Archive for November, 2008
GRATITUDE – THAT’S WHAT THANKSGIVING IS ABOUT
November 26th, 2008 categories: Market Trends
Before we embark on that whirlwind known as “THE HOLIDAYS,” it might be a good idea to take a quiet moment or two and reflect on the many things in our lives that merit gratitude. Perhaps it is a wonderful relationship, perhaps it is a great job, perhaps it is a group of long-time treasured friends, perhaps it is a new child or grandchild–whatever it is let’s just think a few thank-you thoughts. One of the things we all should be grateful for is our glorious United States of America–we may have hit a bit of a rough patch just now but is there any place else on the world you would want to live? As for me, I am grateful for a loving husband, a loving family, wonderful friends, a great office to work in, a beautiful city to live in, and most especially for the people who are supporting me in my new blogging effort! THANK YOU!
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REAL ESTATE AND THE INTERNET
November 25th, 2008 categories: Market Trends
Twenty years ago–in the blessedly long lost mists of antiquity–there was no internet and the Multiple Listing Service was elementary. Agents used books. In Chicago they were big heavy books, full of listings and prices, with black and white pictures of most of the buildings. Of course they were never 100% current. And–just as an aside–there were no cell phones so a Realtor had to have a large stock of coins at all times plus certain knowledge of pay phone locations outdoors and in condo buildings.
My, my–how things have changed! The internet has helped everyone–buyers, sellers, and agents. How has the internet helped buyers? Easy–buyers can begin their search on the internet and become familiar with areas, buildings, and pricing. A buyer can figure mortgage costs online too.
In only a few minutes, sellers can use the internet to see what market conditions are in their area–they can get an idea of what the competition is and what other similar homes have sold for.
Agents have probably been the main beneficiaries of the internet in real estate–no more lugging outsize books around. The Multiple Listing Service sites are usually interactive. When listing input is complete, the whole MLS knows about the new listing immediately. We can e-mail listings and Comparative Market Analyses with ease–the process of helping our clients learn about the market is sooooo much easier. It is just a matter of a few key strokes.
A cautionary word or two is probably needed now. We all know that Realtors sometimes over-describe their listings–look at the rhetoric in the description carefully. If it says “ready for your personal touches,” the home may need a total rehab.
Do use the pictures that usually accompany the listing in the internet. Frequntly a simple click on the picture of the building that is shown lets you see pictures of the interior of the home. That is, if the listing agent has taken the time and spent the money to have pictures made. Some buyers don’t want to look at a listing that doesn’t have pictures or has bad pictures. They feel that it must have something terribly wrong with it because it doesn’t have pictures. This may not be the case at all–if the listing sounds like something you want to see, go for it.
Sellers should be especially aware of the importance of having a great internet presence for their home. For buyers, the internet is probably best used to weed the possible from the impossible–and there is NO substitute for actually physically viewing property with your own eyes. I am proud to say that Baird & Warner was recognised by Chicago magazine as having the BEST real estate website in Chicago for 2008. Try It, you’ll like it!
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HOW NOT TO SELL AND HOW TO SELL YOUR HOME
November 24th, 2008 categories: Market Trends
Twenty years as a full-time, professional Realtor have given me a good grasp of the important factors in selling property. Here are the irrelevant and unimportant factors:
- The price you paid for it–if you inherit a property, you are entitled to the fair market value even though you paid nothing for it.
- The amount you NEED or WANT for it.
- The size of your mortgage.
- The appraised value–appraisals are an art form not a science. The purpose of an appraisal has a lot to do with the dollar amount on the appraisal–estate appraisals are generally low, re-finance appraisals can be higher.
- How much your neighbor, best friend, mother-in-law or sister think it should sell for.
- That lovely orange shag carpet that took you six months to find or that magnificent purple wall in the entry hall.
- You have no pressing need to sell and you are in no hurry.
The following are the important ways to determine the fair market value of a Chicago home or condominium:
- Hire a competent, experienced Realtor who is familiar with the area around your property.
- Review, with the agent, the Comparative Market Analysis–the active, pending, closed listings and market time for those listings. This review should be done carefully–with special attention paid to the days on market.
- Ask your broker for their “GUT” feeling. I am finding that my “gut” is well educated by now and I am paying attention to it more and more.
- TRUST your Realtor.
Please do feel free to contact me if you are thinking about selling a property–I will be happy to go over a Comparative Market Analysis with you. I can be reached at 312-981-2360 or just e-mail me.
Related Articles: How Much Will My Home Sell for (11-08), Agents May Say No To A Listing (11-08), To Sell First Or To Buy First That Is The Question (11-08).
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HOW MUCH WILL MY HOME SELL FOR?
