agent will ask lots of follow-up questions when interviewing a new client about their perfect home:

"You say that you want a newer building with modern kitchen and bath appointments; which is important to you - the age of the building itself, or the condition of the kitchen and bath?"

Assume nothing, and learn to know what the client wants before the CLIENT knows what he/she wants. Then explain to the client what he/she is really asking for. Light bulbs suddenly switch on, and the focus is clear on what this home search is really all about. It's far easier to travel down that path, instead of charging into every "newer" building in town and not matching the home shopper's vision.

If Ever There was a Time to Watch the Calendar, ...

$$$$$$$$$$$$$$$$$$$

We are running out of time; the generous $8,000 first time home buyer tax credit deadline for closing a transaction is fast approaching.

A deal must be closed by November 30 in order for the buyer(s) to be eligible for the credit. In a "normal" transaction with a straight-forward buyer/seller contract, conventional financing, no extended negotiating over home inspection items, the remaining six weeks before the program ends will be JUST enough time to earn the tax credit.

So if you, or someone you know, is hesitating or delaying for any reason about buying a home to earn the credit, time's a wastin'! I am ready to help any buyer who is qualified to purchase a home get the job done. Let's get started! I cover the City of Chicago, the North Shore of Chicago, and points beyond the North Shore.

Da Bears and Real Estate in Chicagoland

I don't know if anyone (especially real estate agents) has ever conducted a quasi-scientific survey on this topic, but maybe it's time to do so.

Every fall, every football season, Sunday open houses are gauged on how "groups" of home shoppers attend, despite the airing of a Chicago Bears football game.

Does it really matter to home shoppers that the Bears are playing yet another bone-crunching game somewhere? Many agents think so, and the more weight that is attached to a particular game, the more the impact on Sunday open houses. Taking it to the extreme, I know of agents who simply refuse to even bother having a Sunday open house if there is a Bears game sharing the afternoon time frame.

Today for example, I was doing an open house in Northbrook. Three hours, two groups of shoppers, and zero potential buyers for that property. Even the streets seem less congested on Sunday afternoons when the Bears are playing, be it the streets in the city or the suburbs.

Should Sunday open houses continue, despite Bears football game happenings? Sure. The open house accomplishes the meeting of agents and the public. Game or no game, the interaction of agents and the public will continue, even if it means missing a touchdown pass or two. (FYI, the Bears won BIG today, outscoring Detroit 48 to 24, and I didn't see one play of the game. Guess they don't need me!)

Another Reason to Buy This Year

According to the Sun Times newspaper, the Cook County assessed values on building that have more than 7 units have taken an extraordinary leap up. One building experienced an increase of 182 percent. The owners of these buildings will undoubtedly be passing on some of this increase to their tenants, once the impact of those increased assessments is felt in the coming year with a bigger property tax bill.

How Do You Find Me?

Let's face it; there are hundreds, no, thousands of Realtors in my general marketplace. Some are veterans, some are rookies. Some are excellent practitioners, some should quit the business and go do something else!

HIRE ME!

But this is all about me for the moment. I've been a licensed real estate professional since 2003, and have been learning more about the business every day since then. There have been good days, and there have been bad days.



The good days outweigh the bad days when I am busy with the work of helping one or more clients, because I know that I am doing a terrific job for my clients. Those I have helped are invariably grateful, and make a point to say so. Some have taken the time to write a gracious note of thanks to me. Those notes and kind words are so important to me, confirming to me that I HAVE been of good service to those clients.



So my predicament is this: how do other potential clients find me, and know that I can be of great value to them? Research tells us that the vast majority of people start their home search (if they are buying) on the Internet. So let's look at that for a moment. Yes, my presence is online. My broker company provides a basic website for me. I am blogging with 2 active blogs that deal with real estate. I pay a subscription fee to my national real estate organization to place my name and photo along side any listing that I have on the Realtor.com website. Without paying that fee, my listing will be on Realtor.com, but my connection to that listing is invisible. As a result, someone looking at that listing online will perhaps engage another agent to view that property, and my chance of developing a relationship with that person is nil. I recently activated a subscription to yet another online service that can put my name in front of the consumer, based on comments that I can post on various properties for sale that I have personal knowledge about. I'm trying to find YOU, so you can find ME!



