Tenants, Do Your Homework!

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

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

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

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

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

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

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)

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

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?

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

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

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?

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

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

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

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

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

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

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

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

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

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

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

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

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

Da Bears and Real Estate in Chicagoland

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

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

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

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

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

Another Reason to Buy This Year

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

How Do You Find Me?

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

HIRE ME!

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



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



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



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



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



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

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

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

December 13, 7 pm. All tickets $48.50.

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

Appraisers - Why You Need to Be Concerned

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

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

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

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

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

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

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

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

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

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

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

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