Movin With Susan

Evanston Offers Modern Way to Report a Problem

2012-03-20T20:35:00.000-05:00

According to the City of Evanston's seasonal news magazine, "Highlights," residents can now report minor problems they spot around town via the internet and their smartphones.

It's a app called "See-Click-Fix" (found at www.cityofevanston.org/311). It is a free service to residents. Finally, something for FREE in Evanston! Hurrah!

The city has an account with the app provider, and monitors the postings that come in from Evanston to direct the problem to the correct city department: streets, forestry, etc.

No longer is it a hassle to report a treacherous pothole you narrowly avoided, a broken traffic signal,a tree branch that has fallen onto a busy street, and the like. So be a good citizen, pull out your smartphone or internet tablet, and "call it in."

ComEd Is Giving Away Big Money, Really!

2012-03-20T20:33:00.001-05:00

Time for a new clothes washer? Have you been promising yourself to get rid of that cranky old second fridge or freezer in the basement?

Your timing couldn't be better! The Chicagoland primary provider of power is giving you incentives to "get off the fence."

Earn a $50 check for simply scheduling a pick-up of your old WORKING fridge or freezer. Go to ComEd.com/FridgeRecycling, or pick up the phone and dial 888.806.2273. Be sure to use this special code to earn the $50: FFCW01.

Even better is the $75 that ComEd is promising as a rebate when you purchase one of their specified ENERGY STAR qualified clothes washers. Check that offer out by going to ComEd.com/ClothesWasher.

2012-01-30T13:45:00.001-06:00

The City of Evanston has announced a neat service that makes it far easier to report those minor annoyances that come into our life from time to time: a nasty pothole that just opened on your grocery shopping route, some irritating graffiti that was sprayed on your garage door last night, or that malfunctioning traffic light at a very busy intersection.
Instead of grumbling about it and hoping somebody else takes note of the problem, now all we have to do is pull out our smartphone or tablet, open the free application known as SeeClickFix, and send off the report. These reports are monitored and delivered to the appropriate city department: streets, forestry, recreation, etc.
The free app can be downloaded from this web address: cityofevanston.org/311

How the Housing Market in Chicagoland Affects Seniors

2011-12-18T16:19:00.000-06:00

It has been a familiar route for so many homeowners over the years: build equity in the property where you lived for so many years, then sell it for a handsome profit so you can move into that lovely retirement community you had your eye on for so long.

But what if the family homestead does not sell?

Without deep pockets to otherwise fund the right to take up occupancy in that senior lifestyle home, the average senior homeowner cannot make that move.

A high-profile case in point is The Clare at Water Tower, a seniors-only project that launched in 2008. It has unfortunately been forced to file bankruptcy recently, due to lagging sales. The folks who have already moved into the complex will be able to continue in residence, although they will apparently have many empty units around them while waiting for yet more buyers to step up and move in.
It is partly an issue of being able to sell the family home, but likely it is also a matter of having to let go of all that loss in equity in the family home. Any home can be sold in this market (Chicagoland), as long as it is priced according to what the buyers are willing to pay for it. Nonetheless, it is hard to swallow such large equity losses, when the seniors reflect on what their home was worth some 2, 3, 4, or 5 years ago.
It makes the decision a bit harder, perhaps, but it can be done.

What a Dedicated Realtor Offers the Client

2011-12-13T19:18:00.000-06:00

Today my local MLS rolled out a much-enhanced research and report tool to provide unparalleled data to aid the agents and their clients. I spent two hours in webinars today to learn about the scope of this new tool. Being in the Chicago area, the clients are sometimes needing assistance in the neighboring states of Indiana and Wisconsin. This new tool allows research into those areas as well.

Some of the research allows an agent to drop subscription-based services, sometimes unaffordable to every agent. The playing field has now been significantly leveled for any and all agents who invest the time to learn and use the new system. I am pasting in a brief summary from an announcement flyer from the MLS to provide the reader a notion of how powerful this research tool truly is.

Map locations and see what is nearby
Identify market potential
Locate neighborhoods with particular characteristics
Analyze listing activity (Active, Pending, Sold & Expired) by zip code or neighborhood
Query locations that meet geographic or attribute criteria
Conduct neighborhood analysis and side-by-side comparisons
Use key market indicators: foreclosure, property photos and listing information
Compute route distances and options through multi-point and one-click driving directions
Link from map or database grid to images, property detail & more

Buying or selling property in the Chicagoland area, there is now even more reason to utilize a real estate professional. Don't go it alone!

"Accidental Landlord" - an accident waiting to happen?

2011-12-10T00:16:00.001-06:00

It has become more commonplace for a private homeowner to unexpectedly find himself (gender neutral for this writer's purpose) playing the role of landlord as a result of the difficult selling environment in real estate. This happens because the property owner needs to move on to a new job, or some such compelling reason. When the home sits empty, unable to find a buyer, the "Plan B" is dusted off and presented to the owner: RENT IT! Get some revenue stream started with the property!

And so this home that perhaps was on the market for SALE, now becomes a home on the market for RENT. There are two sides to a lease arrangement: the landlord's side, and the tenant's side. Each has its own set of challenges, thrills, and every other emotion in between. Most Realtors will tell you that they are handling many more home rental listings over the past 3-5 years than they ever imagined they would. I include myself in that statement. I have represented both landlords and tenants.

I want to keep my posts brief, so this one will put forward one caveat for would-be tenants who are searching for an appropriate rental property. Do whatever you can to feel confident that your landlord is not having mortgage difficulties on the property that you intend to lease. Or at least be prepared to move with perhaps only 30 days notice once you do move into the property. Unwittingly, tenants can sign a year lease, move in, and unceremoniously be forced to vacate in the first month because the owner is in pre-foreclosure and the bank has earned the right to take the property back. This is exactly what happened to tenants in a downtown Evanston condo last year, folks who were referred to me to rescue them and find an immediate replacement rental in a matter of days. Yes, I helped them find a wonderful new rental home. The agent who rented the condo to them had some unpleasant consequences, I was told. My office sales manager has repeatedly warned us agents to be diligent when working with rental clients (or landlords); "Check the status of that property!" We Realtors are charged with taking every precaution to protect our clients' interests, and that includes not getting kicked out of a rental property before the term of the lease ends.

When looking for a rental home, you must do your homework on the owner of property, regarding the mortgage status. There are websites online that promise to report on a landlord's mortgage status, for a subscription fee. On the other hand, you can determine that information for yourself, free of charge, if you are looking in a community that has public website access to county records, such as the Recorder of Deeds and the local Circuit Court. Foreclosure is a legal process, and foreclosure lawsuits can be tracked online here in Cook County. Or, you can put that task in the hands of your favorite Realtor, who will take care to show you only properties that are not tainted by the threat of foreclosure.

This is just one more outcome of the whole housing/mortgage crisis in America, but at least you can manage it by taking precautions to protect yourself.

A SMALL HOLIDAY GIFT FROM FANNIE AND FREDDIE

2011-12-07T22:47:00.001-06:00

Just in time to perhaps give distressed homeowners a chance to enjoy the holiday season, Fannie Mae and Freddie Mac have announced that they will not evict any affected foreclosure-victim families from their home (single family and 2-4 unit properties) from December 19 through January 2, 2012. It's not much, but at least the holidays can be spent in familiar home surroundings.

THE LONG SUFFERING SELLER SYNDROME

2011-12-07T09:55:00.001-06:00

It has happened again; I watched a very nice single family home sit on the market for 8 months, from early April of this year, during the prime selling season of Spring and Summer. It was not my listing, but I had visited the property since it was very close to my own home. I thought it was overpriced from the first day. A home is worth what the market is willing to pay for it; that's just the way it is. I don't know if that original list price came from the seller or the listing agent, but the end of the story was predictable. That seller carried the cost of ownership for 10 long months, watched the neighboring homes sell over the summer, and went through the stress of multiple price reductions in an effort to attract a buyer. So this listing closed this week, for 17.3% under the original list price. Factor in the real estate taxes the seller had to pay, insurance, etc., it makes me sad, literally sad, for the seller. This was not a short sale, not a distressed sale in any way. Please make certain your list price is the RIGHT price, the price at which it will sell. There is no such thing as "let's give it some room for negotiation" option in this market, readers. There is far too much on the market for the buyers to pick from, to make them want to negotiate with a seller whose price is so far off the mark. Want to sell your home? Pick the Realtor to help you who will present you with a realistic market value of your home, and take that agent's advice.