Sellers of real estate tend to choose their agent by remembering a previous transaction with a local agent, or perhaps take the recommendation of a friend, or call the agent whose name appears on local yard signs. If a person had a good experience with an agent in the past, then it's a comfortable decision to enlist the aide of that agent once again. To choose an agent from visibility on yard signs is not always a positive result. Neither is simply taking a friend's recommendation.



So here I am, ready to go to work for YOU, and YOU, and YOU! Can we talk about your desire to move in the near future? "Where is your office?" is a question I often am asked. Answer: Winnetka, but that is not relevant to where I work. City of Chicago? Absolutely! I have handled transactions in multiple neighborhoods in Chicago: Rogers Park, Jefferson Park, Norwood Park, Lincoln Square, Roscoe Village, River North, South Loop, Logan Square, to name a few. Suburbs? Sure: Wilmette, Elgin, DeKalb, Lindenhurst, Des Plaines, Skokie, Evanston, and more.



If you have stumbled across this post on this blog, I know that you have "found" me. So now let's take the next step by having a conversation about how I can help you as a real estate pro who genuinely cares about my clients, and who thrives on success. I'll look forward to meeting you!

I'm Showing My Age (but it's worth it)

What a great surprise - one of the 1960's super folk singer-songwriters is coming to perform live in the intimate setting of Wilmette's movie theater.

December 13, 7 pm. All tickets $48.50.

If you remember Janis, you might be surprised as I was to learn that she is still out there performing. But fun to take in her show if you were a fan back then. Follow the link to the theater's events page, or call at 847 251 7424.

Appraisers - Why You Need to Be Concerned

Time was when appraisers magically appeared at a home that was under contract to sell, wrote up a report that usually had the appraised value match the contract amount, and the deal closed. Everybody went home happy.

But not so much any more. And with good reason.

With the mortgage melt-down last year, scrutiny was focused on every step of the selling process. The appraisal system was deemed inaccurate at best, and perhaps knowingly inept or frequently "fudged" at worst. So how does this appraisal thing happen anyway, and what does it mean to the seller and the buyer?

To keep it brief, when a buyer applies for a mortgage, the lender orders an appraisal to be done. The lender needs to know the true market value of the property, so that the lender is comfortable giving the buyer a loan on that property. It used to be that the lender could call on any appraisal company he chose to do the appraisal, giving the lender a healthy amount of control over the appraisal process. At least the lender had knowledge of the appraiser's work, work ethic, areas of real estate market experience, etc. But with the mortgage industry debacle came new rulings on how appraisers were to be selected for a property under contract. Suddenly the lenders had no ability to select the appraiser. Appraisers were being doled out to do jobs from a central control processor. And the lender was strictly forbidden in having any conversation with the appraiser assigned to a file, and forbidden in doing anything that looked like an attempt to influence the appraiser's report. The results were immediately disastrous. Legitimately disastrous. Appraisers who had no familiarity with a community or neighborhood or condo building were writing reports that mocked the meaning of the word "accurate." Transactions were falling apart because of it.

The real estate and mortgage community put up the cry - Fix This! And the pendulum has swung back the other direction somewhat. But we still hold our breath when an appraiser's report is delivered, hoping that the results look accurate, given the community, neighborhood and specific condo buildings.

When the appraisal report supports the purchase contract price, the transaction can do forward. If the appraisal states that the purchase price is more than the market value, the lender cannot issue the loan as requested. Depending on the property, the lender might demand more cash from the buyer, or suggest a renegotiated purchase price, lower than the first agreed upon price, to meet the appraisal report. Or the lender might deny the loan altogether.

This is why the buyer and seller must be making their best effort to agree to a selling price that is not over the market price. It will only mean a brick wall to overcome if a mortgage is part of the deal.

You are looking at my childhood home in Tyrone, Pennsylvania, named after County Tyrone in Ireland. When I lived there, it boasted about 7,000 population. I doubt it is much different now.

I found this photo on Realtor.com a few weeks ago. My old home is for sale! Price tag is $99,900. A steal. I think my parents sold it in 1966 for approximately $24,000.

Anyway, my point is this; I sent an email to the listing agent, asking a few basic questions about the property. I did not tell the agent that I used to live in the house.

I became very disappointed when it became apparent that agent did not want to communicate with me, answer my questions. I still have not had a response, and it seems I never will get one.

When you have a property to sell, make sure to ask your agent if he/she makes a habit of responding to inquiries from the public, let alone other agents. That's part of the job, right???