November 21st, 2008 categories: Market Trends, Selling
This question is the most important question prospective sellers ask. A Realtor can show fancy brochures and post cards, promise open houses, promise advertising and all the things that DON’T sell a home, they SUPPORT the sale. It is important that your home have a good web presence, attractive feature sheets, that handsome postcards are sent to as many people as possible. Any more it isn’t just location, location, location, location–it is PRICE, PRICE, PRICE. The BIG question, the eight hundred pound gorilla question, is still HOW MUCH? What is the best way to determine how much. An experienced Realtor will do a number of things:
- First your Realtor will do a comprehensive study of the comparables in the area–homes with the same number of bedrooms and baths. The condition of the home compared to other homes with similar room numbers. Has the home been upgraded or is it in original condition?
- Obviously the location of the home is a key factor also–is it near public transportation, shopping, schools (and are the schools desirable schools).
- Your Realtor will study carefully all of the above and calculate an appropriate listing price.
If you need a net sheet to tell you how many dollars you will put in your pocket, your Realtor can prepare it for you. You may be able to realize a profit on your home if you purchased it three to five years ago–depending on the improvements you have made. If you bought your home one to two years ago, you may just break even or perhaps be under water for commission and closing costs. It isn’t pleasant for me to give you this news–it is simply the reality of the market today.
Related Articles: Real Estate Conversations (August 2008), To Sell First or to Buy First – That is the Question (November 2008), Agents May say “No” to a Listing (November 20008)
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APPRAISALS IN TODAYS’ MARKET
November 20th, 2008 categories: Buying, Selling
Appraisals are not some mysterious mumbo jumbo that has to happen before your loan is approved. The purpose of the approval is to protect the lender. Appraisers are being tougher today than they were a few years ago because the lenders don’t want to be stuck with a property that is worth less than the buyer is willing to pay for it. The appraisal is key to the loan being approved.
- How do appraisers determine the value of a home? For new properties the cost approach is frequently used–how much would it cost to build the property today. Resale homes are usually priced by comparing sales of similar properties in the building if the home is a condo or similar properties in the area if it is a single family home, townhouse, or multi-unit building.
- What is included in an appraisal? Of course there are a lot of details about the subject property and comparisons to similar properties. An evaluation of the general house market in the area is part of the report. Any problems in the structure of the home are also included–foundation problems, broken window seals, roof leaks, bad electric panels, etc. In a condo building, the appraiser usually asks for the management company’s name and phone number so they can find out what repairs have been made recently and what repairs are being planned.
- What do I do if the home I have selected doesn’t appraise? One thing you can do is to pay for a second appraisal and hope for a different result. Probably the best thing you can do is be sure your Realtor prepares a thorough and accurate Comparative Market Analysis before you write and negotiate a contract. And sometimes the solution is a re-negotiation of the sales price. Any serious seller understands that the buyer can’t possibly pay more than the bank will lend. If YOU are the seller, be sure your agent is at the appraisal armed with a Comparative Market Analysis and that they have asked the appraiser what information they need–a copy of the contract or anything else.
And there you have it–Appraisal 101 in today’s market! Any questions–I am at 312-981-2360 or just e-mail me.
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WHY YOU SHOULD CONSIDER LISTING YOUR HOME IN HOLIDAY TIME
November 19th, 2008 categories: Selling
Conventional wisdom says that you should begin to market your home in the spring market. In Chicago that market can begin in January or February. I think that is a lot of hooey. My nineteen years as a full-time Realtor have shown me that holiday time can be the BEST time to begin marketing a home. Here are the reasons why:
When does your home EVER look better? You probably have de-cluttered and done all of the things on the get-it-ready-to sell list. The fragrance of evergreens and holiday baking is in the air–what could be warmer or more hospitable?
The buyers who are out there are very motivated–people who HAVE to move. Transferees, sellers who have sold their homes–great prospects!
Less competition–there are fewer homes on the market and in the buyers’ market that exists today–that is a huge advantage. If you wait until the spring market, you will be going up against many more homes.
Just think about selling your home at holiday time–it makes a great deal of sense to me. If you would like to talk to me about selling your home, please call me at 312-981-2360 or just e-mail me. I will be happy to answer any and all questions to the best of my ability–NO OBLIGATION!
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IT’S FESTIVAL OF LIGHTS TIME!
November 18th, 2008 categories: Chicago Events
Chicago’s holiday season begins with a grand and glorious spectacle–the Festival of Lights. Each year it happens on the Saturday before Thanksgiving–November twenty second this year. The whole wonderful potpourri of events starts at 11:00 a.m. All along the parade route, Michigan Avenue from Oak Street to the Chicago River, something is going on all day long–choir and theater performances, ice sculpting, and live entertainment. Mickey Mouse is the Master of Ceremonies and he leads the parade south on Michigan Avenue as a million tiny white lights are illuminated–truly a fantabulous sight! The parade has many, many floats–in between Mickey and, of course, the red-suited jolly old man–there are other Disney character floats, local TV and radio personalities on floats, etc. etc. etc. And everyone has a good time! People start lining the avenue in early afternoon and, naturally, the closer you get to the river, the more crowded it is because of the fireworks. The parade begins at 6:00 p.m. and the day ends with an incredible fireworks display over the Chicago River at 7:00 p.m.