It's Tuesday. Do You Know Where Your Realtor Is?

2011-12-06T11:04:00.000-06:00

Every week of the year, Chicagoland real estate agents are invited to make their listed properties available for viewing to all other agents. It's essential an open house for agents. In my geographic area (Chicago, and north suburbs), this weekly open house is either on a Tuesday morning, or Wednesday morning (depending on which community the property is in, dictated by the local multiple listing service).

We call this the "brokers' tour". This tour serves many purposes, the most obvious is to promote the listing agent's property to other agents. How better to explain the benefits and amenities of a home than to have the area agents come in to see it with their own eyes? The mood is relaxed. Sometimes the listing agent will promise snacks or even a full-blown lunch to draw more agents into their property for a visit. It's a good time to take in the property, ask the listing agent questions, and perhaps catch some conversation with other agent colleagues who are visiting when you are.

Another reason that agents get into their cars and "tour" around to visit other listings is to check out the competition for their own listings, or a listing that will be coming onto the market in the near future. It's imperative that a seller's agent have personal knowledge of what the competing properties are all about.

And finally, it's all about staying current with the local real estate market. I once had a friend comment to me that the weekly brokers' tour must truly be a waste of time. I responded that there was no way I could be a good agent for my clients if I was not aware of what homes are looking like and selling for in my own area. It's like trying to sell jewelry without ever setting foot in the jewelry store, ever. You just can't do it.

So imagine my distress this morning when I could not gain access to my own MLS service in order to research which listings were going to be available for touring today. Phone calls to the tech help desk didn't get a solution to the problem, only access to the "MLS-lite" version that does not even give me the brokers tour search capacity. Sigh. The internet is great when it works!

Evanston City Council Reaches Deeper into Citizens' Pockets

2011-12-04T22:24:00.001-06:00

In the last few days of November, Evanston's City Council voted to increase the property tax rate by another 4.63% for the 2012 budget year. This increase is to fund the pension and debt costs, according to an accounting of the Council's vote by the Pioneer Local newspaper of December 1. The translation of that property tax increase is described as adding $45 to a property owner's $5000 property tax bill.The 2012 budget has increased parking meter fees (25 cents per hour across the city), along with parking fine increases. More than ever, it is wise to avoid any expired parking meters in Evanston!Another area of increased cost is the water service to homes; the average Evanston family will pay an additional $7.88 next year.Still needing more revenue, the Council has voted to increase fees on refuse carts, a whopping jump from $1 to $7.95 for the small carts, and from $4 to $14.95 for the large carts!).Although not all members of the Council were 100% in support of all these cost increases to be carried by Evanstonians, the Council's attempts to cut costs (including reducing the city's payroll by eliminating job positions)were not enough to balance the budget for next year. The Council's November 29 meeting can be viewed on YouTube at this URL: http://www.youtube.com/v/8QYmvN0QtY4?version=3&hl=en_US

JUMBO MORTGAGES DO EXIST

2010-11-14T00:10:00.002-06:00

Good news for the so-called "jumbo" home loan customers: jumbo loans are back, but only for the well-qualified buyers who has lots of downpayment funds available, as much as 40%. And, of course, the borrower must be able to verify income and have a great credit score. This according to the Realtor Magazine.

Ready to move up to a more expensive property and wondering how you are going to finance the purchase? The answer is here for you. Talk to your favorite loan officer. If you need a recommendation for a loan officer, I can help with that!

Reminder: jumbo loans are loans over $417,000.

Home Buying Power Goes Up Up Up!

2010-11-13T23:46:00.002-06:00

According to a report from Freddie Mac (Federal Home Loan Mortgage Association), the national average mortgage rates fell this week to a level not seen since 1971, nearly 40 years ago!

The national average 15 year mortgage interest rate is 3.57%.
The national average 30 year mortgage interest rate is 4.17%.

This is such important news for buyers to absorb; the same $250,000 loan at 4.17% interest rate vs. a 6% interest rate of not many years ago, is suddenly more affordable.

Here are the numbers: at 4.17% the monthly payment would be $1218.17.
at 6.00% the monthly payment would be $1,498.88.

That is a savings of $280.71!

How much does that potential home purchase you are mulling over actually COST you today? Low prices, low mortgage interest rates, low COST to the buyer.

If you have been sitting on the fence, trying to make that decision about buying a home, or maybe just refinancing your current mortgage, it's time to check in with your favorite Realtor or mortgage specialist, wouldn't you say?

New Illinois State Law for Homeowner Associations

2010-08-15T23:21:00.004-05:00

Although I think it did not make many waves in the general news media, the Illinois state legislature passed an act that provides a road map for homeowner associations that are NOT a condominium. I suppose the reason I took note of it is because I own a townhouse that is not a condo, but it is under the governance of a homeowners association.

Illinois has had a condo law to guide condo associations in their governance for many years, but nothing for situations such as my community of 36 homes.

Please welcome to the world PA 96-1400, otherwise known as "Common Interest Community Association Act." It reads much like the condo act, so for those of us who love rules and regulations (and laws to help us know how to behave), this will not be unfamiliar language, and easy to understand.

Except for homeowner associations that have professional management to inform them of this new law (yes, it is in effect), it is mildly amusing to consider how few associations will even be aware of this new law. This blurb is my feeble attempt to pass it along.

Cheers to you, all you Boards of Directors!

What a Beautiful Moment!

2010-07-22T23:59:00.003-05:00

I dropped in for a brief visit to one of my seller clients earlier this week. She told me something that simply made my day, and I promised her that I would tell the world about it on my blog. So here it is:

This seller has taken my advice to heart, advice on how to prepare the home for showing appointments. She told me that she has adopted the practice of scooping up any dirty kitchen dishes/gear and putting it in the car with her as she heads out to errands or appointments for the day, just to keep them out of sight of any last-minute requests to show her home. Now THERE's a client to be proud of! Find this squeaky clean kitchen in this home:

(You are encouraged to visit the other rooms in the house as well as the kitchen!)

Mortgage Interest Rates are a Gift - Accept It!

2010-07-18T14:34:00.003-05:00

The Wall Street Journal announced on July 16 that the mortgage rate for a 15-year loan clocked in at 4.06%. Rates for a 30-year loan were quoted as 4.57%.

I don't have to tell anyone how incredible these rates are. Anyone who is still hesitating on making a home purchase, please consider that these rates will make any home purchase far more affordable than it is likely to be anytime in the future.

I personally remember mortgage rates being at 18% way back when. Time were tough back then for buyers AND sellers. Now? The buyers are in a terrific position with home prices being low, coupled with historically low mortgage rates. Sellers are perhaps not so happy with the price they are getting, but at least they stand a good chance of finding a buyer who can truly afford to purchase their home, given the selling prices and the mortgage rates. Buyers and sellers, rejoice!

Tenants, Do Your Homework!

2010-06-08T02:21:00.002-05:00

I just inherited a client who is living a nightmare, through no fault of his own. His employer has relocated him to my community of coverage from out of state. The client leased a nice condo unit in a popular building. That was three weeks ago. This client is now being forced to move out. Want to guess why?

Yep, the condo owner is in foreclosure, and the unit is scheduled to be auctioned at sheriff's sale very soon.

Yes, I will be showing this client a rental condo or two, in addition to some rental apartments, but it was a moment of agent-client bonding when I sat at the computer with this client and checked the online recorder of deeds file for those condos we plan to visit.

Rental clients are a much larger percentage of our business in my broker's company of late, and the newest "wrinkle" in helping a tenant on the hunt for a new home is verifying the clear title of the condo for rent. And not just a search for foreclosure problems is needed; a condo owner can be putting his tenant at risk if the owner has not been paying the condo assessments as well. In this state (Illinois), the condo association has the ability to seize the condo unit for nonpayment of assessments, and arrange for its own tenant.

Just thought I should pass this along as a "heads up" to my colleagues out there across the country, as well as folks who are searching for a home to rent. Bad things CAN happen to good people (the tenant), but we can minimize the risk by taking a moment to verify a fact or two.