Rent Checks vs. Mortgage Checks

Another sign of the real estate market condition in these parts is the high volume of rental listings that we brokers are handling. Rental listings have typically been but a drop in the bucket of the total business done by a conventional real estate brokerage in Chicagoland. Not so much right now!

In my own office branch, a full 50% of our monthly transactions are now residential leases. That is a huge number for an office that is more accustomed to selling and buying homes in the higher price ranges.

Why is this happening? It is definitely a result of the housing market slowdown. Many folks cannot get a mortgage right now (credit score too low, not enough downpayment, debt to income ratios out of wack, have a house to sell before they buy but can't get a bridge loan). Others are relocating here from other cities and cannot afford to housing in Chicago, even with our depressed pricing. Others have sold their home and haven't found what they like to buy as the next home. Still others have been forced out of their homes due to foreclosure (or the threat of foreclosure and sold as a "short sale"). Everybody still needs a place to live. So what are the choices? Move in with your best friend (not always an option!), or rent.

The mortgage specialist in my office told me that she pulled 16 credit reports for leasing situations in one week. Again, that is a huge number for our office.

I have personally assisted more clients with a rental property this year than in all my years as a Realtor combined. And yes, there are lots of rental properties in the multiple listing system. Going on a rental home search is usually easier with a Realtor at your side, instead of going it alone. Case in point is a lease that I just wrapped up for clients, a difficult situation because it is a condo unit with an association and property management company that put many demands on them. Because I am so familiar with condo operations, I was able to guide them through it, anticipate the problems, and put out the fires that did erupt. The cost to a client for my help with a rental search? $0.00 if it is a MLS listed property. The listing brokerage shares the commission to my company, paid by the owner of the property.

So if renting is in your future, dust off your checkbook, boost your credit score where possible, and give me a call!

Home Inspectors I Have Known and Loved

OK, you all know that when purchasing a home, you really need to hire a licensed inspector to examine the property for flaws that either compromise safety, or indicate a major cash outlay in the near future for the buyer of the property.

Just like Realtors, inspectors come in all varieties and in all levels of proficiency. I have seen the good, the bad, and the ugly in inspectors. The good ones are a joy to observe; they move through the quagmire of a property, inside and out, and report to the client the condition of its components. Nothing more, nothing less. Want a radon test kit left at the property? Today's inspector should provide that service. Test for gas leaks? Yes. Test outlet circuitry? Yes. Test walls with a dampness meter? Yes. Test window and door operation? Yes. Climb on the roof for an accurate report on the life expectancy? Yes. Go into the attic to check for water stains, mold, animal infiltration? Yes. Test all the appliances, even though they might be dirty and unpleasant to navigate? Yes. Offer opinions on how the condition of the property aligns with the client's future plan for the property? No, no, no; that is the Realtor's responsibility. And finally, the inspector offers a full report to the client, and whomever else the client instructs the inspector to include.

The bad ones can minimally cause the client to come to inaccurate conclusions about the property that is being inspected, can morph into a 4-hour encyclopedia of how all house systems function, can fail to even locate a simple light switch on the wall ("you better check with the owner about this situation!!" ), can fail to point out a basic flaw in the property, can inflict undue panic and even fear into the heart of a client, and thereby fail to gain the respect of the client's Realtor.

Any inspector should want to perform fairly and with competence so that a real estate agent might recommend that inspector to other clients. Certainly one agent can bring many more new customers to that inspector than does the one client of the inspector. The Realtors are interfacing with dozens of potential buyers, while the one customer is interfacing with perhaps 1 or 2 possible property buyers. An inspector's business card goes in one of two places with me: in the client's file as a good contributor to the transaction, or in a business card file with a handwritten note about my disappointment in that inspector.

When I recommend an inspector to a client, I do so with the intention of getting that client a fantastic home inspection, done with professionalism, courtesy, thoroughness, honesty, and a timely report that is promptly delivered to the client. The inspection is done within the boundaries of an inspector's mission: to report on the condition of the property. Acting as a Realtor, I personally gain nothing from recommending an inspector to my client. Indeed, the inspector might point out problems that cause legitimate concern to the buyer, and result in the termination of a transaction. Believe me, it has happened on many occasions! But I welcome the inspector's results that cause a contract to "fall", because it means my client has been saved from a future, difficult and potentially expensive ordeal. It's all about the client, folks.