With this year’s economic difficulties, there are three places where people can share along the parade route:
- Bring a non-perishable food gift to the Eli’s Cheesecake booth. You will get a free piece of cheesecake and The Greater Chicago Food Depository will benefit from the food.
- A warm pair of mittens can be dropped off at the Southwest Airlines mitten tree. The Salvation Army will make good use of them.
- Toys for Tots would love you to leave a toy at any Harris Bank branch. The branches closest to the parade route are at the corner of Oak and Michigan (the start of the parade) and 33 West Ohio Street.
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AGENTS MAY SAY “NO” TO A LISTING!
November 14th, 2008 categories: Market Trends, Selling
Safe to say that most sellers can’t conceive of a listing agent saying that they don’t want a listing. Some experienced agents are thinking long and hard about taking an over-priced listing. Many sellers do not understand that agents spend money, lots of it, and time, lots of it, to get a listing sold. We furnish lunch or give gift certificates for broker open houses–we pay for the lunch and the certificate ourselves. We spend money on advertising and brochures and post cards–all in the hope we will sell the home. We sit Sunday open houses, we arrive a few minutes early to turn on lights so that the home shows well, we make follow up calls after showings so that our owners are aware of what is going on with their property, we monitor what is going on in the area of the listing–all of this takes tons of time. Essentially, many sellers do not understand that most real estate agents are independent contractors–we make nothing until the home closes so we have to ‘upfront‘ all of the expenses and time. In today’s market, some of us are not willing to spend our time and money on homes that are over-priced, homes whose owners have unrealistic expectations. This is a big change in agents thinking. A lot of us are regarding the taking of a listing as a business decision and choosing carefully where we want to spend our time and money. A good agent will tell you a realistic price and what needs to be done to the property to get it sold–if you don’t agree, the agent may decide not to take your listing. Above all, choose an agent who tells you the truth, not what they think you want to hear.
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WHAT DO I HAVE TO DO TO BUY IN TODAY’S MARKET?
November 12th, 2008 categories: Buying
This is probably one of the best times in recent years to consider a buying a home. Inventory is high and financing IS available. Having told you that NOW is a good time to buy let me also say that buying a home is a totally different animal than it was just two years ago. Financing was easy and quick–deals could be closed in as little as two weeks. Today it is almost impossible to close that quickly. We’re back to the thirty to sixty day or more closing time of yore. One prudent precaution is the inclusion of loan and appraisal contingencies in your sales contract for the new home. The mortgage contingency has always been common and now it is becoming more common to include an appraisal contingency.
If you are seriously considering buying a new home here are a few things to do:
- Get your financial information together immediately–as soon as you begin looking for a property–not after you have selected the property.
- Check what you need to do to qualify–good credit, verification of employment, verification of the funds needed to close (your down payment and your closing costs). Be prepared to provide various forms of documentation that may be required–tax returns, W-2, statements from your investment broker.
- Be prepared for the “just-one-more-thing” request–no matter what you submit, there always seems to be “just one more thing.”
- Find out how long it will take to close a transaction from your mortgage person so that you allow enough time in your purchase contract.
- Be sure you are working with an experienced loan agent and, for that matter, an experienced Realtor.
- Be patient with your loan agent and with the mortgage company–they are both having to do much more to complete your loan than they did two years ago.
Buying a home is certainly a more daunting task than it used to be–and home ownership is still one of the best long-term investments an individual can make. Having said all that about your loan and the process, if you would like an experienced Realtor to help you find the perfect home, please call me at 312-981-2360.
Related Article: Loans Still Available
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CHICAGO DEVELOPMENT SNEEZES IN ECONOMIC WINTER
November 10th, 2008 categories: Market Trends
An article in the Chicago Tribune on Monday, November third, explains in wonderful clear detail just what has happened in the Chicago condo development market with the credit freeze. It is true, all of us who live and work in the central part of Chicago have become accustomed to the endless concrete trucks, dirt hauling trucks, loads of drywall, platoons of workers walking in the neighborhood and cranes, cranes, cranes everywhere. Perhaps the neighborhood will be a bit less crowded and there might be just a bit less traffic! The author of the article, Blair Kamin, is a renowned architecture critic–his books and columns are always well written and interesting and even fun! The Donald’s Trump Tower is pictured at left.
Related Articles: Chicago Spire Construction Stops, Chicago Spire Penthouse Sold, Chicago Spire 30% Sold
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