Ever Progressive- Evanston Planning Wind Farms

2010-04-22T01:29:00.006-05:00

Sometimes I am just darned proud to call Evanston my home, and this is one of them. The City Fathers announced last week that they have set upon a path of planning for a healthy number of wind catching machines offshore in Lake Michigan (6 miles from shore). Although this is just in the initial discussion stage, already the naysayers have been heard from, complaining that such a facility would block the beautiful lake views of those on dry land. Point-counterpoint: anything that is 6 miles out from shore is hardly discernible from land, and if anything it will appear so small that it's not worth discussing (more or less).

We understand there will be lots of regulatory approval hoops to jump through, but it's exciting to think of this coming down our path, so to speak.

Yes, we take our Earth Day very seriously here in E-Town!

Excellent Deal at Museum of Science & Industry

2010-04-18T23:30:00.004-05:00

April 19-23, busy? Clear your calendar and head on over to MSI (otherwise known as the Museum of Science and Industry). You must make the effort to get there if you can because those 5 days are free-admission days. What a deal that is! Normal admission for adults runs between $13-$15. And children 3-11 pay $9 or $10 (depending on your home address - Chicago vs. not Chicago).

Where? 57th Street at Lake Shore Drive in Chicago
When? 9:30 am - 4 pm
Why? All those really cool exhibits, like Science Storms and You, and the U-505 submarine.

Allow as many hours as you can spare. It's a full day's worth of exploration and learning, no matter what your age.

Chicagoland Market is Perking Up

2010-04-15T16:45:00.000-05:00

According to the local real estate board for the suburban communities that lie due north of Chicago, the statistics for the first quarter of the year are definitely encouraging.

Single family home sales are up some 59% over the same period of time in 2009.

Homes under contract are up 60% for the entire Chicagoland region.

When I check the daily "hot sheet" for several of the communities that I cover, there are new contracts pending every day. And the price spread is large, from the modest condo unit to the multi-million dollar homes.

Here's hoping that the energy continues past the April 30 deadline for the income tax credit!

The Critters are Capitalizing on Stupid Human Tricks

2010-04-14T00:00:00.009-05:00

According to a recent article in the Chicago Sun-Times newspaper, there is an interesting side effect of the growing number of foreclosed and vacant properties in the city (and suburbs as well, I suppose).

As a Realtor, I've been in my share of foreclosed properties the past 3 years, and it isn't much fun. Be careful to avoid walking directly under the falling ceiling plaster. Step around that hole in the floor. Oh, and don't let yourself trip over the bulging hardwood floor that rises a good 6 inches above the rest of the flooring. Hold your breath so the mold doesn't make you gasp for air. Never mind the paint that is peeling off the walls in sheets, just like wallpaper might do. Don't be alarmed if the basement concrete floor looks like the surface of the moon from the frost and freeze cycle of the ground underneath it. Obviously, don't expect to find a forgotten soda pop in the refrigerator, because there is most likely no refrigerator in the kitchen.

And keep your distance from the raccoons that have invaded the house. The abandoned houses are apparently an attraction for the wild creatures that share the city with us humans. Makes sense; it's shelter from the elements, protection from those pesky dogs that tend to chase them up a tree, and a virtual playground with all those stairs to climb, counters and cabinets to explore, windows to peer out of.

And they aren't satisfied to enter only the empty houses; the nice neighbors next door are getting visits from the 'coons as well now. Seems the fear of humans is decreasing in the animals, and they think nothing of squeezing through a partially open window to munch on the smorgasboard on the kitchen counter and the goodies stored in cabinets.

The City of Chicago is waking up to the problem and ramping up the distribution of traps to the owners of occupied houses who request this assistance in an effort to eliminate those late night run-ins with 4-legged fuzzy creatures in the kitchen, when all you wanted was another glass of warm milk and a cookie.
(Photo courtesy of Flickr Creative Commons - RubiconLaw)

Time is Growing Short for Tax Credit

2010-04-12T00:36:00.002-05:00

As if you haven't been hearing and reading about this from every real estate agent and mortgage broker on the planet: in order to meet the first hurdle of eligibility for the income tax CREDIT for being a first-time home buyer, or a repeat buyer who has lived at least 5 consecutive years out of the past 8 at the same principal residence, you MUST be bound to a purchase contract for a principal residence no later than April 30. And that transaction must close no later than June 30.

Yes, April is heavy with deadlines this year. First is the April 15 tax filing deadline, then the April 30 contract deadline for the income tax credit. Add to that the Illinois real estate brokers renewal deadline of April 30, and you have one nervous Realtor on your hands here! But I'm still having fun, folks!

If you have any hope of meeting that April 30 deadline, give me a call or drop me a line. There is serious money in the tax credit, and definitely worth pursuing.

We Can't Hide the Truth From Clients

2010-04-08T22:41:00.003-05:00

A few weeks ago, I posted on a social website (not on this blog) a brief reprise of a new study, widely cited in the media, that stated our American home VALUES will not return to their highest levels of a few years ago (think 2005 or so) until at least the year 2014, and probably 2019 in some extreme cases. My purpose in doing that was to raise awareness in buyers and sellers of real estate, awareness that "waiting for the house value to return to the 2005 level" means a looooooong wait for a seller. And for a buyer, it means that maybe this really is a great time to buy while prices are low, AS LONG AS the need for an owned home is present, and the buyer plans to be in that home for several years, minimally 4 or 5.

I was immediately chastised by a colleague in my market, someone whom I know on a personal level: chastised for demonstrating a negative message to the reading public, chastised for not pumping up the volume on a cheerful message about selling or buying a home right now as a fantastic plan. Period.

What is the quality of my service that I provide to my clients if I fail to educate them on the current market situation, and trends for the future? Is my job to sugar coat the facts? I don't think so. The facts might not be easy to accept, but the facts are real and do have an impact on a home buyer or seller as she makes choices and executes a plan to either buy or sell a property. To paint a picture that is only rosy instead of realistic does not speak well of me as a Realtor.

And that's all I wanted to say tonight. Other than I will do my job in the best way I know how - with honesty and integrity.

Realtors are Homeowners Too (and share the same challenges as everybody else)

2010-03-17T23:25:00.003-05:00

Hurrah!

I received a letter from the County Board of Review recently, giving me the results of my property assessment appeal.

Along with 17 other owners in my townhome community, I traveled to the heart of the County's administrative building in Chicago's Loop last month to make a case for a reduction in my property assessment. The assessment that was delivered to all of us late last year reflected an unrealistic fair market value of our homes. It was rather absurd, really, overstating our value by some 28%.

One of our neighbors took the lead in organizing our mass appeal to the County, and spent many hours of his own time to investigate, interview, argue, and otherwise open the door for all 36 of us to plea our case to the people at the County seat who have the power to change an assessed value of a property. Thank you, Tom!

So today was the big day for me; I pulled an envelope from the mailbox on the front porch, labeled as coming from the County Board of Review. I couldn't wait to pull out that letter, announcing my property tax fate; relief! A 19.25% reduction in assessed value!

Life is good today. Now if only we could do something about the weather around these parts ...

The Dreaded Property Tax Deadline Approaches

2010-03-01T00:02:00.003-06:00

Sorry to be the bearer of bad news, but the Cook County property tax first installment on the 2009 year is due this Tuesday, March 2. Be ready to monitor your payment made by your mortgage lender (if your lender keeps a property tax escrow account on your behalf), OR make the payment yourself: online at www.cookcountytreasurer.com, by mail, or at a branch of Chase Bank (or one of 200 other community banks that are listed on the Treasurer's website).

Consider this a public service announcement, if you would. No particular words of wisdom today, but advice to save you being charged a late fee!

How Many Comps Must be Reviewed to Choose a LIsting Price?

2010-02-21T12:01:00.001-06:00

Answer - just one.

Scenario: owner wants to list and sell a condo unit. The conversation we had about the desire to sell centered around what it is worth vs. what will the right list price be.

There is a neighbor on market in the same condo building with a very similar unit on market and under contract, and under contract in less than 2 weeks! The average market time in this neighborhood for condos over the past 6 months is 130 days.

There's a lesson in there somewhere, and the lesson was all about pricing with the goal of getting it sold.

It is not always easy to let go of the dream of selling for top dollar in this lackluster real estate market (Chicago), particularly when it comes to condominiums. But when reality comes calling (as in "I MUST sell it this spring!"), letting go is the only way to go.