And I have also noticed that a client instinctively knows when the inspector experience has been a good one; the client might speak enthusiastically after the inspection is completed, on how well the inspector did his job, REGARDLESS of his findings. I have one client couple in particular who went through three, count 'em, THREE inspections with the same inspector before they found a home that seemed to pass the inspector's thorough examination; they didn't buy the home with systemic mold involving the dryvit (whew!), they didn't buy the home with the suspect attic insulation that might be contaminated with asbestos, but they DID buy the home that had nothing more to be concerned about than the height of the furnace vent on the roof. To this day, that client will rave about the inspector, how he prevented them from buying into a messy situation. Keep in mind, that inspector caused the clients and me to get back into the car and seek out/identify/negotiate a contract and involve the real estate attorney a total of three times. Did they mind this additional time and effort? No. The inspector was hired on my recommendation. I rest my case.

If You Think It, They Will Come.

Typically, August in Chicagoland is a verrrrry slow real estate market. Everyone in the industry seems to be on vacation, or taking a child to college, or shopping for the latest and greatest backpack for their students.

But me? Not so much. I dared to think "maybe I'll start getting busy again in September" a few days ago. And suddenly I am juggling several very active clients. It's that Law of Attraction principle. I'm here to tell you, it works. I started getting phone calls and emails from past clients and new clients to get out on the streets to find a piece of property to buy, list their home for sale, and from would-be customers who want to find a rental home to lease.

I am to the point of putting up a white board to jot down the names of these many excited clients, rather than lose the highest level of consciousness about each one of them.

So I must stay focused on my good real estate karma, and stay busy with LC, SS, TA and WA, CM, and JW and SM. Thanks to all for keeping me focused and productive!

Mars and Venus Buy a Home

Now this is something a Realtor could have guessed, based on field experience; but it is very interesting to read a seemingly valid survey on the topic. **

According to a news story that I read today in the Illinois Association of Realtors weekly web mag....



* Some 70% of women decided on the house they wanted to buy on their first visit to the home.
Men? Only 62% knew on the first visit that they had found nirvana.



Yep, I've seen this time and time again. In fact, it has been my experience that the lady of a couple realizes the good match of a particular house much sooner than does her male cohert. Multiple repeat visits to the property are usually necessary to earn the "buy in" of the guy. The lady is likely to be giving him a running sales pitch as they tour the property, pointing out all the positive aspects of the home. He is responding "Yeh, but ...



* The right house is found, but considered unsafe (for whatever reason) - how does that resonate? 64% of the gals responded that their interest in the home would cease. Only 51% of the guys indicated that an unsafe house would deter them from making a purchase.



I suppose this is very easy to understand and accept; fear of personal safety and the safety of all family members is usually a strong instinct of the nurturing woman/mother in a family unit. I had one female client describe this as the baby carriage test; "Would I be comfortable pushing a baby stroller around this area?" The man/father is more likely thinking in terms of "No problem, I'll just .... .... to keep myself safe." Should the gals get busy and earn a black belt in Karate?



* Having family members nearby is more important than being closer to my job: girls said yes 55% of the time, while guys said yes only 37% of the time.

*Again, not surprising that the woman/mother feels comfort in having family members close by, as opposed to being a block from her job. I had a client who started her home search by stating with great determination that she would not be interested in buying a home near her parents, that being convenient to her job was the highest priority. Guess what she bought? An older home that needed much renovation, was giving her a one hour commute to work, but was only 3 blocks from her parents' home.



All of this is mildly entertaining to read, but there is a lesson to be learned from the study: having an experienced Realtor guide a couple through the home search can make the conclusion a much happier one. The Realtor is going to recognize these differences between the 2 members of a relationship, and will know how to coordinate their wishes and needs to keep their search on track and also have the couple learn to compromise their personal agendas for the common good. And that's not always easy.





Just last summer I was helping a couple who were determined to live in a specific town, and in specific parts of that town. Once I had surveyed the market in that town, I felt they would have to expand their search border to find a good fit in a house. I visited a particular house on the weekly Tuesday Brokers' Tour without the couple in tow, and knew it fit their needs exceptionally well. It was in their chosen town, but sooooo not in any of the areas they preferred. But it offered them the space, yard, "newness", and location they so badly needed. She would have a 5 minute ride to work; he would walk 1 1/2 blocks to the commuter train he needed. I knew it was right for them immediately. At the first visit, the woman knew it as well. The husband fought it, and had to be exposed to the house multiple times before he relented and made an offer to purchase it. Yes, they bought it, they moved in, invited all the family for parties asap, and promptly became pregnant with #2. They plan to have lots and lots of kids, and now they are off to a good start. This was a particularly rewarding transaction for me.





Home shopping is fun, it's demanding, it's emotionally wrecking at times; getting you through it with minimal stress, and a happy result is the Realtor's job. How does your agent measure up?

** survey conducted by telephone by franchiser Coldwell/Banker, results published in April 2009. See link to press release.

Up Close and Personal with an Appraisor (and why do we want to do THAT?)

I had the pleasure of chatting with an appraiser at my office a few days ago, at the invitation of a Realtor colleague. "Ok, so a lender gives you an assignment to appraise a property for a mortgage loan. What do you do?" was the question we posed to him.

His answer was animated fascinating. One of the many twists and turns the real estate and mortgage industries have experienced most recently is a very tight control on how appraisals are ordered and performed. And the result has been been 100% effective in meeting the goals of said controls. I will certainly concede that in years past, appraisals were submitted to a lender with a wink and a nod to get a mortgage underwritten.

No more. Indeed, the pendulum had swung too far in the opposite direction. Only a couple weeks ago a bit of reason was injected back into the process of appraisals for home purchases. The details of this topic will be left for another day. What is important to know now is that as a buyer, you will be asking a mortgage lender for a lot of money to buy a property. The lender wants to know that you are not over-paying for that property; the appraisal is the measure of the property's current market value.

Until the rules were recently modified, appraisers were being sent to a property without any regard to the appraiser's familiarity with the surrounding community. In an attempt to keep the appraiser "pure" and without influence, the listing real estate agent was not permitted to provide opinion or comparable properties to the appraiser. In the worst case scenario, an appraiser from 60-100 miles distance from the subject property would be sent to appraise a property, having to research and understand the neighborhood and community to do a correct appraisal, even though the appraiser might never have set foot in the community prior to the appraisal order.

The end result of that situation was that appraisals were becoming grossly incorrect and derailing property transaction closings. Now the appraiser assigned to an order is to be familiar with the area; in addition, the listing agent is permitted to offer multiple comparable sales to the appraisor to provide solid background information. This can be invaluable assistance to the appraser. And ultimately, a fair and correct appraisal will go far in putting a buyer into the house of his dreams.

These days, anything that can be done to stimulate more activity in the real estate industry is a good thing, don't you agree?

Uncle Sam Wants to Give You a Gift!

This does not happen very often, readers, and it won't last forever, so let's remind ourselves (and somebody you care about) about this fabulous program for first-time-home buyers.

If you have not owned a home in the past three years, and fall within the household income limits, you have the distinct pleasure of, and extreme joy in reducing your income tax bill by as much as $8,000 come next April 15.

The catch? You have to find, purchase, and close a home no later than the last day of November, 2009. In reality, that leaves you about two months of home shopping time before the calendar cuts you off.

Because the closing for a home purchase can be no later than November 30, 2009, your offer to purchase a home must be accepted by the seller and your mortgage application process started no less than 4 weeks prior to the scheduled closing. Unless, of course, you are paying for the property with cash, no mortgage. The timing of your actions are crucial in this process; the mortgage lenders are taking longer to get a loan approved and ready to close than they used to brag about, due to constraints recently built into the system. The major culprits in this scenario are the changes in appraisal rules and the new Truth In Lending requirements imposed on lenders. But those are for another day.

And the media has been telling you the truth; this is a WONDERFUL time to buy a home, due to the reduced values of homes in our market. In theory, if you were to purchase a home this year, and own it for at least 3 years, you have an excellent change of owning a home with vastly improved value, and thereby more equity in your financial portfolio!!

So if you have been mulling over the question of what to do about buying a home this year, are wondering if your finances allow you to secure a home of your own, let's talk about it. I can help. I LOVE helping clients save money!

What's Up on the North Shore? Sales!

My fellow agents are sensing an improvement in sales activity over the past two months or so. And the sales seem to be across all price points.

In December 2008, along the immediate North Shore communities of Evanston, Wilmette, Winnetka, Skokie, Glenview, Kenilworth and Morton Grove, a total of 84 residential properties went under contract.

In January 2009, a total of 117 properties went under contract.

In February, 117 again.