Even Uncle Sam Sez So

2010-02-18T11:37:00.005-06:00

The years go by, and some things never change. Public opinion polls seem to repeat the news: the general public thinks very poorly of real estate agents as a profession. And I mean VERY poorly. Most people hold real estate agents in low regard. The reasons vary, but the result is truly unfortunate. An unrepresented seller or buyer of real estate can perhaps muddle through a transaction, but at a very high cost (both financial and emotional).

But it's not just ME trying to educate people on the value of finding and using a trusted real estate agent; Uncle Sam also "gets it." In a recent FHA e-newsletter (February 15, 2010), the notion of hiring an agent is promoted as the wise thing to do. To quote: "Most of the fears that buyers have about realtors are just plan false." And then this quote: "...your real estate agent's job is to represent your interest only. They want to get the deal done for you! If you are a happy client, you are likely to refer business to them for doing a good job." Sounds reasonable, right?

The article continues on to suggest that most folks simply don't understand how an agent's role can benefit them. So it seems the FHA and I are promoting the use of a licensed, ethical, and trustworthy agent. Sure, there are some less-than-stellar agents in the ranks, just as there are in any profession. Ever meet a teacher you thought was sub-par, or a doctor? You see my point.

Subscribe to the FHA newsletter for free, read the weekly article, and learn. To find a terrific agent, start asking your friends and neighbors who they would recommend, based on personal experience. Just because a local agent has spent lots of dollars on marketing their brand does not translate into good service to you. It's the person who can serve your needs, not the face in a newspaper ad or on a grocery store cart.

It's All About Trust in This Business of Real Estate

2010-01-05T22:09:00.003-06:00

It all started so simply. I had sent out a "just listed" postcard on a rental property last summer. One of those cards went to a neighboring home close to the new listing. The resident of that home passed along the postcard to a coworker who was searching for a rental. That seeker called me to see the property, I showed it to her and her spouse. It was not a fit for them, but I offered to help them find a place they could call their next home. We worked hard together, and they landed in a condo rental that thrilled them. That one modest rental client has now recommended me to three coworkers in only a handful of months' time; two are rental seekers, and the third will be a condo for-sale listing. Each of this second wave of clients has recounted the enthusiasm that the first client couple has for my service to them. The newly referred clients are anticipating that their experience with me will be a repeat of that enthusiastic result. They are trusting me to deliver. That first client couple are trusting me to provide the same level of service to their friends. Kind of humbling.

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

2009-12-29T22:49:00.003-06:00

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, ...

2009-10-17T19:35:00.005-05:00

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

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

2009-10-04T21:21:00.004-05:00

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

2009-09-29T23:25:00.003-05:00

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?

2009-09-29T19:59:00.002-05:00

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)

2009-09-28T12:00:00.005-05:00

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

2009-09-26T11:56:00.007-05:00

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.

2009-09-25T19:54:00.002-05:00

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

2009-09-24T10:14:00.004-05:00

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

2009-09-13T23:52:00.006-05:00

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.

2009-08-30T01:26:00.004-05:00

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

2009-08-18T22:40:00.004-05:00

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?)

2009-08-18T00:30:00.006-05:00

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!

2009-08-12T22:04:00.002-05:00

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!

2009-06-04T22:19:00.005-05:00

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?

2009-03-13T23:47:00.008-05:00

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

2009-03-12T14:33:00.003-05:00

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!

2009-03-12T01:37:00.003-05:00

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!

2009-03-08T11:34:00.005-05:00

("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!

2009-02-15T23:21:00.011-06:00

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.

Foreclosures Are Such a Deal - so why aren't people buying them????

2008-11-26T13:08:00.005-06:00

The foreclosed home in my own complex that I wrote about in an earlier post is still on the market. The price was reduced by $10,000 on the 30th day of the listing. We're coming up on the second 30 day mark, and I wonder if the price will slide yet a second time. It's starting to look like the price point where the previous listing agent took the property when trying to sell it before the lender repossessed the house.

It's a huge bargain. Where are the buyers, I wonder? I strongly feel it is simply the national economy. People are very reluctant to take a chance on committing to a mortgage right now, fearful of job loss perhaps.

Or perhaps the buyers are assuming that mortgage money is impossible to get right now. Whoa!!! Let's put a stop to that misconception right here and now! The lenders whom I trust tell me that they certainly DO have mortgage money to lend, as long as the buyer(s) is/are qualified to take the loan. What is qualified? Decent FICO scores (vary according to the type of loan being considered) and decent debt ratios. Talk to a responsible mortgage lender for details.

And the rates today for conventional loans has dipped to 5.6%, and FHA loan rates are 5.8%. And FHA requires only 3% downpayment until January '09, and then it goes up to 3.5%.

This is still a fantastic time to purchase a home. No doubt about it. Wish I needed to buy something myself right now!

A Foreclosure Close to Home

2008-10-22T18:46:00.004-05:00

Foreclosure is a word we hear every day in the news, and we Realtors certainly have to speak the word far more often than we wish we had to these days.

I have shown clients many foreclosed properties this year, and I have seen firsthand the effects of foreclosure on the house itself, and its neighborhood. It isn't pretty.

And foreclosure hit very close to me this summer when a property in my townhome community fell into foreclosure and was finally auctioned off. To describe the process could be lengthy, and it might be boring to read. But I want to simply tell you, the reader, how quickly and how brutally a homeowner's world can come to an end, at the auction.

I attended the auction of the townhome in my community, along with my homeowner association president, on a September morning in Chicago's Loop. (Please click on the link below to read about the company that conducts these auctions, Judicial Sales Corporation.) We rode up the elevator in a lovely office building on Wacker Drive and exited at the correct floor, and were guided into a small meeting room. It was set up with some 40 folding chairs for visitors to the auction. At the front of the room sat the auctioneer, with an assistant or two who acted as runners, carrying file folders back and forth into the private offices of Judicial Sales Corporation. The HOA president and I knew our neighbor's property was to be auctioned at 10 am. We were seated by 10 am and waited for the proceedings to begin.

Every visitor was handed a list of the properties to be auctioned that week. Some 250 properties every single day were scheduled to be auctioned. They were handled in no particular order, so if the visitor was there to observe or to try to buy a specific property, you did not dare leave the room because each property is dealt with in less than 30 seconds. That's right, 30 SECONDS.

The auctioneer picks up a file folder, reads off the court case number, the property address, and the "opening bid." (The bid is actually the dollar amount that the court has awarded the mortgage lender who is left with a property and nobody to pay the mortgage for it. In most of the cases, the lender wins the auction, because nobody else wants to bid on it.) The auctioneer asks "Do I hear any other bids?" She waits about 5 seconds, and then says "going once, going twice, sold." She makes some notations on the file, closes it up, and hands it to her assistant, and it's over with. Done. Somebody just lost his or her home.

The particular frustration that my homeowner association president and I felt that morning was that our neighbor's house did not rise to the top of the file folder pile before the auctioneer looked at her watch, said "Well, it's 10:45 am now, time for a break. We'll start again at 2 pm this afternoon." WHAT???? 2 pm?? Neither of us could be back at 2 pm that day, so we did not actually get to witness the end of our ex neighbor's homeownership. But it was an enlightening experience, none the less. In our neighbor's case, the lender won the auction (body else bid on it), and now it has been listed for sale with a broker who deals rather exclusively in foreclosures.

The ins and outs of foreclosure are deep and complex. I plan to write about it from time to time, but in small chunks so as not to overwhelm OR to bore the reader. But just let me say that foreclosure is a very sad thing, for everyone around the home is touched by it in a negative way. If you are facing problems in paying your mortgage, or know someone who is, please contact that lender right away, or an attorney who specializes in foreclosure situations so that you can save as much of the situation as possible. Going into a foreclosure without a good legal adviser will cause you even more harm. Minimize the damage. Get help, please. I can provide names of attorneys who work in this field, and the cost of their services is minimal compared the loss incurred by the homeowner who tries to navigate the process alone.

http://www.tjsc.com/TJSCHome.htm

ARE MORTGAGES ALIVE IN CHICAGOLAND?

2008-10-08T18:08:00.004-05:00

Times are uncertain, no doubt. We are all watching the stock market every day and groaning, watching the Congress actions and the US Treasury Department actions as they attempt to turn our credit market around.

And the underlying question still remains: can you still get a mortgage loan?

Yes.

You betcha!