In March, 209!

In April, 224!

And in May, a whopping 323! Prices ranged from a foreclosure condo for $60,000 to a still-pending home listed at $5,200,000.

The tide seems to have turned in my home office area. I have even had to tell several buyer clients that properties they wanted to visit had already gone under contract. That has NOT been the case for at least a year prior to now.

I'm keeping my fingers crossed that this trend will continue. The real estate market needs to get more of the excess inventory sold in order to stabilize the prices and give more hope for the future of home valuation. The mortgage money is readily available for qualified buyers; and the Federal tax credit for first time buyers is certain a huge boost to someone's decision to make a purchase this year. In short, good things are happening. Hurrah!

Agent A or Agent B: Who Should List My House?

If you could be a fly on the wall, listening to a coffee break group of Realtors, you might often hear "war stories" of how they lost a chance to list a property because another agent promised to sell the owner's home for more money than any other agent did. It's referred to as "buying a listing" in the trade.

There is a basic fallacy involved in such a situation: no agent can "make" the buying public pay more for a property than any other agent. The real estate market does not place price stickers on the side of a house or condo building, expecting the consumer to pay the marked price. Just the opposite is true: the CONSUMERS will determine the selling price of a property.

When an owner decides to sell his/her home, it is common for that owner to meet with one, two, even three agents to determine which of them is best prepared to list and sell the property.

For the owner to decide which agent to hire, based on the anticipated selling price that each agent might promise to deliver, is faulty logic. Why? Again - the CONSUMER will determine the value of the property, and therefore its selling price. But far too often a seller chooses Agent A over Agent B, because Agent A states "I can sell your house for $500,000!" Agent B, however, states "Your home WILL sell for $470,000." So the owner thinks "Hmmmm, this seems to be obvious; I should hire Agent A because I will gain that extra $30,000 by doing so."

This is how that listing typically plays out; owner hires Agent A, and lists the house for $500,000, perhaps even $510,000. The first week on the market, agents come to the brokers open house to view it, and report back to their buyer clients "This house is overpriced. We'll wait for the price to be reduced." The first public open house attracts some curiosity seekers, but does not generate an offer because the price is too high for the property's true value. One week passes, then two, then three, and the private showings have dried up. Agent A says to the owner, "We should consider a price reduction! Nothing is happening!" The owners says "Gee, ok, but not a big reduction, because we expect to sell it for the $500,000 you promised us." So the price goes down by $8,000. Another week, or 2, or 3 go by. Repeat. And so on. A highly qualified buyer who loved the property made a reasonable offer, and was rejected by the seller. The buyer found something else to buy the next day, and closed on it in 3 weeks.

Eventually the price is reduced to $469,000, and finally an offer is made on the property. It sells, finally, for $459,000 after six months on the market. The owner in the meantime has been paying the property taxes, utilities, insurance, mortgage, fixed the hole in the roof, the leaking water pipe in the front yard ($4,000 repair bill), and so on.

When the selling price is recorded in the multiple listing service, the agent who did not get the listing looks at the $459,000 number and can only sigh.

TWITTER in Chicagoland

Astounding what I saw online today in the Sun-Times; of all the cities in the world, Chicago has the third highest number of people using Twitter.com to communicate online. Only London and Los Angeles have more users than Chicago does. Go, Chicago! Even techy Seattle did not beat us.

My tweet-feed is automatically loaded onto my blogs, so follow along if you like. (Geez, I have to remember to keep it interesting, don't I?)

Home Values Just Keep Getting Better!

Shopping for a new home anytime soon? Aren't you the smart one! The prices keep falling in these parts. I noticed today that a nice condo in Evanston that was selling due to a corporate relocation has yet again dropped in asking price. It started on the market in August 2008, at $205,000. Today it is going for $166,000, nearly a 20% reduction. Similar units in that building (on Central Street in Northwest Evanston) were selling in the $220,000's back in 2006.

Values are very good for buyers right now. The key to buying well is to buy "smart." First things first - talk to a lender to find out exactly where you stand on getting a mortgage if you need one. Yes, there is mortgage money to be loaned, IF you are qualified. Condo loans have become more difficult of late, with most lenders requiring at least 10-20% downpayment from the buyers. Smaller downpayments are available if the building you are fancying is FHA approved; those loans require only 3 1/2% down. And today my in-house mortgage expert sent out a message that my company's mortgage division can now offer 95% financing through a special program on conventional loans.