I check every few days with my in-house mortgage specialist on this very question. Today she said "Absolutely there is mortgage money available." If the borrower is qualified for the loan, the loan can be had. The interest rates are still historically low, including conventional (around 6.25%), FHA (3% downpayment!), and jumbo (5.5% for a 5/1 ARM - wow!).

Waiting for the home prices to fall further before you buy? That's what so many buyers are telling their Realtors lately. But that begs the question: "When will the prices hit bottom? And how will you KNOW that they are at the bottom? And what will the loan interest rates be when the bottom comes - at today's rates, or higher, or lower?" Nobody has that crystal ball to tell us how to "time" a real estate purchase. In the long run, real estate has always been a good investment over time. The benefits of home ownership can far outweigh the difference of a few dollars every month in a mortgage payment for a home purchased at one price versus another.

Have you delayed making a home purchase this year? Have your friends delayed a purchase? Let me know what you are thinking, how the current state of affairs has molded your decision.

GETTING OUT THE VOTE IN 2008 - REGISTER BY OCTOBER 7

2008-09-27T10:14:00.003-05:00

This year's presidential election has everyone's attention. Please make sure that you are eligible to vote, and that you are on the voter registration rolls. You can follow the link embedded below to start the registration process for yourself. Although I live in Cook County, I do not heed the mantra of "Vote Early, Vote Often." I suggest that one person/one vote is the best path to follow. :-)

The last day to register for the November elections is Tuesday, October 7. If you have never registered, or if you have moved or if you have changed your name since you last registered, please click here to register. Complete this form and mail to the appropriate address below.

Cook County residents should mail the completed form to:Cook County Clerk69 West Washington, Room 500Chicago, Illinois 60602

Lake County residents should mail the completed form to:Lake County Clerk18 North County Street, Room 101Waukegan, Illinois 60085

CLIENTS ARE SOMETIMES , UM, FURRY

2008-09-16T00:07:00.006-05:00

One of the more interesting assignments that I can accept is to help a family move into my area from another state. It's not just about finding the right abode for the family; it's educating the family about the various communities from which to choose, where services are located, and where the closest doggie beach can be found. Luckily for my most recent out-of-state clients, they chose to purchase a home in Evanston, which boasts a very popular doggie beach along Lake Michigan. Meet their best buddy Herschel (in the photo), who lost no time in getting his beach pass so that he could romp and splash with his new friends at the lake. "Two paws up" is Herschel's approval rating of Evanston's doggie beach, according to his mom.

Got Radon? Now part of a home sale

2007-12-21T22:33:00.000-06:00

Another piece of paper will be added to the home sale transaction, beginning January 1, 2008. The Illinois state legislature has mandated that any home sale contract dated January 1, 2008 and beyond must be accompanied by a radon disclosure provided by the seller to the purchaser. In a similar fashion to the existing lead paint disclosure requirement, the seller(s) must attest to their knowledge of the existence of radon gas in the property being sold. The disclosure form and a pamphlet explaining the reasons for concern about radon gas in homes has been issued for use by real estate professionals just this week.

Radon has been identified as a health risk, and some communities in the Chicagoland area seem to have more of a problem with radon than others. Your local real estate agent should be able to discuss the radon concern with you, and provide the required disclosures and pamphlet to every seller. To learn more about the radon risk and our state's new requirements surrounding a home sale, visit this website: http://www.radon.illinois.gov/availpub.asp

phone 1-800-325-1245.

Coincidentally, a recent episode of the television program "Extreme Makeover: Home Edition" told the story of a family whose home was filled with the dangerous radon gas.

Making the home buying process a little safer for everyone is the goal; raising awareness of radon is part of the solution.

ARM Loan Due to Reset Soon? Check This Out!

2007-11-21T01:08:00.000-06:00

There will be unprecedented numbers of ARM loans due to reset in 2008. Is your home loan among them? Regardless of your home town, free help is on the way from the Illinois Department of Housing Authority. This free session should be on your calendar:

Chicago
Saturday, December 8, 9AM -2PM
Wright College
4300 North Narragansett
Chicago, Illinois 60634

Representatives from the following companies will be there to discuss and assist homeowners who are concerned about their mortgage situation:

FIFTH THIRD BANK
HARRIS BANK
ELITE MORTGAGE SOLUTIONS
WELLS FARGO
CITI

Chicago dweller? Evanston? Buffalo Grove? Schaumburg? Winnetka? Wilmette? Highland Park? You're all in good company. Head on down to the IDHA seminar.

Time to Buy a Home? You Bet!!

2007-10-25T10:46:00.000-05:00

My in-house mortgage specialist was smiling yesterday when he informed me about the latest mortgage rates that dropped within the past 2 days. It is so encouraging to know that rates are STILL at an historical low point:

For "conventional" loan amounts (under $417,000)
30 year fixed is 6.25%
15 year fixed is 5.875%

3/1 ARM is 5.625
5/1 ARM is 5.875

For "jumbo" loans (over $417,000)
30 year fixed is 6.875%
15 year fixed is 6.50%

3/1 ARM is 6.00%
5/1 ARM is 6.125%

This is truly exciting information for you if buying a property is in your immediate future. With a good credit score, the mortgage money is a bargain. Don't hesitate, jump in and find a terrific home at a terrific price, with terrific financing! It's a triple play, if you would think of it that way: selection, price, and financing.

California fires - victim relief

2007-10-24T16:50:00.000-05:00

The horrific events in California strike at the heart of every American's soul. Losing your home or business to such a terrifying event seems unimaginable. Please consider making a donation to the American Red Cross to help our California neighbors who are in crisis.

http://www.redcross.org/donate/donate.html

MEDIA, MEDIA, GO AWAY, COME AGAIN SOME OTHER DAY!

2007-09-16T22:43:00.000-05:00

It seems EVERYBODY wants to talk about the real estate market "crisis" as soon as they see my realtor name tag on my jacket. The newspapers and television news is covering the so-called market crisis on a routine basis. Today was no exception. I had a first meeting with a great couple who are starting to pursue their first home purchase. They had few questions, but the first one was "so what about this real estate market crisis - is it "ok" for us to make a purchase at this time?"

The answer is "yes," this is a good time to buy in our Chicagoland market. The primary reasons for that answer are this: our Chicagoland economy is basically very sound, our home valuations have risen gradually over time (not fueled to a frenzied pace by investor buying), and mortgage money is still relatively cheap.

Sure, the market has cooled down, and home values have stopped soaring by 5-8% every year. But buyers and sellers are still signing contracts and closing transactions, but simply at a slower pace than the frantic pace that we experienced between 2000 and 2005.

Mortgage availability? Easy, as long as the buyer(s) have a good credit score, good debt ratios, and can verify income. Yes, the subprime mortgage market has done a major melt-down, blocking some buyers from entering the real estate market. But as we have seen, those sub-prime loans were largely granted to buyers who did not have the income to support the mortgage payments. No home buyer is well served by being granted a loan that they cannot afford. And that goes for the so-called "jumbo" loans as well (loans made for any amount over $417,000).

Talk to a great agent if you want to purchase a home (or sell a home), and talk to a trusted mortgage specialist about getting the financing you might need. With the right professional assistance, buyers and sellers are still coming together and getting people what they need: a closed transaction. In the past 30 days, no fewer than 27 homes were under contract within 30 days of going on the market on the North Shore alone. And one has already closed!

Agents and Home Inspectors

2007-07-14T00:54:00.000-05:00

As a Realtor racks up more than a handful of transactions, he/she becomes aware that there are many breeds of home inspectors in the field (just as there are many breeds of real estate agents, of course!).

Home inspectors should aim for a network of appreciative agents (buyer and seller agents alike), who can be looked upon as a source of ongoing client referrals. Makes sense; every hard working business owner wants constant referrals to keep the bottom line healthy. So why do some home inspectors make it HARD to recommend them?

One home inspector that my buyer client employed managed to test the patience of this agent, and the home seller as well. I actually had to experience not one, but two inspections by this same inspector because my client went under contract on two different properties before a successful conclusion of his desired transaction.