The second step in buying "smart" is to find and work with an experienced agent who can guide you through the process of home buying, whether it is a condo, a co-op, or a single family house. The expert agent will be able to research pricing history for you, the background of the specific property you fancy (is the seller in pre-foreclosure, for example), any local issues that impact your decision, local grapevine chatter amongst the Realtors in the area that can shed light on your decision making, and more. So how do you find that good agent? Recommendations are King! Don't just react to fancy ads and boasts of the volume of listing any agent has sold in the past. What kind of service does the agent provide? There's the criterion you need to choose a Realtor!

And finally, look to your agent for guidance in selecting a terrific real estate attorney, home inspector, and other local service providers to make the final days of your transaction and moving experience a good one. Homebuying is typically stressful; that's a given. But with the right help, it can also be productive and exciting.

The Death of Newspaper House Ads? You Betcha!

("Let's see, how many of these house ads match our price range, and bathroom requirements, and are in our kid's school district, have lots of inside pictures of the house, and can be ready without a magnifying glass?") ANSWER: NONE

A common point of discussion at my office sales meetings over the past couple years is the usefulness of local newspaper ads for our property listings and open house announcements.

The debate is this: some agents feel that the local newspaper ads are absolutely necessary to maintain a presence in the local real estate market and the consumers' minds. The managing broker (our boss) and the real estate company (Baird & Warner) are making decisions that are shifting our advertising resources AWAY from print newspapers and INTO the internet.

The reality is indisputable; most buyers start their home search on the internet. Most buyers have already done much research into a home search ONLINE before they set foot in an open house, let alone contact a real estate agent. And the demise of the traditional newspaper is either on the horizon for some papers, or already here for others. And for those that are still functioning, their size and volume of advertising is dramatically down. Our local weekly paper, published by the Pioneer Press, has shrunk to a mere shadow of its former self. Indeed, the Pioneer Press organization has recently SHUT DOWN several of its northwestern community editions! The Chicago Tribune, the historic daily paper, is also unrecognizable to me any more. The world has shifted to online news and advertising. Period.

So, why is this important in the grand scheme of things? Because most sellers of homes still want to see their property in a print ad in a newspaper; they think it makes a difference in finding a buyer. The print ads are very costly, and in fact provide very little results to the seller or his listing agent/broker. Put that same property into the MLS with a full service brokerage, and that property will find its way into dozens of websites that are searched daily by home seekers. If that home seeker sees an online ad for a home that provides the listing agent's contact information, the home seller has just had the best possible exposure - an interested buyer speaking directly with the listing agent.

It's time to let go of the notion that newspaper ads sell homes and tape-playing Walkman's are the best way to take your favorite music with you.

Hip, Hip, Hooray! Buy a Home for Tax Breaks Today!

The potential for a revitalization of the residential real estate market has been given a tremendous boost with the passage of the American Recovery and Reinvestment Act, to be signed into law on February 17 by President Obama. Here are the criteria for earning a tax CREDIT, courtesy of Uncle Sam, meaning you actually will experience your federal income tax being reduced by the appropriate dollar amounts detailed below. Consider it a "discount."

Who? First-time purchasers only. You are a first time buyer if you have not owned a principal residence in the 3 years prior to the purchase. There is an income cap of $75,000 for individuals, or $150,000 for couples to receive the maximum tax credit. There is a phase-out above those caps up to $95,000 and $170,000 respectively. Caution - you must continue to own the home for three years, or else be required to return the entire amount of the credit when you sell the home. Ouch.

What? Any single family residence (including condos, co-ops, townhomes) that will be used as a principal residence.

When? Any principal residence home purchased between January 1, 2009 and December 1, 2009.

How? Just do it! The credit will be a maximum of $8,000 (or 10% of the cost of the home, whichever is lesser). So if you purchase a $300,000 home, and otherwise qualify for the tax credit, Uncle Sam could credit you the $8,000 (because 10% of $300,000 would be $30,000, and obviously the $8,000 is the less than $30,000).

If you have been undecided about making that home purchase until now, waiting to see what Congress would do, wait no more. Contact a local Realtor and start your search right away. Realistically, you have 9 1/2 months to find, negotiate, and close on a home.

I will be watching industry news reports on the trend of homes going under contract over the coming weeks and months, looking for a positive turn in home sales. Stay tuned.