What was the problem, you might ask? Time. That inspector took no less than 4 1/2 hours at each property. The time was not simply reviewing every nut and bolt in the property; that I might at least understand. The time was spent largely in explaining, in a never-ending stream of consciousness, every component and system in the house to the buyer, how everything works, thorough instruction on maintenance of those components and systems, going well beyond what the intent of the home inspection provision as stated in the current area multi-board contract. The current boilerplate contract states "The home inspection shall cover only major components of the Real Estate, including but not limited to, central heating system(s), central cooling system(s), plumbing and well system, electrical system, roof, walls, windows, ceilings, floors, appliances and foundation. A major component shall be deemed to be in operating condition if it performs the function for which it is intended, regardless of age, and does not constitute a threat to health or safety." So, the buyer is guaranteed the right to gain assurance that major components are operating properly. Period.

If a buyer wants a deeper understanding of HOW the central humidifier works, for example, it would be appropriate to seek out a home-buyer workshop on "How to Maintain Your New Home Purchase" or perhaps read up about a component online, or borrow a book from the library, or or or or.....

In one instance I had to continually reassure the home SELLER, who was being polite by staying outside on his screened porch so the buyer could follow the inspector in privacy on a very cold day, that the inspector was "almost done", over and over. I have heard a story from another agent that she once witnessed a home inspection that went on for some eight (that's 8) hours, in a very small property.

And recently I have had the opportunity to correct blatantly incorrect information stated in the inspector's report to the home buyer. Such as (I am paraphrasing here) "The screen insert is missing for the kitchen storm door...should be replaced..." After the inspector left the property, I went into the attic, where the inspector had also been, picked up the screen insert that was leaning against the wall in plain sight, brought it into the kitchen, checked the screen insert for fit with the storm door, and promptly emailed the buyer's agent that I have placed the reportedly missing screen insert in the kitchen for the buyer to utilize as desired. This same inspector stated in the written report that carbon monoxide detectors were missing, and must be placed in the home, per the 2007 Illinois requirement. Once again, I emailed the buyer's agent to state that indeed there WAS a CO detector mounted just outside the bedroom doors (in compliance with the law), and said detector was functioning, evidenced by the digital readout face. Conversely, this same inspector missed a couple obvious flaws in the property that I would have wanted disclosed, if I had been the buyer agent.

It takes many people, specializing in varied professions, to take a property transaction from start to finish. Home inspectors are an important link in that transaction chain. Home buyers need to employ an inspector who will take care to do a fine job on the inspection. But the key word here is "INSPECTION." The home inspector should INSPECT, not LECTURE, and not hand out incorrect information. Do a good job, get more referrals.

What Can a Realtor Do to Sell a Property?

2007-07-11T09:03:00.000-05:00

In my last post, I mentioned the activity called "reverse prospecting." What is it? As a licensed agent who subscribes to the two local multiple listing services, I have the ability to identify other agents who have registered buyer clients who are a potential match for my listings.

I cannot read the identity of the buyer client, but I can read the name and contact information of the agent who is working with that buyer client; this is done through the MLS software. In this slower moving market, it is definitely a benefit to my seller client to be able to place a phone call to each of those listed agents, and draw their attention to the listing I am trying to sell.

When I am searching for a property for a buyer client, I am diligent in reviewing the MLS several times a day for new listings, and consider every single one with careful scrutiny. But guess what! Not all agents do this, take these extra steps to find the right property for their clients. So it is really important for a listing agent to make those phone calls to agents who might have the perfect buyer in their portfolio of clients.

A personal phone call will not only engage the buyer agent in conversation about the fact the listing EXISTS, but it can also answer questions about the property, clear up any misunderstandings about the listing, and otherwise eliminate objections to the property: "Doesn't that condo building forbid pets?" "That used to be the case, but two years ago the Board of Directors changed the by-laws, and now cats and small dogs are allowed!" "Wow, that's great news! My buyer client has a cat. I'll bet she would love to see the unit. When can we see it?" Not only have I aroused interest for my seller's property, I have alerted a buyer agent to a listing that might be his/her client's perfect next home.

And so, a showing! And maybe a buyer willing to make an offer to purchase! And all it took was a phone call. Enough said.

Elm Tree Village sales in 2007 - tough!

2007-07-09T22:53:00.001-05:00

There is a unique and lovely townhouse complex in south Evanston called Elm Tree Village. Built in the mid-1950's, this collection of 36, 2 bed/1 bath red brick homes covers the length of an entire city block, from Washington south to Cleveland, along Dodge Avenue.

It is not unusual to see anywhere from 2-5 of these units to change hands in a year. But to experience 5 of them all on the market simultaneously? Wow. Each seller has a very different reason to be selling: one is relocating to Wisconsin to enter a graduate program at the University in Madison, another is moving to northern Illinois to be closer to the workplace, yet another is moving within the complex to gain the advantage of an updated kitchen and bathroom!

The significance of this glut of units for sale is this: the small pool of buyers who are interested in this type of property will pick off first one of these units, and waiting for the next buyer to step in and make an offer could potentially take many more weeks, if not months, given the slow market we are experiencing. Each of the units has its advantages and disadvantages, and each buyer will perceive those units very differently, depending on their preferences for end unit vs. being a "sandwich," updated kitchen and bath vs. original equipment, etc.

The somewhat happen ending is that suddenly, 3 of the 5 are under contract. The first one to go (contract dated June 12) was a surprise, imho, to most agents. The next contract did not happen until July 5, and then quickly another one on July 6.

Getting a home sold under these circumstances takes extra diligence; I worked the reverse prospecting tool very hard, stirring up energy and interest in my listing among the 5. Ultimately, it was the networking that paid off, bringing in a buyer.

Real estate is not simply buying or selling properties

2007-06-24T21:52:00.000-05:00

I had a fun afternoon today, helping a client search for just the "right" condo or apartment to rent for awhile. The search is focused in Chicago's Loop area, which means investigating numerous hi-rise buildings with varying amenities.

Yes, licensed real estate agents can help a client with a rental property, either to list the property in the multiple listing service, or to work on behalf of a would-be tenant. As a listing agent, the compensation for handling the rental process is typically the equivalent of one month's rent. As the tenant's agent, compensation is paid out by the listing broker. The client pays nothing for a Realtor's assistance in finding the right rental home.

We are in Chicagoland, which means there is a huge offering of rentals on the internet, particularly CraigsList.com. Often we find that Craigs List provides larger numbers of rentals than does the MLS. I always advise a client to search Craigs List, in addition to having me arrange suitable rental property appointments.

Choosing the best rental property for a client might involve coaching that client to go down a mental checklist of features and benefits that sometimes parallels a home purchase, sometimes not. In the case of hi-rise buildings in Chicago's Loop, considerations are these: 1) location - does this address give you easy access to your daily activities; 2) car parking - do you have a car, and if so where will you park it, and what price will you expect to pay to park this car; 3) monthly rental fee - can you afford it!!?; 4) VIEW VIEW VIEW - Chicago means Lake Michigan for preferred views from a unit's windows (no lake view? thumbs down!); 5) condition of the unit - are the kitchen and bathroom updated? Walls painted? Carpet clean?

My client found a perfect place to rent today, and was confident the moment we walked in the front door of the unit. This confidence came from having viewed many other units over the past several days, giving a basis for comparison. When this perfect place was revealed to us today, we knew it was "the one." Everything was right: location, price, views (this is a corner unit with lots of sunlight and attractive things to watch out the windows, not just the rooftops of neighboring buildings), good general condition, etc. We pounced on it immediately, got an application form and lease from the listing agent, and expect to tie down the lease tomorrow.

Client happy. Realtor happy. Job done.

Movin With Susan: So... How's the Market Doing?

2007-06-23T09:24:00.000-05:00

Movin With Susan: So... How's the Market Doing?

HUH?

2007-06-20T11:30:00.000-05:00

Here is one creative seller! I received an internet "lead" in my email today, a lead which comes to me from a MLS listing I have posted on the national Realtor.com website.

The "lead" I received, which is intended to put a person in touch with me because they saw my property listing and want either to purchase that property, or otherwise ask me to assist in a purchase or a sale of their own property with the aid of a Realtor.

When I opened this email, I found it was a solicitation from a private condo owner to bring her a buyer for her property. This condo IS listed on the local MLS with a local brokerage, a brokerage that is known to be a "discount" broker. I find it very curious that this owner/seller is now putting in obviously considerable time to market her condo, despite being listed with a broker in the MLS. Think I'll give her a call!

When the Owner Sets the Price

2007-06-18T20:19:00.000-05:00

Ok, it's not a science, pricing a home correctly to sell.

But it IS an art! An art based on careful analysis of "comps" and knowledge of the market trends, pertinent community information, the exterior and interior decoration/staging, etc.

When a homeowner decides to sell his/her home without representation by a real estate agent and sets the price for the public to consider, the result is usually a vastly overpriced home. Heck, even agents who have their OWN home to sell tend to set the price way too high to start with. We can't help it - it's our own castle we're talkin' about here! ;-)

And FSBO (for-sale-by-owner) sellers are not only those folks who have a sign stuck in the front yard that they purchased at the local hardware store. These sellers also might choose a high profile internet-based FSBO service, or one of many so-called discount brokers to get their home entered into the local MLS.

The FSBO discussion is a large topic, not to be even skimmed over in this post. Suffice it to say, if the home is overpriced, it won't sell. And what's the point? I have personally watched a homeowner in my own neighbor try to sell his home for over a year now. He first tried selling with an internet FSBO service all last summer and fall. He is back on the market this spring with a real estate broker, but still vastly overpriced. I know this gentleman wants and needs to sell the property, but I also know he won't get what he is asking. The homeowner is wasting precious market time, the broker he has listed the property with is spinning his wheels trying to sell a property that won't sell at anything close to the list price.

Sellers, the message is this: The buying public won't pay you what you think you NEED to get for your home. The buyer does not CARE what you need to get from the sale. The buyer will only pay you what the correct market value of the house is, or LESS, depending on how desperate the seller becomes. Price it right, the first day on the market, and find your buyer quickly!

What is "the closing"????

2007-06-18T19:56:00.000-05:00

Somebody has a home to sell. Somebody wants to buy it. The stage is set!

The usual process goes like this: buyer writes a contract offer to purchase, the offer is negotiated, eventually the buyer and seller agree on all terms and conditions (or not!), perhaps some "earnest money" is deposited on account by the buyer, home inspection happens, attorneys for both sides hammer out the fine points, and .... Ta Da!!... this thing called "the closing" appears on everyone's calendar. What is it? Who attends? What happens? When?

In truth, quite a bit happens at the closing, but in keeping with the spirit of good blogging, I'll keep this brief.

The buyer and the seller (or their legal representatives) sit down with a title company officer ("the closer") to finalize the transfer of the property. Mortgage documents are signed and faxed to the lender, any monies that are pertinent to the transaction are accounted for on the "HUD-1" (otherwise known as the RESPA form), any past-due accounts on the property are verified as satisfied (property taxes, liens, special assessments, condo assessments, etc.), the "closer" asserts all the documents are correct and the money columns balance for the transaction, approves the deal, and suddenly thousands, maybe hundreds of thousands of dollars, or a few million dollars (houses can be costly in Chicagoland) suddenly fly around the closing table. The mortgage company gives the buyer his/her loan dollars, the buyer gives the seller his/her funds to purchase the property, the attorneys get their fee, the Realtors for both sides take home commission checks to their brokerage, the title company collects its fee,...

If any of these pieces do not fall property into place, the closing is blocked from its normal conclusion. And any seasoned real estate agent can tell you, that is one stressful situation. Every person involved in the transaction has a lot riding on the closing, not the least of which is the property transfer. If the deal does not close, somebody might not have a place to sleep that night (buyer or seller), moving company plans are blown off track, the subsequent closing for the seller might be delayed because they seller does not have the funds to close on their new property they planned to close on that same day. You get the picture.

Extreme preparation and cooperation is key in making a closing happen according to plan. If you have never purchased a property before, take heed, follow your lender's instructions, your attorney's instructions, and your agent's instructions. Or be prepared for a very troubling episode.

Some Fun This Weekend

2007-06-08T17:04:00.000-05:00

Summer in Chicagoland - so many opportunities to have some fun with family or friends, or just by yourself!

The headliner for this weekend is probably the Printers Row Book Fair, an outdoor affair that centers around South Dearborn in Chicago, between Congress Boulevard and Polk. Admission is free, but some events with special guests require a free ticket (http://www.printersrowbookfair.org/). With some famous guests whose names appear on world-class literature like Sara Paretsky and Joyce Carol Oates and Studs Terkel, you just can't stay away. Something for everybody, including special events for the kids. The weather for Saturday and Sunday promises to be sunny, around 80 degrees both days. Be green, take public transportation, and enjoy!

So... How's the Market Doing?

2007-06-08T13:51:00.001-05:00

Time to take a look back at the month of May on the North Shore where my Baird & Warner office is located. I thought it would be interesting to see how many properties came on the market in May (defined as a listing date between May 1 and May 31), and how many of them are already under contract (or perhaps even closed!) This is just a quick snapshot, covering the broad spectrum of property offerings: new construction, resale, a cancelled/new listing situation (ask your friendly realtor what that means!), etc. Generally speaking, it seems there is plenty of buying opportunity on the North Shore.

ROLL CALL:
Single family/ condo or townhome
(# under contract or closed) (# under contract/closed)

EVANSTON 107/ 193
(24, or 22.4%)/ (27, or 13.9%)

WILMETTE 84/ 4
(15, or 17.8%)/ (0)

KENILWORTH 4/ 0
(1, or 25%)/ (0)

WINNETKA 45/ 1
(8, or 17.7%)/ (0)

GLENCOE 26/ 5
(5, or 19.2%)/ (2, or 40%)

These numbers are gathered from the Multiple Listing Service of Northern Illinois.

PMI (or How I Learned to Stop Hating my Lender and Loving Tax Reform)

2007-02-19T21:34:00.000-06:00

Back in the good ol' days, if a home buyer did not have at least a 20% downpayment towards the purchase of a property, the mortgage lender stuck a little gift called PMI (private mortgage insurance) onto the home buyer's monthly mortgage payment. This PMI was, in fact, an insurance policy to protect the LENDER from possible future default on the loan by the BORROWER. But the borrower was forced to pay for the insurance policy, and received no benefit from having that insurance policy applied to his/her loan. The additional charge on the monthly mortgage payment could easily run anywhere from 0.19% to 0.9% of the total loan amount. Things were rather dismal for the borrower when it came to PMI.

Until now.

Effective in 2007, a tax reform measure regarding PMI now gives the borrower a reason to smile just a little bit. Here's the scoop: if household income is less than $100,000, mortgage insurance premiums are now tax deductible, just like mortgage INTEREST is deductible. Hoorah! This tax reform change applies to PMI, as well as FHA mortgage insurance and the VA funding fee. The purchase of a home or the refinance loans that involve such mortgage premiums must have closed on or after January 1, 2007.

For more detailed information on how this tax change might be helpful to you, please talk with your tax advisor, or contact my local (Winnetka) Baird & Warner mortgage expert, Reed Brunzell, at 847-446-1855.

Realtor recommendations on Service Providers

2007-02-01T22:53:00.000-06:00

Before I became a Realtor, I would heed the warnings of the media and well-intended friends on accepting recommendations from a Realtor for a mortgage lender, a home inspector, or other such service providers. My own instincts told me "There must be a selfish motive for a Realtor to give me specific recommendations on mortgage brokers, home inspectors, etc. Otherwise, why would the agent bother to suggest one company over another? Shouldn't I always find my own service providers, keeping that selection independent of my real estate agent?"

Fast forward to the present time, which finds me well into my real estate career and a sufficient number of transactions to my credit that give me a foundation of knowledge that I lacked before entering this business.

A Realtor (a designation earned only by those licensed agents who belong to their state and national professional association of real estate professionals) is obligated to follow a Code of Ethics. In Illinois, agents and brokers are also required to follow the dictates of the state's license law. One of the basic tenents of the Code and the law is giving honest service to clients and customers (more discussion on another day on the difference between a client and a customer!) Providing a client or customer with a recommendation for mortgage brokers and home inspectors certainly has the potential for fraudulent personal gain by the agent. HOWEVER, if the agent is following the dictates of the Code and the law, such recommendations will be provided to a client/customer only with the intention of providing a high standard of service to that client/customer and help him or her reach the goal of buying or selling a property.

Why bother giving recommendations at all? Because - when a home buyer or seller hires someone to provide service related to a real estate transaction, and that service provider is unqualified or unknowledgeable or dishonest or inept, the transaction can oft times fail to close, and sometimes cause financial harm to the buyer and/or the seller. I had two such situations recently.

The most disturbing example was a buyer client; this person worked very hard to find the "just right" property to purchase as a first-time buyer. This buyer needed a mortgage to acquire the property, as most buyers do. The deal "fell" because the buyer's mortgage broker could not deliver the mortgage to close the transaction. A conversation with the mortgage broker who is based in my office in Winnetka, revealed how the buyer could have certainly obtained the mortgage needed, including monies to help pay for closing, and a program to provide continuing income tax advantages over the life of the loan, above and beyond the standard deduction for interest on the mortgage loan.

The buyer worked several weeks to identify the right property for purchase, negotiate the contract, pay for a professional home inspection, pay the real estate attorney for what added up to several hours of work on the transaction, only to end up empty handed and nervous about trying again to purchase something else.

If a buyer or seller can feel there is reason to trust his/her agent, then it follows that the agent's recommendations for service providers can be trusted as well. It is in the best interest of the CLIENT to opt for excellent service on a mortgage, a home inspection, and an attorney. And if it's good for the client, it's just plain 'ol good for the agent as well.

Exciting new service for city dwellers

2006-12-27T20:28:00.000-06:00

I have banded together with four other colleagues from my office of Baird & Warner to launch a service that is molded to address the special needs of individuals or families who want to move to the North Shore of Chicago, but are overwhelmed with the choices they need to make: which community, where are the shops, where are the commuter trains and buses, what are the school choices for the children, is it important to buy those city parking decals for the car windshield?

Look for our advertisement in Chicago Parent Magazine's January, February and March editions. Pass the good news along, there is help for those folks who want to relocate out of the City to the North Shore.

And surf on over to our interactive blog, link is shown with this post. Lots of ground will be covered in the blog, and the public is encouraged to participate with questions and comments.

With the start of the new year upon us, it's a great time to get out there, find a terrific Realtor to help you, and shop for the home that fills your needs. Mortgage rates are just slightly above their 40-year low!! The Chicago real estate market remains solid.

It's a Holiday Thing - Parade Day in Wilmette!

2006-11-16T17:38:00.000-06:00

I haven't been in a parade since my high school marching band days, back in small-town Pennsylvania. (if you care to know, I played the piccolo!)

But my luck returns - I am walking with fellow Baird & Warner agents in the Wilmette Holiday Parade on Saturday, November 18. It begins at 10:30 AM, winding its way from 4th & Linden, up to Central Street, and ending up at the Village Hall. The kids can get a photo op with Santa at Village Hall.

My buddies and I will be handing out candy to all parade goers. We will be easy to spot in our bright yellow Baird & Warner yellow tee-shirts.

Be there or be Scrooge-like!

Local Election on the North Shore

2006-11-16T16:20:00.000-06:00

An important referendum was on the November 7, 2006, ballot for residents of Evanston: "Should the City increase its real estate transfer tax by $1 for every $1,000 of property value in the sales price?" This referendum was turned down by the voters; the final count was 6,218 "yes" votes, and 6,681 "no" votes.

What IS a transfer tax? Municipalities have the option of levying a tax, sometimes referred to as transfer stamps, when a residential property changes ownership. The funds that the town accumulates are then used for city services of some sort. In the case of Evanston, the addition increase was earmarked to be "...deposited in the Affordable Housing Tax Fund to provide a source of funding for the creation, maintenance and improvement of safe and decent affordable housing in order to enhance the preservation and maintenance of the City's cultural and economic diversity." (text from the City of Evanston own pamphlet that was mailed to city residents prior to the election day) Read the complete pamphlet text online at this link: http://www.cityofevanston.org/government/clerk/transfer.shtml

The existing Evanston transfer tax remains at $5.00 for every $1,ooo of the selling price of a property. For example, a home that sells for $100,000 would be taxed by the City of Evanston in the amount of $5.00 x 100, a total of $500. This is typically paid by the property SELLER.

Other communities in the greater Chicagoland area have transfer tax rates that exceed Evanston's rate, and some are less then Evanston's rate. Shopping for a home includes being aware of closing costs, whether there is a transfer tax, and who pays for the transfer tax. Each community has a tradition of who pays the tax, but this is negotiable if the conditions are ripe for discussion.

Frantic Friday

2006-11-10T17:36:00.000-06:00

Friday is typically the last day of the work week for the majority of American workers, but not so for Realtors! Saturday and Sunday are prime time for real estate agents who are assisting buyers in their home search, and alternatively working for a seller client to get a home SOLD by holding an open house (sometimes 2 in one afternoon!).

Friday is my day to catch up on statistics for my area, prepare for my weekend client activity, and to do a bit of marketing work. Yes, as a real estate agent for Baird & Warner, I am considered an independent contractor, and nobody takes care of my business growth except me. So I spent lots of time today copying material to send to my real estate circle of friends, stuffing envelopes, licking the glue strip (ugh), and posting this blog for today.

This blog is a natural way to share some stats with you readers, so let's have at it. I am going to give you the latest mortgage rates for the best risk customers, and average market times for multiple communities where I frequently have transactions.

Mortgage rates: 30 year fixed - 6.125%
5/1 ARM - 6.0%
3/1 ARM - 6.125%
30 year FHA - 6.0%

Average market time for houses and condos combined:

Evanston active properties: 153
Evanston sold properties: 94 (6 months back)

Wilmette active properties: 104
Wilmette sold properties: 90 (6 months back)

Winnetka active properties: 184
Winnetka sold properties: 142 (6 months back)

Glencoe active properties: 217
Glencoe sold properties: 162 (6 months back)

Skokie active properties: 111
Skokie sold properties: 66 (6 months back)

Lincoln Square in Chicago active properties: 125
Lincoln Square in Chicago sold properties: 93 (6 months back)

East Rogers Park in Chicago active properties: 151
East Rogers Park in Chicago sold properties: 119 (6 months back)

btw, this is a terrific time to be a buyer; look at those market times above!! There is sooooo much on the market to choose from, and many sellers are getting anxious to find a buyer for their properties. If you have been hesitating about making a purchase in real estate, I urge you to wait no loner. Sure, the weather is getting cold and nasty, and who wants to move in the winter months? But this is a wonderful time to choose the perfect place, get a GREAT rate on mortgage money, and find the moving companies with lots of open slots on their calendars.

Have a great weekend, everyone. And drop me a note if you have any questions or comments on what you read here.

Susan

A Good Time to Buy Real Estate?

2006-11-06T23:19:00.000-06:00

The would-be purchasers of real estate in this country are being bombarded with opinions by the print media: newspapers, magazines, etc. "Inventory is up; sales are down. Where are prices headed?" Are you personally "on the fence" about going forward with a purchase of property? Here is what the National Association of Realtors (I am a member, btw, and more on what that means on another day) is saying this week:

http://img.realtytimes.com/rtimages/blanche/$file/narfactsheet.pdf

In short, YES, this is a great time to make a purchase. Mortgage money is still a bargain, the inventory levels are still high (i.e. there are many properties to choose from, giving you a better chance of finding the property of your dreams), and sellers are anxious to negotiate a contract. This does not necessarily mean that the negotiated price of a property will fall way below the true market value; but if a seller is facing a stressful situation of carrying multiple mortgages or simply wanting to be out from under his/her current property, the buyer can sometimes really find a bargain.

Buyer representation is my specialty. I always work to get my buyer clients the very best possible terms in their contract to purchase a home. I consider every good contract a personal victory for me, not just my client.

Let's Get This Blog Started!

2006-11-05T23:42:00.000-06:00

I am pleased to begin sharing lots of good real estate info to my clients and friends via a blog. Keeping this first post brief, I'll simply provide a mind dump on the amount of equipment I have to acquire and maintain to be a top notch Realtor these days:

Whew! Becoming a Realtor has done wonders for my techno-knowledge and abilities (with a little help from my friends!). Who knew that I would be routinely charging up my Blackberry, additional cell phone, Bluetooth device, electronic lockbox key, digital camera batteries, and more, starting three years ago? And to add the laptop computer, GPS device for my car, and a home wi-fi network to the mix, means I am just staying on the edge of the wave for modern realtor basic tools. Gone are the days of paper-published MLS listings, published only once a week, weighing several pounds each. Now I can look up a property for sale from my car, when a client calls me excitedly to say "I just spotted a new condo on Realtor.com, it's at 123 Main Street. What do you think about it?" And so on.....